Oregon’s Cannabis Market Struggles as Oversupply Crashes Prices

3 February 2025

Oregon’s cannabis industry is experiencing one of its most challenging years due to a massive supply surplus that has driven prices to record lows. According to a new report from the Oregon Liquor and Cannabis Commission (OLCC), the state’s cannabis growers produced 12.3 million pounds in 2024—a 28% increase from the previous year—while consumer demand remained stagnant at $960 million in total sales. As a result, the median retail price per gram of cannabis flower has dropped to $3.75, its lowest point since Oregon legalized recreational marijuana nearly a decade ago.

This oversupply issue has plagued Oregon’s market for years, despite the state's efforts to curb new production by implementing licensing moratoriums. The continued imbalance has left many industry players struggling, with some opting to exit the business entirely. With federal legalization still out of reach and interstate commerce restrictions in place, experts say Oregon's cannabis industry will remain under financial strain for the foreseeable future.