Close Menu
  • Home
  • News
  • Lifestyle
  • Law
  • Business
  • Education

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

Ohio GOP Seeking to Change Voter-Approved Adult-Use Cannabis Law

May 30, 2025

U.S. Court of Appeals Rejects Legal Challenge Claiming Cannabis Prohibition is Unconstitutional

May 29, 2025

Montana Gov. Signs Bill Reserving $12M of Cannabis Tax Revenues for ‘Habitat Legacy Account’

May 28, 2025
Facebook X (Twitter) Instagram
Friday, May 30
  • Home
  • Contact
  • Privacy Policy
  • Terms & Conditions
Facebook X (Twitter) Instagram LinkedIn VKontakte
Smoke Professional
  • Home
  • News

    More Than 1,000 Arrested in Sweep of U.K. Weed Grows

    July 8, 2023

    Scotland Calls On UK To End ‘Failed’ Drug War With Decriminalization And Harm Reduction Approach

    July 8, 2023

    Germany’s draft law for first phase of cannabis reform

    July 8, 2023

    High Times Cannabis Cup Illinois: People’s Choice Edition 2023 Kicks Off

    July 8, 2023

    Pennsylvania Committee Advances Expansion to State Medical Cannabis Program

    July 7, 2023
  • Lifestyle

    How Watching the News Can Trigger Anxiety and Panic Attacks

    October 28, 2024

    Record High Cannabis and Hallucinogen Use Among Adults

    October 27, 2024

    Weekend Sleep Catch-Up May Lower Heart Disease Risk by 20%

    October 27, 2024

    Energy Drinks Linked to Poor Sleep Quality and Insomnia

    October 26, 2024

    First Psychedelic Church for Magic Mushrooms

    October 26, 2024
  • Law

    Ohio GOP Seeking to Change Voter-Approved Adult-Use Cannabis Law

    May 30, 2025

    Federal Lawmakers Call for Medicaid Fraud Investigation Into Florida Anti-Cannabis Political Group

    May 26, 2025

    Minnesota Ends Criminal Penalties for Bong Water

    May 23, 2025

    Minnesota Bill to Set Up Adult-Use Cannabis Industry Moves to Governor

    May 22, 2025

    Pennsylvania House Passes Cannabis Legalization Bill

    May 8, 2025
  • Business

    U.S. Court of Appeals Rejects Legal Challenge Claiming Cannabis Prohibition is Unconstitutional

    May 29, 2025

    Montana Gov. Signs Bill Reserving $12M of Cannabis Tax Revenues for ‘Habitat Legacy Account’

    May 28, 2025

    Minnesota Tribe Signs Agreements to Open Adult-Use Dispensaries Off Tribal Land

    May 28, 2025

    Washington to Issue New Social Equity Cannabis Licenses This Summer

    May 27, 2025

    DEA Raid Confiscates Over 29,000 Cannabis Plants in New York

    May 26, 2025
  • Education

    CBD and the Aging Population—What Science Says Today

    March 12, 2025

    Wholesale Nootropic Skincare: Boost Your Product Line

    March 10, 2025

    Ideal for Your Business Needs

    March 8, 2025

    A Must-have For Every Smoke Shop

    March 3, 2025

    The Perfect Addition to Your Product Line

    March 1, 2025
Smoke Professional
You are at:Home»Business»Medical and Adult-Use Pricing Trends
Business

Medical and Adult-Use Pricing Trends

adminBy adminJuly 7, 2023No Comments4 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Medical and Adult-Use Pricing Trends
Share
Facebook Twitter LinkedIn Pinterest Email

Photo banner collage new financial application how save more money stack coins penny dollars fingers connection isolated on green background
Illustration: Roman Samborskyi / Shutterstock

As new states open their doors to the cannabis industry, companies that win licenses are faced with some important choices regarding where and how they will conduct business—namely, whether they want to operate in the medical markets, adult-use markets, or both.

While traditional medical markets often are a first step for companies hoping to stake a claim in restricted-license states, they can be an expensive gamble without a large and growing patient population. Adult-use markets, particularly on the West Coast, also pose risks, including saturation and a glut of products that can lead to vicious competition.

For companies evaluating any state, whether an existing or new market, one of the most important data points to monitor is the price for similar products in medical versus adult-use shops. As more states come online, some notable trends reveal a predictable trajectory for both medical and adult use as the markets mature. In some states, retailers must choose medical or recreational licenses. In others, licenses are unrestricted and companies may opt to operate as medical, recreational, or both.

BDSA recently published a report comparing medical and adult-use markets. In Missouri, which launched medical sales in late 2020, prices have fallen faster over the past year and a half than in any other market. According to Brendan Mitchel-Chesebro, an analyst for the firm, the price drop is primarily due to an increase in the number of licensed cultivators at the same time existing cultivators increased their output.

“I think that’s been a big factor in what leads this trajectory of price drops,” Mitchel-Chesebro said. “And one trend we’ve come to expect is that medical states start with higher prices and then have a gradual decline. As the demand picks up with the launch of adult use, prices do rise a little bit going into the adult-use era before normalizing and sort of flattening out again.”

