Low wholesale cannabis prices are behind the closures of Massachusetts marijuana retailers and producers in 2023.
At least 17 marijuana businesses have either lost or returned their licenses to operate in the state, according to MassLive.com.
Not all shuttered entirely, however, the news site reported.
Some might have stopped operating in the adult-use market but are still working in medical marijuana, for example.
And the number could be higher because some cannabis companies might be planning to sell their licenses rather than give them up.
That’s because prices have tanked: The average cost of an eighth of marijuana in Massachusetts was $45 in 2021, according to state data.
Now, an eighth is roughly $20.
“It’s a buyer’s market,” Jennifer Ngo, the chief of staff at cannabis retail chain Bud’s Good, told MassLive.com.
Cannabis shopping by out-of-state residents has also declined in Massachusetts this year as nearby states such as Connecticut, New York and Vermont have legalized marijuana.
In June, Florida-based marijuana multistate operator Trulieve Cannabis announced it was exiting Massachusetts.
With 300 licensed marijuana stores and 120 permitted producers still operating in Massachusetts, producers will develop and implement more efficient and less costly ways to produce cannabis, which will drive prices down more, according to Robin Goldstein, economist and author.
“I think the prices are going to continue to fall,” Goldstein told Masslive.com.
“People should expect that we’re only partway there.”
