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Writer's pictureJason Beck

Cannabis industry no longer riding high: Job losses, supply imbalances, dwindling profits hit sector

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By Tom Howell Jr. - The Washington Times - Wednesday, September 6, 2023


Western states such as California and Oregon are overflowing with cannabis, a supply glut that is driving down prices and sparking pleas for federal permission to sell marijuana across state lines.

Pot users in New Jersey are facing the inverse, with consumers confronting high prices as trade groups accuse the state of slow-walking licenses that could increase the number of cannabis operators supplying the legal market. A trade group said Colorado had its worst April sales period in five years, a month associated with big cannabis sales. The legal pot industry is experiencing growing pains from coast to coast, after a decade of rapid growth fueled by legalization in nearly two dozen states.

Industry representatives point to general stressors in the economy, including inflation and soaring interest rates. Venture funding is down, and demand for marijuana eased after a pandemic-fueled surge among people trapped at home.

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