Cost of weed products in NY drops as legal marijuana industry booms

The cost of getting high is going lower.

The price of marijuana products in the Empire State is dropping as the legal weed industry booms, spurring more competition while more outlets open.

The average price of 3.5 grams of flowered cannabis dropped 5% over the past year, from $41.13 to $38.96, according to an analysis by the state Office of Cannabis Management.

And the price of edibles such as gummies and chocolate bars plummeted 14%, from $29.58 to $25.46, the analysis found.

“As the market has grown to over 500 brands and nearly 370 stores open, we have begun to see average retail prices fall in several leading categories, including Flower, Edibles, Concentrates and Vaporizers,” John Kagia, OCM’s executive director of market policy, innovation and analytics, told The Post.

The decline in prices, he said, is likely due to an increase in the number of brands with value pricing and lowering costs as they compete for shelf space and market share.

“Retailers are adjusting their prices as part of their competitive strategy as more locations have opened,” Kagia said. “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.”

Prices for concentrates and vapes sunk 15% each, with one gram of concentrates plunging from $58.92 to $50.30 and one gram of vapes sliding from $64.89 to $55.35, the analysis showed.

There are now 368-licensed weed dispensaries in the Empire State, up from 245 licensed retail weed outlets in November and just 41 stores at the end of 2023.

Kagia said the price drops are good news for consumers and the markets — and bad news for illegal weed sellers.

“Lower prices indicate a growing diversity of products available in the market,” Kagia said. “They increase affordability for consumers, and they enable the legal market to compete more effectively against the illicit market,”

One cannabis merchant said he lowered the prices at his shop after wholesalers, farmers and processors dropped their wholesale prices.

“It comes down to market share,” Osbert Orduna, CEO of The Cannabis Place in Middle Village, said. “Everyone is competing for a smaller piece of the piece. It’s good for consumers to make the price more competitive with the illegal market. It creates an alternative for consumers.”

The dramatic ramp in cannabis retail dispensaries — after the rocky rollout through 2023 and early 2024 — means licensed stores are now generating less revenue per month.

Sales revenue per store peaked at $599,00 last August. In February of this year, revenue per store dropped to $351,000.

Total retail sales hit $1.46 billion since the first licensed pot store opened at the end of 2022.

But retail sales are on pace to reach $1.5 billion alone for calendar year 2025, the OCM report said.

New York approved a law in 2021 legalizing the sale of marijuana for recreational use.