How Is US Inflation Impacting The Cannabis Industry? Average Prices In Some Markets Reach New Lows

Connecticut: Average Price Of Adult Use Weed Product Reaches New Low

For the first time since adult-use cannabis sales launched this February in Connecticut, medical marijuana sales declined last month, amounting to $11.4 million, compared to $12.6 million in March. Even though on a decline last month, medical sales were still above recreational, which hit $10.2 million, writes Stamford Advocate, citing the state official’s Thursday report.

What happened: The average price for adult-use weed has been dropping over the last few months, reaching a new low in April of $39.58, which is roughly 50 cents lower than the previous month. At the same time, the average price of medical marijuana products mostly remained the same at around $36.51.

Naturally, as recreational products became more affordable on average the number of products sold rose, reaching a new record of 259,499 in April.

It is important to note that the decline in medical marijuana sales corresponds with a steady decrease in the number of registered medical marijuana patients in the Nutmeg State.

Illinois: Cannabis Sales Growth Stalls In April

The cannabis sales in the Prairie state are having a similar fate being impacted by the lower prices and out-of-state competition, reported Crain’s Chicago’s John Pletz.

For the first time since Illinois welcomed recreational marijuana in 2020, cannabis sales growth stalled this April totaling $132 million, versus $131.9 million in April 2022.

While the number of products rose 9% year-over-year, the average price has declined like across many other markets, such as Colorado, California, and Michigan, mostly thanks to the inflation impact and economic challenges across the country.

What’s more, Illinois was impacted by Missouri recreational market launch this February, with the total out-of-sate sales declining 21% year-over-year in April. This May, Missouri became a $1 billion-dollar market.