Business

Colorado Marijuana Prices Reach Record Low

After record-breaking sales and high prices in 2020 and 2021, Colorado's marijuana industry over-expanded.
After record-breaking sales and high prices in 2020 and 2021, Colorado's marijuana industry over-expanded. Jacqueline Collins
Colorado marijuana prices have dropped to their lowest point since recreational pot sales began in 2014, according to the state Department of Revenue.

The DOR's average market rates (AMR) for wholesale marijuana are released every quarter. Despite including "average" in the name, the AMR actually measures median prices of various wholesale marijuana categories, including flower, trim and plant matter allocated for extraction. Two of those categories are now lower than they've been since the DOR began tracking such data.

The most recent AMR report shows marijuana flower sitting at $658 per pound, about 7 percent less than the AMR of $709 released in June — the previous record low. And trim allocated for extraction and infused products slid to $76 per pound, the lowest point since the category was first tracked in 2018 and a 37 percent drop from the previous low of $120.

The price per pound of marijuana flower allocated for extraction ($277), standard trim ($249) and whole plants ($126), as well as immature plants ($13 each) and seeds ($4 each) all stayed flat, according to the DOR.

Colorado marijuana businesses registered a different record low earlier this week, when the DOR released the monthly dispensary sales figures. According to that monthly report, medical marijuana sales totaled $18.3 million in July 2022, the lowest monthly total since Colorado began tracking sales numbers in 2014.

After record-breaking sales and high prices in 2020 and 2021, Colorado's marijuana industry over-expanded, and that growth has led to price drops. The AMR for wholesale pounds of marijuana flower has fallen nearly 62 percent since January 2021, while annual dispensary sales are currently on pace to come up about 20 percent short of the $2.2 billion sold in 2021.
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Thomas Mitchell has written about all things cannabis for Westword since 2014, covering sports, real estate and general news along the way for publications such as the Arizona Republic, Inman and Fox Sports. He's currently the cannabis editor for westword.com.
Contact: Thomas Mitchell