The higher the cost is lower.
Prices for empire state marijuana products are falling as a boom in the legal weed industry, spurring more competition while more outlets are open.
According to an analysis by the Cannabis Administration, the average price has dropped by 5% from $41.13 to $38.96 over the past year.
And edible prices such as gummies and chocolate bars plummeted 14% from $29.58 to $25.46.
“With the market has grown to over 500 brands and almost 370 of 370 stores open, John Kagia, executive director of market policy, innovation and analytics at OCM, told the Post.
He said the price drop is likely due to an increase in the number of brands with value pricing and cost reductions when competing for shelf space and market share.
“Retailers are adjusting prices as part of their competitive strategy as more locations have opened,” Kagia said. “It remains a bit early to judge all the factors that drive retail price compression, but it is common to see price compression as new markets mature and competition grows.”
The price of concentrate and steam has been sinking 15% each, with 1 gram of concentrate plunging from $58.92 to $50.30, with 1 gram of steam sliding from $64.89 to $55.35.
Currently, Empire State has 368 licensed weed clinics, up from 245 licensed retail weed outlets in November, up from just 41 stores at the end of 2023.
Kagia said the price decline is good news for consumers and the market and bad news for illegal weed sellers.
“The decline in prices indicates an increasing diversity of products available in the market,” Kagia said. “They increase affordability for consumers and allow legal markets to compete more effectively against illegal markets.”
One cannabis merchant said that wholesalers, farmers and processors lowered the price of his store after they lowered the wholesale price.
“It comes down to market share,” said Ozbert Ordona, CEO of Cannabis Place in Middle Village. “Everyone is competing for smaller pieces. It’s good that consumers make prices more competitive in illegal markets. It creates an alternative for consumers.”
After the rocky rollouts from 2023 to early 2024, the dramatic ramp at cannabis retail clinics means licensed stores are reducing their income per month.
Per store sales peaked at $599,000 in August last year. In February this year, per store revenue fell to $351,000.
Total retail sales have reached $1.46 billion since the opening of the first license pot store at the end of 2022.
However, retail sales are at a pace to reach just $1.5 billion in the 2025 calendar year alone, the OCM report said.
New York approved a law in 2021 that legalizes the sale of marijuana for recreational use.
