What the Extreme Drop in Wholesale Prices Means for the Cannabis Industry
MJ Business Attorneys
JANUARY 23, 2023
The severe drop in wholesale cannabis prices in many states over the past year can be traced to a few key factors: Regulatory missteps, high taxes for consumers, and competition from still-thriving illicit markets are contributing to the industry’s current woes. Additionally, in states that were early legalization adopters like Colorado, Michigan, and Oregon, production capacity has caught up to the needs of the mature market and supply continues to outpace demand.