ST. LOUIS — Since Missouri’s recreational cannabis market launched in February, its backers have touted lower prices and better availability than other states in the early days of a new market.
But a supply crunch, coupled with higher-than-expected demand and sales, has caused wholesale prices to climb, data from LeafLink shows.
Missouri’s average wholesale prices ranked second highest of the 13 cannabis markets profiled in LeafLink’s 2023 Wholesale Cannabis Pricing Guide, coming in only behind Alaska.
Since launching its adult-use market, Missouri's wholesale prices have only continued to rise, in some cases tripling, according to LeafLink.
The higher prices are putting a squeeze on the profit margins of Missouri cannabis retailers, many of whom are fighting against raising their prices out of fear they'll lose customers to an illicit market, where prices are lower and tax-free.
Other states that experienced similarly high wholesale prices in the early days have since seen their prices stabilize. Missouri is likely to follow suit.
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