The prices of cannabis flower, along with the prices of other recreational marijuana products, have risen to record highs during the coronavirus pandemic. New data from retail cannabis stores throughout the United States shows that increased demand for cannabis flower has resulted in higher average sales prices, providing some indication of just how strong the cannabis market has become. What could this mean for the cannabis industry going forward, and could the increased demand and higher sales figures continue after the COVID-19 pandemic subsides? Keep reading this blog to learn more.
Higher Prices for Cannabis Flower in Colorado, California, Nevada, and Washington
While retail sales prices for cannabis flower have been increasing nationwide over the past year, prices have seen a significant spike in four states: Colorado, California, Nevada, and Washington. According to Headset, an analytics company based in Seattle, WA, wholesale flower prices are up considerably in these states over the past three (3) months when compared to sales data from late 2019 and early 2020. On average, the four states have seen prices for cannabis flower rise by approximately 17%.
The higher prices are seen as a reflection of healthy demand for cannabis product during the pandemic. When a lot of businesses either closed down or began to operate remotely, many people found themselves stuck inside for days, weeks, and months on end, and cannabis consumption became more popular than ever in states where marijuana is legal for either recreational use or medical use. This, in turn, led a lot of cannabis consumers to explore new ways of smoking or otherwise consuming cannabis. What cannabis operators soon began to notice was that some of their more popular cannabis flower products began to fly off shelves.
In Colorado, the demand for cannabis flower was particularly strong. This caused a spike in wholesale flower prices in the state, with the average market rate per pound going up by 30% over a three-month period at the end of 2020. For premium marijuana flower in Colorado, prices have gone even higher because consumers are seeking out top-tier cannabis brands like Cookies, Kaviar, and Snaxland that offer artisanal cannabis. For certain brands, the price of high-grade flower in Colorado currently exceeds $4,000 per pound.
Increased Demand for Marijuana Pre-Rolls, Capsules, and Concentrates During COVID-19 Pandemic
The increased demand, and subsequent rise in retail prices, for cannabis flower during the COVID-19 pandemic certainly stands out to cannabis industry observers. However, cannabis flower is not the only retail product that has benefitted from cannabis consumers seeking out new ways to smoke marijuana. For example, the average sales prices of pre-rolled marijuana have risen by 15% when compared to the first few, pre-pandemic months of 2020.
In addition to setting higher average sales prices for cannabis flower and pre-rolls, dispensaries in Colorado, California, Nevada, and Washington have also responded to increased demand for cannabis capsules and cannabis concentrate by raising prices on those products as well. According to data compiled by Headset, the average retail price of cannabis capsules rose by more than 11% since early 2020, and the average retail price of cannabis concentrate rose by more than 3% since early 2020.
Contact Scythian Cannabis Real Estate Today
Higher prices and increased demand for certain cannabis products certainly bodes well for the cannabis industry as a whole and especially for cannabis operators in Colorado, California, Nevada, and Washington. Scythian Real Estate is a privately held cannabis real estate fund that works with some of the most sophisticated cannabis operators in these states and others. If you are a cannabis operator and would like to learn more about Scythian, contact us today.
PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.