Oregon Archives - Green Market Report

Debra BorchardtJanuary 22, 2020
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With all the attention heaped upon new legal states like Illinois and Michigan, it’s easy to forget about the OG Oregon. The Bulletin reported earlier this week that Oregon’s cannabis sales continue to climb higher. The Oregon Liquor Control Commission reported that sales for 2019 totaled $793 million, which was $150 million more than in 2018.

According to the article, the sales generated more than $110 million in tax revenues. These sales are also expected to reach one billion dollars for 2020.

The top five counties in terms of legal, recreational cannabis sales to consumers were:

Multnomah $203.9 million

Washington $75.3 million

Lane           $70 million

Marion        $50.6 million

Deschutes   $39.6 million

Source: Oregon Liquor Control Commission

The Border Effect

Multnomah County is home to Portland, which explains why its sales were so much greater than other counties. The article also noted that the smaller counties of Baker and Malheur were growing quickly due to their proximity to the state of Idaho, which has not legalized recreational marijuana.

The Oregon Economic Analysis wrote, “Obviously recreational marijuana is not legal in Idaho, but even after throwing the data into a rough border tax model that accounts for incomes, number of retailers, tax rates and the like, there remains a huge border effect. Roughly speaking, about 75% of Oregon sales and more like 35% of Washington sales in counties along the Idaho border appear due to the border effect itself and not local socio-economic conditions. Furthermore, and in things you cannot make up, Oregon sales per adult along the Idaho border are 420% the statewide average.”

This analysis also points to increased sales along the Washington state line. Even though Washington has legalized recreational sales, there are more stores in Oregon and the taxes are lower. The report wrote, “Finally, the last finding decomposes the differences in sales seen along the Oregon-Washington border itself. Overall sales are 16% higher per capita on this side of the Columbia than the other. This speaks to product availability and the final price to consumers being key driving factors in consumer spending patterns, which create much of the border effect.”

The analysis also stated, “Both Oregon and Washington see a clear impact in higher recreational marijuana sales along the Idaho border than can be explained by local socio-economic factors. Now, this does not mean that all of those larger sales are necessarily to Idahoans. It could be other customers may be traveling from further away or from elsewhere within our state who are traveling through.

All told, recreational marijuana sales continue to increase and are expected to do so in the decade ahead. Our office’s forecast calls for sales to grow approximately 80% over this time period as incomes grow, the state’s population increases, and marijuana becomes more socially acceptable and usage rates rise.”

Vape Sales Drop

According to BDS Analytics data cited by Canaccord Genuity in its December report, Oregon’s vape sales declined by 12% year-over-year, while other categories experienced growth. Flower sales rose to 45% versus 39% last year. Pre-rolls grew from 7% to 9% YOY and non-vape concentrates grew from 9% to 11% YOY.


William SumnerDecember 12, 2018
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Earlier this week, the cannabis technology platform LeafLink released its 2018 Wholesale Cannabis Pricing Guide and the company learned that Alaska and Maryland are the two most expensive states to buy legal cannabis, followed by Nevada and California.

Examining the wholesale landscape of some of the most mature cannabis markets in the United States, the guide looks at the average wholesale price of cannabis in eight states: Alaska, Arizona, California, Colorado, Maryland, Nevada, Oregon, and Washington. The product types covered by the report include concentrates, cartridges, edibles, flower, and pre-rolls.

Although the report does not dive into the specifics of why one state is more expensive than another, the authors speculate that the Alaska and Maryland’s high prices are due to the states having a low number of cannabis cultivators. In the two states where cannabis is cheapest, Washington and Oregon, there is currently a glut of cannabis cultivators; leading to low prices and oversupply.

“As the standard wholesale marketplace for the industry’s leading brands, we are able to provide crucial market information to cannabis retailers and brands, which will help inform their plans for 2019,” said LeafLink Co-Founder and CEO Ryan G. Smith in a statement. “As more states like Massachusetts, Connecticut, Pennsylvania, and Michigan continue to establish wholesale operations, we will be able to provide a larger scope of market activity to further empower the LeafLink community, as well as the industry at large.”

Nationwide, the average price for a pound of cannabis flower is $2,124 per pound, while a gram of pre-rolls costs around $5.66 per gram. The average price for cannabis concentrates costs approximately $26.07 per gram and cartridges are priced at around $39.55 per gram. Edible cannabis products, on average, cost around $0.20 per milligram.

When taken on a state-by-state level, cannabis prices start to vary. With regards to cannabis consumer preferences, the report found that consumers prefer products in the lowest 25% price range. The exception to this was pre-rolls. On average, consumers preferred pre-roll products in the 25%-49.99% price range.

The report also examined the relationship between pricing and discounted sales. On average, approximately 16% of the products sold through LeafLink’s platform have a discounted price. Across all eight states examined, discounted products generated 3% more sales than regularly priced products.

The discount effect is magnified when combined with larger sales campaigns. During the last year, LeafLink ran two sales promotions, one in the month leading up to 4/20 (dubbed 3/20) and one in July called 7/10; which is a considered an industry-wide “holiday” for concentrates.

When combined with those larger sales campaigns, discounted products generated 37% more sales on 3/20 and 38% more sales on 7/10. This seems to suggest that cannabis retailers stand to significantly boost their sales numbers by combining sales promotions with discounted cannabis products.


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