New York’s Marijuana Prices Keep Dropping as the Legal Market Expands
It’s getting cheaper to get high in New York.
The average price of pot has plummeted 17% since legalization in New York state, with a market ramp up that has boosted the availability of marijuana brands in more stores, industry officials said.
In 2023, the average “unit price” for cannabis was $38.61. It’s now $32.15, the state Office of Cannabis Management reports. The number of licensed pot stores in the Empire State has soared past 500, stocking products from a growing group of farmers growing marijuana and more cultivators manufacturing gummies, vapes and even beverages. Regulators with OCM said it’s normal for prices to come down as more pot stores open and more products become available, spurring competition, as has happened in other states that legalized marijuana. “Competition is high. We have all these brands fighting for shelf space,” said Britni Tantalo, president of the New York Cannabis Retail Association.
“We are seeing more doors open,” Tantalo added, referring to the dramatic increase in retail dispensary openings.
The average price per unit covers the sales of all cannabis products in the legal market that includes weed, edibles, concentrates, beverages and vaporizers. As the legal market keeps expanding, consumer access to regulated marijuana continues improving.
For instance, an ounce or 28 grams of weed in “flower” form could cost $100 to $125, a 50% markup from the wholesale price. A joint can go for $10, while a pack of five mini joints or pre-rolls or 2.5 grams could run $25. Vapes at 1 gram could cost $30, according to a pot retailer.
“There are more cultivators and processors now. When we get a lower wholesale price, we can pass along a lower cost to the customer,” said Osbert Orduna, CEO of The Cannabis Place in Middle Village, Queens.
Illegal pot dealers don’t have the overhead costs or have to pay the 13% in taxes that licensed weed operators do to feed government coffers, he noted. This difference highlights why prices have plummeted and why the legal market is becoming more attractive to consumers seeking tested, regulated marijuana products.
Prices will go down further after pot merchants just got the OK from the state to offer promotional discounts on their products — to veterans, seniors, teachers and first responders, Orduna said.
The New York market has hit higher ground after a rocky two-year rollout marred by lawsuits and bureaucratic snafus. Weed products in New York are still more expensive than the national average of states where marijuana sales are legal, according to the OCM. But price gaps are closing as costs continue to fall in the expanding legal market, where competition has plummeted barriers for both buyers and sellers.
Overall, sales could approach $2 billion by year’s end as New York’s regulated marijuana industry continues growing in strength and stability.
