california
cannabis prices

Retail Cannabis Pricing 

As of early 2025, California’s cannabis retail market continues to experience price fluctuations influenced by supply dynamics, consumer demand, and regulatory factors.

Retail Cannabis Pricing Snapshot

• Average Price per Ounce: Approximately $74, reflecting a significant decrease from previous years.

• Average Item Price: In March 2025, the average item price was $19.21, down from $20.61 the previous year.

• Flower Category: Average item price for flower was $28.78, with a year-over-year sales decline of 16.1%.

• Premium Products: High-quality, small-batch, and organic cannabis products maintain higher price points, often exceeding $300 per ounce, catering to consumers seeking artisanal experiences.

Wholesale Market Trends

• Average Wholesale Price: Approximately $1,200 per pound, down from over $2,000 during the pandemic peak. 

• Indoor vs. Outdoor Pricing: Indoor-grown cannabis commands higher prices due to quality and production costs, with indoor prices averaging 2.2 times higher than outdoor prices. 

• Market Stabilization: After significant declines, wholesale prices are showing signs of stabilization, with a 5.9% per pound increase noted in recent reports.

Outlook for 2025 and Beyond

Looking ahead, California’s cannabis market is expected to continue evolving:

• Price Stabilization: As the market matures, prices are anticipated to stabilize, balancing supply and demand.

• Regulatory Adjustments: Potential tax reforms and regulatory changes could impact pricing structures.

• Market Consolidation: Ongoing consolidation may lead to more efficient operations and influence pricing strategies.

For businesses and consumers navigating California’s cannabis market, staying informed about pricing trends is crucial. Understanding the factors influencing prices can aid in making strategic decisions, whether purchasing, investing, or operating within the industry.