Oregon Cannabis Prices Reach Record Lows as Market Oversupply Persists
Oregon cannabis prices have plunged to historic lows amid record harvests, but consumer demand remains solid even as annual sales continue to decline slightly
Key Points
- 1Oregon cannabis sales fell 3.5% in 2025 to $925.5 million, extending a post-pandemic decline
- 2Median retail price per gram dropped to $3.33, the lowest on record for the state
- 3Record harvests in 2025 led to oversupply and intense price compression across the supply chain
- 4Industry experts do not expect prices to rise soon and warn of continued financial pressure on businesses
- 5Oregon's market is more robust than California's, where sales have dropped to a five-year low
Oregon's cannabis market has seen retail prices fall to unprecedented lows due to record-breaking harvests, while consumer demand has remained resilient. According to data from the Oregon Liquor & Cannabis Commission (OLCC), annual cannabis sales in 2025 declined slightly to $925.5 million from $960 million in 2024, continuing a downward trend from the pandemic-era peak of $1.2 billion in 2021. Despite these sales figures, the median price per gram of cannabis flower dropped to just $3.33 in December, compared to $3.52 the previous year, underscoring the intense price compression facing the industry
Industry experts attribute the sales slump not to waning consumer interest but to the ongoing collapse in retail prices driven by overproduction. "I don’t think you’ll see price increases anytime soon," said Portland-based cannabis attorney Vince Sliwoski, in a statement to Oregon Public Broadcasting. "In fact, they may keep coming down." This persistent oversupply has forced businesses across the supply chain to operate under increasingly narrow margins, putting significant financial pressure on growers, processors, and retailers alike
The record outdoor harvest in October 2025 played a key role in this oversupply. Oregon growers produced more than 13 million pounds of cannabis in 2025, up from 12.3 million pounds the year before, marking the largest harvest ever recorded in the state. David Alport, owner of Bridge City Collective retail stores in Portland, highlighted the pandemic's impact, explaining that the industry is still correcting from a temporary surge in consumption. "That’s forced price compression," Alport noted. "It’s forced everybody to lose money across the supply chain."
Market observers point to the abundance of both cannabis supply and retail outlets as central to the ongoing price depression. With too many stores competing for a limited consumer base and a glut of product, the hope is that market forces will eventually restore balance. Comparatively, Oregon's market remains healthier than California's, where a temporary tax hike exacerbated a sales slump, dragging quarterly revenues to their lowest levels since before the COVID-19 pandemic. California retailers reported just under $940 million in cannabis sales in the third quarter of 2025, marking a significant decline from earlier in the year
The regulatory landscape in Oregon has enabled rapid expansion in cultivation and retail licenses, which has contributed to the current oversupply. While consumers benefit from low prices, the long-term viability of many businesses is in question as profit margins diminish. Industry voices are calling for adjustments in licensing or production limits to help stabilize the market and ensure a sustainable future for operators at every level
From the OG Lab newsroom perspective, Oregon's experience serves as a cautionary tale for other emerging cannabis markets. As states expand legal cannabis access, balancing supply and demand will be critical to maintaining healthy prices and industry stability. The ongoing price challenges in Oregon suggest that regulatory intervention or market consolidation may become necessary to prevent further financial strain on cannabis businesses
