PORTLAND, Ore. (KOIN) – Marijuana sales have remained strong in Oregon during the pandemic, but that could change as things return to normal, the Oregon Office of Economic Analysis said in its latest Marijuana Outlook.
Josh Lehner, an economist with the state of Oregon, published the report Wednesday. In it, he said the baseline outlook has called for marijuana sales to slow as Oregonians return to their pre-COVID lives.
As more people go back to the office and other entertainment options open, there’s increased competition for people’s time and money, which could result in less spending on marijuana.
Already in recent months, sales have slowed in Oregon and in other recreational marijuana states like Colorado and Washington.
However, in the medium- and long-term, economists expect sales in Oregon will gradually increase as the state’s population, income level and spending grow. Things like the broader social acceptance of marijuana will likely also play a role in sales in the years ahead.
“Marijuana sales are expected to remain a steady share of income and spending,” the outlook report states.
According to the latest National Survey on Drug Use and Health, the share of Oregonians using marijuana in the past month, continues to hold steady at about 20 percent of the adult population. Among other states with legalized recreational marijuana, Oregon ranks third highest in the nation for its number of regular users, behind Vermont and Colorado. Washington ranks fourth.
While inflation has been a concern for many goods, data from the Oregon Liquor and Cannabis Commission shows retail prices for both usable marijuana and extracts and concentrates have fallen 5-10% since summer 2021.
The Oregon Office of Economic Analysis suspects the price declines could be in part due to another record marijuana harvest in the fall. It was up about 40% from the previous year.
Lehner’s report said the decline in prices is impacting overall tax revenues in the state.
Even if Oregonians are still buying the same volume of marijuana product, if the prices are lower, then it will impact tax collections.