Oregon cannabis sales declined slightly in 2025 despite record-breaking cultivation production that saw retail prices fall to historic lows.
Annual sales fell from $960 million in 2024 to $925.5 million in 2025, according to Oregon Liquor & Cannabis Commission data, continuing a downward trend from the COVID-19 pandemic-driven peak of $1.2 billion in 2021.
That’s despite the median price per gram of cannabis flower dropping to $3.33 in December, down from $3.52 a year ago, according to the OLCC.
It’s the price crash – and not any flagging demand – that’s behind the drop in sales, experts said.
“I don’t think you’ll see price increases anytime soon,” Portland-based cannabis attorney Vince Sliwoski told Oregon Public Broadcasting. “In fact, they may keep coming down.”
Record Oregon cannabis harvest amid COVID-19 ‘correction’
October’s outdoor harvest, which Sliwoski said is the largest ever recorded, significantly contributed to the oversupply.
Oregon growers harvested more than 13 million pounds of cannabis in 2025, up from 12.3 million pounds the previous year.
David Alport, a craft cannabis farmer and owner of Bridge City Collective retail stores in Portland, said the pandemic boosted the state’s cannabis industry, which is now in the process of correcting.
“That’s forced price compression,” Alport told OPB. “It’s forced everybody to lose money across the supply chain.”
“The reality is, there’s way too many stores, there’s way too much supply, and so it’s a matter of the market hopefully working itself out.”
Oregon marijuana sales stronger than California cannabis market
Still, the picture appears rosier in Oregon than in California, where a brief tax hike – since repealed – helped drag sales down to a five-year low.
California cannabis retailers reported just shy of $940 million in cannabis sales in the third quarter of 2025, according to California Department of Tax and Fee Administration data.
That’s down from $993 billion in the second quarter of 2025 and represents the lowest quarterly haul since early 2020, before sales spiked during the COVID-19 pandemic.
Annual sales were on pace to drop before $4 billion for the first time since the market’s launch.
