Wholesale prices in maturing U.S. adult-use cannabis markets keep declining, with the Average Market Rate (AMR) in Colorado falling to $1,012, half that of 2014’s market launch.
AMR, which sets growers’ excise tax liability, varies across markets: In Nevada, the average flower rate is $2,268, more than 2x that of Colorado’s, while other markets see flower rates priced between $700 and $900 per pound (and falling).
Variability in average wholesale prices reflects different states’ regulatory structures and the respective stage of each market’s maturation.
Such sustained pressures keep fueling three key trends: investment in innovation, operational reorganization to optimize efficiency, and acquisition and consolidation.
