Like much of the rest of the U.S. cannabis industry, Massachusetts marijuana executives say they’re expecting a “tough year” in coming months, thanks to increased competition from neighboring states and a broad economic downturn that has customers spending less.
“The whole green rush is over at this point. Everybody knows it,” Matthew Yee, chief operating officer at Enlite Cannabis Dispensary told MassLive.com, who added that the industry is “very crowded.”
Meg Sanders, CEO of the small retail chain Canna Provisions, told the news outlet that 2023 “is going to be a tough year for a lot of us,” referring to Massachusetts’ 275 licensed cannabis retailers. There are also another 156 pending retail applications, MassLive.com reported.
In December, the news outlet noted, The Source dispensary closed its doors and gave its business permit back to the state, the first of potentially many business casualties in Massachusetts marijuana.
Retail cannabis prices have fallen by 21% in Massachusetts last year alone, according to a recent report from analytics firm BDSA. MassLive.com further reported that ounces of cannabis flower are going currently for $228 an ounce, down from $388 a year ago.
The situation doesn’t bode well for either existing or incoming companies.
“It turns into regular retail. Whoever does a better job wins,” Yee told MassLive.com.
H/T: https://www.investorsobserver.com/
