Massachusetts’ legal cannabis market has topped $6 billion in adult-use sales since its 2018 launch, but signs point to slower growth and steep price drops in the maturing market.
A report from the state’s Cannabis Control Commission released this week showed adult-use cannabis prices have fallen 62% since the market opened, with the average price per gram dropping from $14.09 in November 2018, “from the inception and implementation of Massachusetts’ adult-use marijuana retailers,” to $5.36 by April 2024.
“Some decreases are expected as the market saturates all across the Commonwealth. We know this,” said Dr. Julie Johnson, the commission’s chief of research, said during a presentation of the findings at a public meeting Tuesday. “As the price of cannabis decreases, additional adult-use cannabis consumers in Massachusetts may end up entering the market, such as light cannabis users.”
However, Johnson warned that regional competition threatens future growth.
“As more East Coast states implement adult-use cannabis legalization, Massachusetts may expect decreases in overall purchases as out-of-state consumers may no longer need to cross borders to purchase cannabis from Massachusetts specifically,” she noted.
The report highlighted uneven competition across the state. Western counties face the most crowded marketplace, with Berkshire County reporting 18.9 retailers per 100,000 residents and Hampshire County showing 16.6 per 100,000. Eastern counties had fewer stores, with Norfolk County at just 1.4 retailers and Middlesex at 3.7 per 100,000 residents. The statewide average is 5.1 retailers per 100,000 residents.
While sales continue to grow, the increases have slowed dramatically. Year-over-year sales jumped 537% from 2018 to 2019 but grew only 5% from 2022 to 2023, before ticking up slightly to 7% growth from 2023 to 2024.
Flower remains king in Massachusetts, accounting for 42.2% of all adult-use sales. Other popular products include vape cartridges (18.4%), pre-rolls (15%), and edibles and beverages (14.7%).
The medical cannabis market, included for the first time in this year’s annual report, shows a different trajectory. Since November 2018, medical sales totaled nearly $1.3 billion, with flower representing 46% of transactions. But unlike the adult-use market, medical sales have been declining since 2021.
“I quickly ran the math because the 2024 numbers were just through April…and that would put another decrease,” Commissioner Kimberly Roy said. “So, we’d go from $225 million to about $199 million if we stay on track.”
The state currently has about 100,000 registered medical cannabis patients, with mental and behavioral disorders accounting for 53% of all diagnoses. The commission will host a public listening session on the Medical Use of Marijuana Program today to gather feedback about potential policy changes to increase program access.
The industry workforce has grown more diverse since 2018, according to the report. Between 2019 and 2023, the percentage of female employees increased from 35% to 40%, with representation in senior positions jumping from 17% to 35%.
Racial diversity also improved, with Black employment in general positions increasing from 3.8% to 8.9% and Hispanic/Latino representation growing from 7.1% to 11.5%. At senior levels, Black employees increased from 3.3% to 7.4% and Hispanic/Latino employees from 3.3% to 4.9%.
Massachusetts’ cannabis industry recently hit several milestones, including $1.64 billion in sales in 2024 and the issuance of the 700th business operations notice in September 2024.
Data from a new state report shows 62% price decrease since 2018 with western counties facing heaviest retailer concentration. Read More
