Earlier this month, global cannabinoid market research company BDS Analytics released its October Cannabis Retail Price Index (CPI).
The index hit 100.68 in October, a decrease from the previous month (102.29). Year-to-date, average retail prices of cannabis products have increased by less than one percent.
The index shows a positive price trend in pre-rolled joints, ingestibles, and topicals on a year-over-year basis, while flower, vape and dabbable concentrates experienced continued negative pressure.
Nevertheless, the average retail price for flower, pre-rolled joints, dabbable concentrate, and vape is largely unchanged in comparison to the trailing month—a result of seasonal market conditions. Overall, legal cannabis sales at dispensaries across Arizona, California, Colorado, Oregon, and Nevada reached $584 million, a 17% increase from October 2018.
During October, leading cannabis companies Canopy Growth Corporation (NYSE: CGC) and Aurora Cannabis Inc. (NYSE: ACB) found some stability after weeks of selling with Canopy finding support at the $20 level and Aurora plateauing near $3.60 before falling below $3 in November.
About The CPI
The CPI is designed to illustrate demand shifts, pricing adjustments, and other trends in the cannabis industry for consumers, producers, and investors. Through its GreenEdge Platform, BDS compiles retail transaction pricing data for dispensaries in Arizona, California, Colorado, Nevada, and Oregon, which make up 50% of the United States’ legalized cannabis product sales.
The CPI is relevant in generating supply chain and pricing decisions. In 2018, after persistent declines in flower prices, BDS identified a temporary floor via its CPI. Following, early-to-mid 2019, Flower prices rebounded as concentrate and vape production rose.