John Schroyer
Pennsylvania’s medical marijuana market is crashing.
Thanks to ballooning supply, retail MMJ prices have fallen 32% per gram, and at the wholesale level, prices have plummeted 62%, the Pittsburgh Post-Gazette reported.
The market was at its height the summer of 2021, when medical cannabis cost $14.53 per gram, and at the wholesale level it may have peaked in January 2021 at $10.65 per gram. As of March 23, retail prices had fallen to $9.81 and wholesale prices were just $4.09, the Post-Gazette found.
“Supply has well outstripped that demand increase,” said multistate operator Jushi’s strategy director, Trent Woloveck. “I don’t see any more supply coming online due to current demand.”
The state has a solid 898,992 registered MMJ patients, and sales since the market launched in 2018 have hit $7.3 billion as of March. But the price crash has companies like Jushi and Trulieve – another MSO with a Pennsylvania footprint – possibly reevaluating their infrastructure plans for further development.
Trulieve, for instance, still has a 508,000-square-foot cultivation and manufacturing facility yet to open. And another MSO with a Pennsylvania license, Parallel, has a yet-to-be-completed 124,000-square-foot facility.
Pennsylvania cannabis attorney Steve Schain told the newspaper that the industry is “beyond overextended” and that “we’re not seeing an investment in infrastructure” due to the MMJ oversupply problems.
