New York Cannabis Prices Drop
In New York, it’s becoming more affordable to purchase cannabis.
Following legalization, the average cost of cannabis has decreased by 17%, largely thanks to the expanding market and the increasing availability of various brands in stores, according to industry insiders.
As of 2023, the average price per unit of cannabis stands at $32.15, down from $38.61, based on a report from the state Marijuana Control Board.
There are now over 500 licensed marijuana shops in New York, and a growing number of farmers are producing marijuana products, including gummies, e-cigarettes, and beverages.
Regulators from the Office of Cannabis Management (OCM) noted that it’s typical for prices to decline as more stores open and competition escalates, similar to trends observed in other legalized states.
“Competition is fierce, with all these brands vying for shelf space,” remarked Britni Tantalo, president of the New York Cannabis Retail Association. She also mentioned the significant rise in retail locations opening up.
The average price per unit encompasses a variety of cannabis products on the market, from cannabis flower to edibles and vaporizers.
For instance, the cost for an ounce of cannabis flower ranges from $100 to $125, reflecting a markup of about 50% over wholesale prices.
Joints are available for around $10, and mini-joint packs (2.5 grams each) go for $25. Some retailers state that e-cigarettes can be as costly as $30 per gram.
Osbert Orduna, CEO of Cannabis Place in Queens, noted that more growers and processors have emerged, which has allowed them to reduce costs for their customers.
“That’s beneficial for us, as it helps us stay competitive against the illegal market,” he added, pointing out that unlicensed dealers avoid overhead and taxes.
Orduna anticipates further price drops now that state regulations permit retailers to offer promotional discounts for veterans, seniors, teachers, and first responders.
After two challenging years characterized by legal disputes and regulatory hurdles, New York’s market seems to be stabilizing.
Despite the recent reductions, cannabis prices in New York remain higher than the national average among states where marijuana is legal, as noted by the OCM.
In New York City, the average marijuana purchase price is $33.15. While in the Buffalo/Western New York area, it’s notably cheaper at around $26.39, making it the least expensive region in the state.
Conversely, Long Island’s prices are the highest, averaging $41.41 per sale. This higher cost is partly due to the limited number of cannabis stores, as many areas like Nassau County do not permit them.
Legal dispensaries have generated approximately $1.4 billion in sales over the past year, though this figure may be underestimated since some licensees haven’t reported their data recently, according to OCM’s monthly report.
The report indicated that the numbers for September and October might reflect lower compliance and could underestimate actual sales figures, suggesting that total sales might reach nearly $2 billion by year’s end.
Since launching the legal cannabis industry nearly three years ago, total retail sales have amounted to around $2.44 billion.
