In Massachusetts, the retail price of cannabis has dropped dramatically over the past four years, falling by more than two-thirds. In early 2021, an eighth of an ounce of cannabis cost around $50. As of now, that same quantity is available for about $15, according to state data.
Despite this overall decline, prices on Nantucket remain significantly higher than the state average. At local dispensaries like The Green Lady and ACK Natural, the cost for an eighth of an ounce varies from $35 to $60, depending on the strain selected. Recreational customers must also pay tax, while medical customers are exempt from this charge.
This price drop in the cannabis market, while beneficial for consumers, has created challenges for growers and retailers. Many businesses are struggling to keep afloat, with over 50 cannabis establishments reportedly surrendering their operating licenses. Entrepreneurs who invested substantial amounts—some in the millions—into cannabis ventures following the state’s legalization in 2016 are now facing financial difficulties as prices continue to decline.
Will Ried, who previously managed operations at RiverRun Gardens in Newburyport, expressed the fear many in the industry are feeling, stating that the current state of affairs is a “scary place to be.”
Industry experts anticipated this downward trend as the cannabis market expanded, noting that similar situations have occurred in other states as their legal cannabis markets matured. However, the steep price decline has caught many businesses off guard and has been described by Jennifer Ngo, chief of staff at Bud’s Good, as hitting businesses “almost like a kick in the teeth.”
As of now, the average price of cannabis continues to fall, further complicating the landscape for cannabis businesses in Massachusetts.