Michigan recently went through exactly that pricing cycle. The state’s Cannabis Regulatory Agency reported the average retail price for an ounce of flower dropped dramatically between November 2020 and November 2022, from about $376 to $95—a 75-percent decline. By mid-2022, the average prices for flower in the medicinal and adult-use markets were very similar: $102 and $95 per ounce, respectively.

Another interesting takeaway from the BDSA report? Flower and dabbable concentrates make up a larger percentage of sales in medical markets. Across the aggregate of all markets tracked by BDSA, medical markets saw flower bring in a 42-percent share of dollar sales in the fourth quarter of 2022, while adult-use markets saw flower make up a 37-percent share of dollar sales. In Colorado, where medical patients have access to a wide range of edibles (including high-dose edibles), flower made up a 48-percent share of dollar sales in the medical channel in 2022’s fourth quarter, compared to a 36-percent share of dollar sales in the Colorado adult-use channel over that same period.

“One aspect is that the adult-use states generally are more mature markets, so you see more sophisticated consumers and different types of consumers,” said Mitchel-Chesebro. “So that’s a big driving factor.” But he speculated a few additional differences may account for the disparity:

  • A larger variety of products are available in the adult-use market, where brands are trying to appeal to a wider range of people in a variety of demographics.
  • Regulators in medical markets are more likely to restrict products until activists, doctors, and patients lobby for an expanded range of choices.
  • Dosing is more established with inhalable products than with edibles and other recreational products.

Another notable trend: As adult use drives new growth in cannabis markets across the United States, it has a domino effect on growth in the global market.

“Something that’s important to keep in mind, especially as we’re seeing more markets in the South and Midwest open up, is legal markets are providing access to all the surrounding states that don’t have legal access,” said Mitchel-Chesebro. “There are something like 21 million people who live around Missouri who don’t have legal access, and they’re going to be a big piece of the growth going forward. That’s one of the reasons we think these emerging adult-use markets that are just launching now or in the next couple of years are going to be the biggest contributors to overall U.S. growth. And that is going to drive global growth, because the global industry is kind of driven by the U.S., and the U.S. industry is driven by adult use.”

Source link

AdultUse medical Pricing Trends
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous ArticleEurope told to clear way for reform, Germany’s draft law and Spain’s uncertainty over medical access
Next Article DEA Celebrates 50-Year Anniversary While Failing To Win The Drug War
admin
  • Website

Related Posts

Ohio GOP Seeking to Change Voter-Approved Adult-Use Cannabis Law

May 30, 2025

U.S. Court of Appeals Rejects Legal Challenge Claiming Cannabis Prohibition is Unconstitutional

May 29, 2025

Montana Gov. Signs Bill Reserving $12M of Cannabis Tax Revenues for ‘Habitat Legacy Account’

May 28, 2025

Comments are closed.

Our Picks

Ohio GOP Seeking to Change Voter-Approved Adult-Use Cannabis Law

May 30, 2025

U.S. Court of Appeals Rejects Legal Challenge Claiming Cannabis Prohibition is Unconstitutional

May 29, 2025

Montana Gov. Signs Bill Reserving $12M of Cannabis Tax Revenues for ‘Habitat Legacy Account’

May 28, 2025

Minnesota Tribe Signs Agreements to Open Adult-Use Dispensaries Off Tribal Land

May 28, 2025
  • Facebook
  • Twitter
  • Pinterest
  • Instagram
  • YouTube
  • Vimeo
Don't Miss
Law

Ohio GOP Seeking to Change Voter-Approved Adult-Use Cannabis Law

By adminMay 30, 20250

Republican lawmakers in Ohio are seeking to make changes to the 2023 cannabis legalization law approved…

U.S. Court of Appeals Rejects Legal Challenge Claiming Cannabis Prohibition is Unconstitutional

May 29, 2025

Montana Gov. Signs Bill Reserving $12M of Cannabis Tax Revenues for ‘Habitat Legacy Account’

May 28, 2025

Minnesota Tribe Signs Agreements to Open Adult-Use Dispensaries Off Tribal Land

May 28, 2025

Subscribe to Updates

Get the latest creative news from Smoke Unlimited about Weed & CBD vaping.

From Our Partners
About Us
About Us

Get all the current news stories, latest trends and legislation regarding cannabidiol, products, usages and its benefits. So don’t miss out any buzz and stay tuned! We offer a minute to minute updates regarding Marijuana industry.

Facebook X (Twitter) Instagram Pinterest
Our Picks

Ohio GOP Seeking to Change Voter-Approved Adult-Use Cannabis Law

May 30, 2025

U.S. Court of Appeals Rejects Legal Challenge Claiming Cannabis Prohibition is Unconstitutional

May 29, 2025

Montana Gov. Signs Bill Reserving $12M of Cannabis Tax Revenues for ‘Habitat Legacy Account’

May 28, 2025
Sponsors
Copyright © 2025. SmokeProfessional
  • Home
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.