One of the markers of success in the cannabis industry is the wholesale price per pound. According to the U.S. Spot Index from Cannabis Benchmarks, prices peaked in mid-February. Since then, the volume-weighted average price has fluctuated within a seven-percentage-point range – or more than $100 per pound.
While the trend may be downward prices are at least higher than a year ago in 2019 when the market was recovering from a difficult 2018.
It would be logical to assume the downward trend is directly related to the COVID-19 pandemic. A few states like Massachusetts ordered the industry to shutter, considering it a non-essential business. And the Nevada average price is down which may be related directly to tourism in Las Vegas coming to a full stop in the pandemic.
But overall this industry marker is holding indicating that activities like consolidation in markets, better supply chain management, and increased number of markets coming online in the last 12 months have left the industry in good stead.