One of the factors driving pricing compression in cannabis markets in the US is an increase in average retail discounting. This graph shows the average discount in US cannabis markets in October 2021 and October 2022. It also shows the relative change in average discounts over that time frame. We can see that over the past 12 months, the average discount has increased in all markets, but there are some drastic differences between states.
While it has the lowest discounts of any state by far, Massachusetts had the largest relative increase of 91%, rising from 1.7% to 3.3% over the past year. With average discounts rising from 9.2% to 16.8%, Illinois also had a remarkable year over year increase of 84%.
On the other end of the spectrum, Oregon had the smallest lift in discounts at only 9%. Michigan, which saw a dramatic increase in discounts from 2020 to 2021, had a much slower increase over the past year, only rising by 14%.