Oregon’s marijuana glut leads to lowest prices ever, regulator says

Marijuana prices in Oregon have dropped to their lowest levels ever because of the oversupply resulting from last year’s record-breaking harvest.

Nearly 12.3 million pounds of marijuana was harvested in the state in 2024, but demand for cannabis products is flat at $960 million – about the same as in 2023.

That’s according to the “2025 Recreational Marijuana Supply and Demand Legislative Report” issued by the state’s regulator, the Oregon Liquor and Cannabis Commission (OLCC).

The median retail price per gram of flower declined to $3.75 because the amount of product available is double what people are purchasing, the agency reported.

Although Oregon regulators in 2019 issued a moratorium on new licenses for cultivators and retailers and extended it last year, the industry has continued to grow too much product.

If federal legalization occurs, it likely would permit interstate commerce, which would open new markets by enabling Oregon producers to sell products across state lines.

Most experts don’t believe federal legalization will happen under the Trump administration, but the marijuana rescheduling process started by then-President Joe Biden could lead to interstate commerce.

Cannabis consultant Beau Whitney, founder of Portland-based Whitney Economics, said Oregon is failing the industry and should impose limits on the supply of marijuana entering the market.

“State reform has to take place,” Whitney told Axios Portland.

Marijuana businesses are taking two approaches to dealing with the oversupply, according to Portland-based cannabis attorney Vince Sliwoski.

Some producers might ignore interstate commerce laws and recoup their costs by selling their marijuana out of state.

Others are exiting the industry and selling their licenses.

“The industry is kind of limping along and will continue to,” Sliwoski told Axios.