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Why is Connecticut Cannabis So Expensive?

Connecticut cannabis

By T-Town Terps

It’s a little frustrated being a medical cannabis patient or legal-market consumer in the state of Connecticut. That’s because despite the state’s legalization and sale of cannabis, the program did not license enough growers to ensure a steady supply. Cannabis, like any commodity, is subject to the laws and supply and demand. When Connecticut was just selling medical cannabis, demand was manageable, but with the sales of adult-use, recreational cannabis starting last year, producers have been unable to keep up. The result has been inconsistent products, shortages, and all-around discouraging prices.

Cannabis Supply in Connecticut

Connecticut’s cannabis production has largely been dominated by four players: Curaleaf, CTPharma, AGI, and Theraplant. While the addition of micro-cultivators and producers like Affinity and Soundview have been welcomed to our local market, they are unable to produce enough product to compete with the big four.

While the state intended to have more producers online by now, the process for licensure, zoning, development, and getting product to market has proven much more difficult and lengthier than regulators anticipated. There are a number of new growers poised to break into Connecticut’s market, but the timetable is considerable. Sadly, it doesn’t look like Connecticut cannabis users are going to get a break anytime soon.

Why the Price of Cannabis Matters

High prices not only deter sales, but they also bolster illegal black and grey market sales while driving legal sales to other states. The state’s failure to make the local market attractive to consumers has resulted in millions of dollars in lost sales.

At the same time, it’s important not to over-correct. Other states have done exactly that, responding to supply shortages by licensing too many growers and creating a glut or over-saturation in the market. This leads prices to crash to the point where growers lose money, and retailers struggle to maintain their margins. Then businesses shutter.

So, it is encouraging to see more growers in the pipeline. I just hope the state doesn’t overdo it.

Medical Cannabis Patients and Products

One of the most concerning results of Connecticut’s cannabis supply issues has been the lack of product availability for medical patients coupled with prices that are simply unmanageable for many.

When Connecticut began legal adult-use sales, medical patients noticed almost immediate changes to their product availability. It made sense: suddenly there was a demand for flower for an entire new market of consumers. That meant less product to turn into concentrates, which many medical patients require.

Now, it has come to my attention that many medical cannabis patients are driving to Massachusetts or even Maine to purchase products, which is losing situation for our state’s program.  

Recreational Cannabis Customers and Connecticut’s Black Market

While stats are hard to compile, anyone who smokes knows that Connecticut’s black market cannabis sales still dwarf legal sales. The black market is convenient, familiar, and affordable for most cannabis users. Getting these folks to buy from a licensed dispensary was always going to be a challenge because human behavior doesn’t love change. But the price disparity makes it an impossible ask for many.

So, what are the consequences? With an entrenched black market, legal cannabis sales will always struggle. Legacy growers and black-market producers don’t need to worry about testing, regulatory packaging, labor practices, safety protocols, etc. They can produce cannabis cheaper and undercut the legal market.

But where is the quality standard? And how do you know what’s in it? Pesticides, mold, and growth accelerants are commonly found in black market cannabis. So, there is a public health imperative to get more cannabis users to buy from licensed retailers.

Connecticut Cannabis Must Compete with Neighboring States

Massachusetts, Maine, and now New York all present competing cannabis markets for Connecticut. As it is, Massachusetts and Maine attract Connecticut residences by directly marketing to them and advertising their selection and prices. Soon, New York will be able to do so as well.

Connecticut’s biggest problem is it was late to legalize, and when it did, it didn’t properly recognize how neighboring markets would affect the state program. We are losing a ton of money over the border, which is money funding Massachusetts schools and communities over our own. While it would be nice to think that social conscious would motivate some to shop locally, most Connecticut cannabis consumers simply can’t afford the state’s prices.

When Will Connecticut Cannabis Be Competitively Priced?

Unfortunately, things in this industry will not change quickly. As I mentioned, new growers take a long time to get online. It is probably going to be at least 2 years before we see any real competition between producers in the state. In the meantime, all we can do is bargain hunt, stock our loyalty points, and wait for better days.

Still River Wellness | Medical & Adult-use Cannabis Dispensary

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