Cannabis sales in California declined in 2022 for the first time since the launch of the adult-use market in 2018, according to Department of Tax and Fee Administration (DTFA) data outlined by Forbes. In all, sales dropped 8.2% to $5.3 billion from the $5.77 in sales last year.
California still represents 20% of the nation’s $26 billion legal cannabis industry, the report says.
The wholesale price for cannabis in California was down last year by 26% year-over-year to $665 a pound. Since 2017, the year prior to the launch of legal sales, California cannabis wholesale prices are down about 50%, according to a New Leaf Data Services report outlined by Forbes.
Pablo Zuanic, an analyst at Cantor Fitzgerald who covers cannabis, told Forbes he believes that mature markets like California saw a revenue boost in 2020 and 2021 due to increased consumption during the Covid-19 pandemic and that the end of pandemic-era policies, including stimulus checks, paired with rising inflation, have added to the decline. He noted that there was “only” an 8% drop after a 23% increase in 2021 and a 68% increase in 2020.
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Wed / Mar 1st by TG Branfalt
- Photo Credit: Ganjapreneur
- Source : Ganjapreneur
Link to original : California Cannabis Sales Decline for First Time Since Adult-Use Launch
