San Francisco cannabis report: Consumption to spike, prices to plummet

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The amount of legal marijuana consumed in San Francisco could triple – to 30 million grams per year – after California’s recreational market launches in January, but cannabis prices will fall “dramatically,” according to a new report.

A draft tax report compiled by the City Controller’s office showed that once recreational sales begin, total regulated cannabis consumption is expected to increase to 18 million-30 million grams, according to the San Francisco Examiner.

By contrast, the city’s 45 city-permitted medical marijuana dispensaries or delivery services currently sell about 10 million grams of cannabis annually, the newspaper reported.

San Francisco’s legal adult-use program could generate $130 million-$240 million in annual sales, the report determined.

But the price of cannabis could fall from its current rate of $14 per gram to about $7-$8.

San Francisco Mayor Ed Lee signed the city’s recreational cannabis regulations into law last week, one day after the Board of Supervisors approved them.