Prices to get high on Cannabis in Arizona were lower in 2023
Arizona saw a decrease in average wholesale cannabis pricing across the board in 2023, according to a new study.
LeafLink’s 2024 Wholesale Cannabis Pricing Guide, published on April 2, showed that not only in Arizona, but across the U.S., average cannabis wholesale pricing was down in 2023 compared to 2022. Similarly, data from the Arizona Department of Revenue showed that state-wide cannabis retail sales actually dropped 4.4% from $1.41 billion in 2022 to $1.36 billion in 2023.
LeafLink is a New York-based payment platform used across the legal cannabis industry for wholesale transactions.
Cannabis cultivation in Arizona is uncapped, which drove to oversupply dynamics and lowered prices, according to LeafLink’s report.
In 2023, the average price for cannabis concentrates in Arizona dropped by 24.8% compared to 2022, from $18.59 to $13.98, according to the report. Cannabis flower priced in the $0 to $499.99 range, saw a significant jump in the percentage of sales for 2023, from 37.5% to 56.9%.
Arizona’s gross merchandise value for wholesale cannabis was just under $355 million in 2023. The largest category for cannabis sales in Arizona is vape cartridges, which accounted for 36%, or around $129 million, of the state’s GMV.
Looking at 2023’s wholesale cannabis prices compared to other states, Arizona is in the middle, coming in at No. 7 in LeafLink’s rankings of the least expensive by state. The study did find that when it came to cannabis flower pricing, Arizona had the least expensive wholesale product, but when it came to pre-rolled products, Arizona had the most expensive in the entire country.
