The cost of an ounce of weed has evolved significantly, moving beyond simple considerations like seeds versus no seeds. Today’s cannabis market is influenced by factors such as potency, flavor, effects, and specific strain preferences. Increased competition in legal markets has also driven prices downward. So, what can you expect to pay for an ounce of cannabis flower in 2024? The answer is more complex than you might think.
The average retail price for an ounce of cannabis varies widely depending on location. Prices range from $74 in California to $257 in Illinois, and even exceeding $300 in states like New Jersey and Connecticut. These price differences are influenced by market maturity, geography, and each state’s unique licensing structure.
Cannabis Price Trends in Established Markets
Let’s examine price trends in several adult-use markets over the past five years. These trends highlight how market dynamics impact the cost of cannabis:
While quality often correlates with price, the cannabis industry, due to federal prohibition and restrictions on interstate commerce, operates differently. In 2020, few would argue that Michigan’s $419 ounces were superior to California’s $110 ounces.
Between 2020 and 2024, Michigan saw an 80% decrease in its average retail price for cannabis flower, dropping to $83.71 per ounce, according to the state’s Cannabis Regulatory Agency (CRA). This price decline is largely attributed to increased demand, production, and a rise in the number of dispensaries.
In late 2021, Michigan’s adult-use market featured 577 active grower licenses, 107 processors, and 432 dispensaries selling 21,500 pounds of flower monthly, with 38,000 pounds in retail inventory, according to the CRA.
Today, Michigan’s market boasts 1,036 active grower licenses, 285 processors, and 843 dispensaries, selling 103,000 pounds of flower in November alone, with 146,400 pounds in retail inventory.
Amidst these market dynamics, Michigan’s average price of $83.71 for an ounce of flower in 2024 is lower than more mature markets like Massachusetts ($144.53), Oregon ($106.62), and Colorado ($96.1), based on data from regulatory agencies.
In contrast, Illinois, which launched adult-use sales in January 2020, maintains a higher average flower price of $257.22 per ounce. This is a 43% decrease from 2020, when the average ounce cost $452.41, according to the state’s Cannabis Regulation Oversight Office (CROO).
Illinois has a less competitive retail environment compared to Michigan, with only 242 adult-use dispensaries and a more complex tax structure, including a 7% excise tax at wholesale and tiered excise taxes at retail (10% on products with less than 35% THC, 25% on products with more than 35% THC, and 20% on infused products).
This translates to approximately 8.4 dispensaries per 100,000 people in Michigan, compared to fewer than 2 per 100,000 in Illinois, affecting competitive pricing among operators.
Among the seven adult-use states examined, each experienced record low flower prices in 2024. However, the rate of price declines has slowed.
Cannabis Prices in Emerging Markets
Newer markets often start with higher prices as cultivators catch up with demand. Ten of the 24 adult-use states in the U.S. began dispensary sales since 2022, with Minnesota and Delaware planning retail launches in 2025.
Here’s a snapshot of prices in four newer adult-use markets in 2024:
Ohio’s average retail flower price of $231.07 in 2024 may seem low because it includes both adult-use and medical sales, according to the state’s Division of Cannabis Control (DCC). The medical market still represents one-third of all cannabis sales four months after the state’s adult-use launch on August 6.
Since then, Ohio’s average flower price has dropped nearly 21%, from about $266 to $210 per ounce, according to the DCC. As more of the 170 additional dispensary licenses are awarded to existing medical operators, resulting in new retail locations, prices in Ohio are expected to continue to decline.
Additionally, Ohio residents near the Michigan border can purchase adult-use cannabis for significantly less. Michigan’s average flower prices hit an all-time low of $71.80 per ounce in November, according to the CRA.
This competition from Michigan likely contributes to Ohio’s lower flower prices compared to Maryland, New Jersey, and Connecticut, which compete primarily with Massachusetts, a state with average retail flower prices roughly double that of Michigan.
The Bottom Line on Weed Prices
The cost of an ounce of weed in 2024 varies greatly depending on the state and market dynamics. Mature markets with high competition tend to have lower prices, while newer markets and those with restrictive licensing structures may see higher costs. Keep these factors in mind when purchasing cannabis, and always prioritize legal and regulated sources.
