Big Business Is Pushing Its Weight Around In The Cannabis Industry If The Price Per Pound Of Marijuana Continues To Fall, It Could Be Great News For Consumers, But It Would Be Horrific News For Marijuana Businesses And Potentially Even The State Governments That Pushed For The Legalization Of Recreational Cannabis.

Growers are flooding the market with cannabis at a faster rate than consumers can buy it, despite growth in the demand side, causing prices to plunge. But it’s not Medical marijuana the existing businesses that have created this mess. Instead, Douglas Brown of Contact High Communications noted in his interview with Forbes that new, larger entrants into the growing side of the equation are responsible for flooding the market with pot. Pro-legalization enthusiasts have often shunned the idea of allowing big business into the marijuana industry for fear that small businesses would be squeezed out. It would appear that’s exactly what’s happening to the few states where recreational weed is legal. Big business is pushing its weight around in the cannabis industry If the price per pound of marijuana continues to fall, it could be great news for consumers, but it would be horrific news for marijuana businesses and potentially even the state governments that pushed for the legalization of recreational cannabis. At $1,000 per wholesale pound, as reported by, marijuana businesses are already seeing their margins pinched. The only two solutions in response to lower wholesale prices are to try to cut costs with advanced new growing technologies, which often mean an initial investment before cost savings are recognized, or to win the volume game. Many of these larger players have chosen the latter by flooding the market with pot and piling on the profits even with lower margins.

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