Coming off our trips to Missouri and Ohio, we’re still spending a lot of time looking at Midwest market data.
The Midwest adult use states are an interesting mix of mature and growth markets. Some states like Illinois and Michigan have had robust medical and recreational markets for years while Missouri and and Ohio are newer entrants to the adult use market. Lit Alerts data shows significant variation in pricing across the states for common flower package sizes. NOTE: For the sake of this comparison we have grouped Ohio’s “tenths” with the more common “eighths” and Ohio’s “fifths” with the more common “quarter”.
The “eighth” (or “tenth” in Ohio) is the most common flower package size and Illinois has held the highest average price point for some time now. Illinois prices are holding the strongest across the board.
Missouri and Ohio are tracking almost identically for the most common package sizes however this is misleading. Ohio’s “tenths” and “fifths” are more expensive on a per gram basis. For example Ohio’s “Tenth” (2.83g) costs consumers $12.11 per gram while Missouri’s “Eighth” (3.5g) costs consumers $9.77 per gram. We see this play out at the higher volume package sizes as the actual price points start to deviate much more, with Ohio holding much higher price points.
Michigan consistently offers the lowest prices across all product sizes. The massive price compression that has taken place over the past few years is on full display as a full ounce is listed on average at $110.16, while an eighth is only $23.05.
The disparity is most pronounced for 1 oz products where Ohio holds the top spot clocking in at over $200 while all others fall well below the $200 mark.
As these markets continue to mature, we’ll be watching how further price compression, increased taxes in Michigan, and Ohio’s recreational expansion will affect these prices for consumers.
Originally published in the Cultivated Media daily newsletter.
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