Average dispensary prices in New York have reached $38.96 for 3.5 grams of cannabis, slightly below the average price-per-eighth during the industry’s launch, which was $41.13.
Retail Cannabis Prices Falling in New York as Market Matures
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The average price for 3.5 grams of cannabis at New York dispensaries has fallen slightly since the launch of legal sales from $41.13 at the launch of the program in 2022 to $38.96, the New York Post reports. One gram of concentrate decreased from $58.92 to $50.30 and one-gram vape products from $64.89 to $55.35, according to an Office of Cannabis Management (OCM) analysis outlined by the Post.
John Kagia, OCM’s executive director of market policy, innovation, and analytics, told the Post that New York’s market has over 500 brands with about 370 shops open.
“Retailers are adjusting their prices as part of their competitive strategy as more locations have opened. While it remains a little early to determine all the factors driving the retail price compression, it is common to see price compression as new markets mature and competition intensifies.” — Kagia to the Post
Kagia added that “Lower prices indicate a growing diversity of products available in the market.”
“They increase affordability for consumers,” he told the Post, “and they enable the legal market to compete more effectively against the illicit market.”
Last August, sales revenues per dispensary reached $599,000, according to state data, but in February per store revenues dropped to $351,000. Sales in the state have totaled $1.46 billion since the launch of the adult-use market and are on pace to reach $1.5 billion this year alone, according to OCM data.
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