Legalization in Washington State: The price of cannabis halved

Two years ago, the state of Washington fully legalized cannabis. Since then, the price per gram has been halved.

A study conducted by Washington's Liquor and cannabis Board concludes that prices continue to fall. This agency oversees the distribution of alcoholic beverages and cannabis in the state in the northwestern United States.

Read also: Price, the main reason for buying black-market cannabis on legal markets

When legal cannabis arrived on the market, the price of a gram of weed was close to $25. This extremely high record was due to a shortage of cannabis stocks. Harvests were insufficient to meet consumer demand.

Today, stock-outs are a thing of the past, and Seattle is amply supplied with weed, With supply outstripping demand, the cost of production is steadily falling. From a peak of 25$ At the end of 2014, the price of cannabis fell by 2% every month to reach 9$ currently. «A drop of 25 % per year, and it's set to continue,» says the study director.

Winners and losers

This price cut delights all customers of the state's cannabis industry. They can now smoke Girl Scout cookie or Bruce Banner without breaking the bank. Police authorities have also won the battle against the black market. According to the Washington Post, street dealers have all but disappeared from the state. On the other hand, this price cut has also had its share of losers.

First and foremost, shareholders are seeing the profitability of their products decline. The saturation of the cannabic market could be the cause, as the wholesale market is also affected. Prices have been divided by 3. A grower who was paid $9 per gram in 2014 is now paid $3. Another big loser is Washington State, which bases its tax revenues on the sale price of weed. Health authorities are concerned about this dizzying drop in prices for young consumers.

Future studies will have to confirm whether the prices charged are not too attractive.