• Home
  • News
  • California’s Cannabis Market Experiences A Massive Shift In Supply and Demand

California’s Cannabis Market Experiences A Massive Shift In Supply and Demand

Pot farmers see overwhelming price fluctuations in regards to their flowers and lack of distribution.

Photo by Bob Berg / Getty Images

After last summer’s cannabis drought left California dispensaries upping their prices, we’re now seeking a considerable shift in cost as supply continues to exceed demand.

Three years after the state commenced legalizing marijuana, California has now managed to allot far more farms than retail stores. The California Department of Cannabis Control stated that there are 7,297 active cannabis farm licenses as of August 30th, 2021. On the other hand, the department also reported 1,130 retail stores and delivery licenses.

Due to the Covid-19 pandemic, there was a surge in demand and a severe supply shortage, which led cannabis farmers to increase growth to match consumer habits. Now distributors are witnessing a bounty of flowers thanks to the successful 2020 harvest, yet are worried if it will compensate farmers due to decreased demand.

A Guide To Buying Wax Cartridges

Read More

Photo by Adobe

Chief of Government & Consumer Affairs Tiffany Devitt of distributor/manufacturer Cannacraft mentioned that the cannabis market is severely “unstable,” leading to the “devastating” and shocking shifts in price.

“So even as the state has made good faith efforts to fix retail licensing, new licensees are just entering the same markets, slicing the market share pie there ever thinner, rather than expanding overall markets.

More flower going into the same size market is driving prices down, and that’s devastating California’s cannabis industry,” said Devitt.

September 13, 2021 — Last Updated September 22, 2021
Written by Herb
Save for later
Start saving articles by clicking the heart icon and you'll find them again in your profile page.
Sign up for our newsletter

Weed, Delivered.

Get 20% off premium weed and discover the latest products, news, and deals in cannabis.
September 13, 2021 — Last Updated September 22, 2021
Written by Herb
Save for later
Start saving articles by clicking the heart icon and you'll find them again in your profile page.

Jump To Section

    Sign up for our newsletter

    Weed, Delivered.

    Get 20% off premium weed and discover the latest products, news, and deals in cannabis.

    Articles for You

    How Much Does A Wax Cartridge Cost?

    How to understand the price points for wax cartridges. Created with TOQi.

    Read More

    Stay up to date

    Get the latest in cannabis straight to your inbox.
    Cannabis For You, Near You

    Discover

    Made in Los Angeles and Toronto