Why CT cannabis prices have seen a decrease recently

The average price of recreational cannabis is dropping with the average price of medical cannabis remaining largely stagnant, though medical cannabis sales have outpaced recreational sales three months in a row, according to state data.

There were $12,576,006.42 in medical cannabis sales in March, up from $11,441,889.68 in February, an increase of 9.9 percent. January medical cannabis sales totaled $8,068,751.72.

Sales of recreational cannabis also rose, a 36.1 percent increase from $7,024,251.95 in February to $9,563,148.43. That’s nearly double the $5,104,892.05 in sales during the month of January, when recreational cannabis retail sales began in Connecticut.

There were also more medical cannabis products sold compared to recreational cannabis. The number of medical cannabis products increased from 316,644 in February to 339,062 in March, a 7 percent increase.

Comparatively, the number of recreational cannabis products sold increased 39.3 percent, from 168,565 in February to 234,974 total products sold in March. 

The average price of recreational cannabis products has dropped month over month since sales began. In January, the average price of cannabis products was $44.6. That average cost dropped to $41.82 in February and $40.7 in March, a decrease of 8.8 percent since recreational sales began. 

By contrast, the average cost of medical cannabis products has increased 3.8 percent, going from $35.67 in January, to $36.11 in February and $37.06 in March.

As it is considered a medication, the state does not collect tax revenue from medical cannabis sales.

Ben Zachs, chief operating officer of Fine Fettle, which operates several Connecticut dispensaries, said the wholesale price of cannabis has decreased since recreational sales began.

“Wholesale pricing has gone down recently, what we purchase from our suppliers,” he said. “When adult use started, our wholesale prices went up. Seeing how the market has turned prices have gone down.”

When asked why the state was reporting an increase in the average cost of medical cannabis products, Zachs said it was because higher-priced products have become available.

“Concentrates have become available again. In January and February, there were little to no concentrates available. Those have become available again to the medical patient,” he said. “I think that it’s been a change in the menu expanding again. We’ve also gotten back a few bigger items. For medical patients, half ounces have come back which are more weight and volume.”

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