While New Jersey’s cannabis market has seen impressive growth, with retail sales reaching nearly $1 billion last year, consumers are grappling with steep prices that are among the highest in the nation. Despite the emergence of numerous dispensaries, cannabis product prices remain significantly higher than those in neighboring states, sparking debate and legislative action seeking to address the issue.
Chris Goldstein, a regional organizer for NORML, conducted a comprehensive survey of nearly 130 online dispensary menus earlier this month. His findings highlight the premium pricing prevalent in both the medical and adult-use cannabis markets in New Jersey. According to a Heady NJ article written by Goldstein, even the lowest price for an ounce of flower still commands a hefty $100-$120, primarily for ground or shake products, often of lower quality. The price disparity becomes even more pronounced for high-quality products, with consumers potentially paying between $45 and $75 for just one eighth of an ounce (3.5 grams).
Despite the influx of dispensaries, the overall selection remains limited, reflecting a long-standing issue of supply shortages that have plagued New Jersey’s cannabis industry for over a decade. Large multi-state operators (MSOs) dominate the market, maintaining high prices even as smaller independent growers start to emerge, noted Goldstein. This situation stands in stark contrast to neighboring Pennsylvania, where medical cannabis prices have significantly declined, highlighting the conspicuousness of New Jersey’s high prices.
New York’s cannabis market also faces challenges with high prices due to supply shortages exacerbated by grower cutbacks and regulatory hurdles. However, unlike New Jersey, New York has implemented home cultivation rules allowing adults to grow up to six plants, potentially mitigating the strain on the market. Additionally, the expansion of delivery services is seen as a potential game changer for both states. New Jersey is poised to extend cannabis delivery to recreational users, potentially increasing accessibility and convenience, similar to ordering a pizza.
To address the consumer concerns surrounding high prices, a current legislative bill in both the New Jersey Senate and Assembly could potentially lead to price caps being implemented by the New Jersey Cannabis Regulatory Commission (NJCRC) to protect consumers and foster a competitive legal marketplace. State Senator Troy Singleton (D) has also introduced legislation aimed at introducing price caps and allowing medical patients to grow their own cannabis.
The upcoming legislative sessions and market responses will be crucial for the many local consumers who are still waiting for fair pricing and access to quality cannabis in New Jersey.
