The legal marijuana industry in Ohio is already seeing price drops across multiple product categories, just five months into its adult-use sales. While demand continues to rise, the market is experiencing a shift that industry watchers say could shape its long-term trajectory.
Sales Boom, But Prices Slide
Ohio’s recreational marijuana market has quickly taken off, surpassing $242.2 million in total sales since launching on August 6, 2024. The numbers have been strong, aligning with expectations for a state with significant consumer interest.
However, despite the booming sales, the price per item is showing signs of contraction. Weekly data from the Ohio Division of Cannabis Control (DCC) reveals that prices for most product categories have dipped, with more than half of them experiencing double-digit percentage declines.
Plant Material Sales Surge as Prices Drop
Plant material, the most popular cannabis product in Ohio, makes up 52% of all adult-use sales. And it’s moving fast.
- In the first week of January 2025, consumers purchased 2,158 pounds of plant material, a sharp increase from the 1,284 pounds sold in the first week after the market opened in August.
- At the same time, the price per pound has fallen by 32%, dropping from its initial rate by $1,500 to settle at $3,178 per pound in early January.
The lower price is likely driving the increased sales volume, as consumers take advantage of the more affordable rates.
Price Drops Across Product Categories
Ohio’s cannabis market isn’t just seeing a drop in raw plant material prices. The price per gram, manufactured products, and specific items like edibles and vapes have also declined since the market’s opening.
- The average price per gram fell 27.6%, from $9.40 in August to $6.80 in mid-January.
- Manufactured cannabis product prices have been more stable, decreasing by 9.6%, with an average price of $28.08 per item in January.
- Edible prices declined 17.1%, while oils/solids for vapes saw an 11% price drop.
This suggests that while demand is growing, competitive pricing and increased supply may be pushing prices downward.
Shifting Product Preferences Among Consumers
Beyond price fluctuations, the Ohio cannabis market is undergoing a shift in the types of products consumers prefer.
Initially, sales of edibles, tinctures, and ointments were strong, but they’ve since seen a contraction. Meanwhile, oil/solid products for vapes have gained traction, following the trend seen in many other legal markets.
- Plant material and vape products have seen double-digit sales growth since the recreational market opened.
- Consumers are leaning toward products that provide faster effects, such as vapes, instead of slower-acting edibles or topical applications.
This evolution in consumer habits is expected to continue as the market matures, with product demand shifting based on pricing, availability, and trends seen in other states.
What’s Next for Ohio’s Marijuana Market?
If history is any indicator, Ohio’s cannabis market is still in its early stages of development. Other states with legal marijuana programs have experienced similar patterns—high demand leading to increased production, followed by price adjustments as supply stabilizes.
- The downward pricing trend might continue in the short term as businesses work to establish themselves in a competitive market.
- Consumer demand is expected to grow through 2025, even as prices fluctuate.
- The product mix may continue to change, with potential shifts toward more concentrated cannabis products like vapes and extracts.
With millions in sales and an evolving product landscape, Ohio’s marijuana industry is shaping up to be a critical market to watch in the coming year.