Despite the ongoing Coronavirus Pandemic, the recreational cannabis market in Oregon has been thriving. Demand is up, as more and more new consumers turn to the legal market. Consumers are ditching not only some medications for marijuana, but also turning away from illegal dealers in favor for a local (legal) dispensary.
But without the aid of this pandemic, where would Oregon’s cannabis companies be, in terms of revenue? It is difficult to pinpoint how the market would be, if better at all. Yet, one of Oregon’s state commissions has done some research and uncovered some hard facts.
Demand Has Surged
Certainly, demand has increased very much. But as many may suggest, this demand is not only fueled by local dispensaries selling to retail consumers. Many cannabis cultivators in Oregon are now selling directly to cannabis processors who produce cannabis concentrates. The number of sales from these processors has gone up significantly in Oregon, and from 2017-2020 processors surpassed retailers in sales.
Previously we discussed how Covid-19 is actually allowing the cannabis industry to prosper, as what is mostly the case in Oregon. Studies conducted in Oregon also show some other sources for the increased demand. One of these is that many consumers are now turning away from black market sellers and are slowly favoring legal dispensaries. The studies also show that once a consumer switches to the legal market, they will most likely never switch back to illegal sellers.
The Oregon Liquor Control Commission (OLCC) stated in their report that the amount of cannabis sold in Oregon since 2019 has exceeded 150%! This insanely large increase has shed a spotlight on Oregon. You can read the report for yourself, which we have linked at the bottom of this post.
What This Could Lead To
This extreme rise in demand has left many industry experts wondering if this trend will continue after the pandemic has concluded. Some experts believe not, while most others say it will continue now that there are so many new users in the legal market. Though the optimistic experts do agree that the 150% increase will not hold up, but demand may still increase even if at a lower percentage.
The OLCC believes that after the pandemic, demand may return to pre-covid levels and either flatten or decline. However, the commission also believes that, even with a declining demand, supply will continue to increase. They believe that a drop or flatten in demand and a rise in supply could cause the competition among cannabis producers to force cannabis product prices back down. Regardless, they admit that the Oregon cannabis market has improved over the past two years, even before Covid-19.
What else is up? Pre-roll sales (joints that are already rolled) have surpassed many other cannabis products in 2020. And not only in Oregon, but also in other states where cannabis is already legal. American consumers are starting to love pre-rolls! After all, they are quite convenient and easy for those new to cannabis. Thanks for reading!
Read the OLCC Report: https://www.oregon.gov/olcc/Docs/Legislative_docs/2021-Supply-and-Demand-Report.pdf