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%.
Track cannabis sales and market performance
Key metrics defined
These six key metrics from the previous month will provide you with a pulse check on legal cannabis markets. Below, you'll find data on year over year growth, basket size, and more.
Total monthly sales for the previously completed month.
YoY Sales Growth.
Year over year growth of sales (For example, November 2022 compared to November 2021).
Avg Item Price
The average price of a cannabis item in the most recently completed month.
Avg Basket Size
The average size (in sales $) of a retail basket in the most recently completed month.
Median Store SKU Counts
The number of distinct SKUs sold in the median store in the most recently completed month. Median was used instead of an average to remove the effects of outlier stores.
Median store Like-Store-Sales-Growth MoM - The month over month growth in sales for the median sample store (for example, January 2022 vs. December 2021). “Like stores” are filtered to exclude any newly opened stores or recently disconnected stores.