In Part 1 of this series, we compared and contrasted registered medical cannabis patient’s price per gram for dry flower before and after adult-use legalization, as well as adult-use and medical prices. In Part II, we do the same for the price per gram for Extracts in Illinois.
Out of all the cannabis products in Illinois, medical cannabis Extracts have had the most volatile variances for price per gram. According to statistics from the Cannabis Regulation Oversight Office (CROO), extract price per gram started with a boom at $82.85 in March 2016 and, before adult-use legalization, topped out at $83.14 May 2016. Price per gram for extracts dropped to its lowest watermark at $52.82 April 2018.
From there, price per gram hovered in the low $60-range, until again, Gov. J.B. Pritzker signed into law the Cannabis Regulation and Tax Act on June 25, 2019, and cultivators ramped up production for adult-use sales. Price per gram jumped to $75.12 in August 2019, the highest since fall of 2016. After the first month of adult-use legalization, January 2020, medical price per gram for extracts skyrocketed to its peak at $89.04 in March 2020.
Since its peak of $89.04, the price per gram of extracts has slowly decreased and as of July 2023 was $63.89. This 28.2% price per gram decrease still left the most recent price more expensive than during 2017-2018, after the medical cannabis market stabilized from the boost of early sales.
In contrast, the adult-use price per gram (with taxes) has slowly decreased from its March 2020 peak of $124.99 to the current price of $71.25 (July 2023), nearly a 43% decrease. If the adult-use extract trend line continues, price per gram would not reach $40 per gram (with taxes) for almost another year. If the medical-extract trend line continues, price per gram would hover around $50 (without taxes).
As reference, Illinois implemented the Compassionate Use of Medical Cannabis Pilot Program Act January 2014. On June 25, 2019, Gov. J.B. Pritzker signed into law the Cannabis Regulation and Tax Act. August 12, 2019, Illinois expanded the medical cannabis program to include an additional 11 conditions and changed the Act from a pilot program to a permanent program. January 2020, Illinois implemented the Cannabis Regulation and Tax Act that legalized recreational cannabis use.
Stay tuned for Part 3 of this series in which we compare and contrast prices per gram for edibles, RSOs, and infused drinks. In Part I, a compare and contrast of dry flower, can be found here.
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