Cannabis Prices Keep Falling. New Global Report Says That Was Always Going To Happen
The core argument is a reframe
Cannabis prices have been falling for years. In mature U.S. markets, flower prices have collapsed. In Canada, licensed producers destroyed more than 425 million grams of excess inventory in a single year. In Germany, import volumes have grown nearly 45-fold since 2018 and prices have fallen roughly 25% in two and a half years, according to a new report from Whitney Economics and the Global Cannabis Network Collective. The industry has treated each of these episodes as a crisis. A new global analysis argues they were never anything other than inevitable.
The report, “What You Need to Know: Pricing Compression and Its Impact on International Cannabis Markets,” was published this month by GCNC, a membership organization connecting cannabis operators and investors worldwide, in partnership with Whitney Economics, a cannabis economics research and consulting firm. It draws on market data from the U.S., Canada and Germany, operator perspectives from Israel, Mexico and Peru, and a predictive modelling framework the firm adapted from logistics economics to forecast how pricing behaves at each stage of market development.
The core argument is a reframe. Falling prices in cannabis are not a symptom of industry failure: they are, according to the report, a predictable phase of market maturation that regulators and operators consistently underweight when it matters most — at the beginning, before the damage is done.
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