Recreational marijuana raked in close to $11 million in sales in just the first week. However a lot of patrons were stunned to see cannabis prices and the finalized serious sum at the bottom of their receipts. Cannabis products sold in Illinois are virtually double the price of those sold in other legal states like Oregon and Washington. Wait…what? Why are their cannabis prices so high?
The blunt answer is the overall supply and demand. Illinois does not yet have the supply to meet the extremely high demand for recreational cannabis.
Amassing an immense amount of growers in states like Oregon and Washington, dispensaries have more than enough flower to sell an eighth of an ounce flower for $35. Compare that to Illinois, where the same flower is sold for nearly $70. Andy Seeger with Brightfield Group, a cannabis market research firm, says Illinois growers cannot keep up.
“One thing that we need to think about is that this was a rather accelerated timeline, we’ve seen Illinois go from no marijuana to fully legalized cannabis in ten years, which is the quickest timeline we’ve seen in any state,” said Seeger.
He mentioned as regulations expand, and more dispensaries and cultivators enter the Illinois market, cannabis prices will eventually go down overtime.
“Maturity where a person can come into a dispensary and purchase a product readily available, we should see that by end of summer…Product will slowly begin to meet demand and we expect to demand to rise as well,” added Seeger.
And since cannabis is illegal on a federal level, dispensaries here in Illinois will need to wait for growers, they can only sell cannabis grown within the state.
Photo Courtesy of Chicago Sun-Times