The Oregon Cannabis Market is currently facing significant challenges, marked by record production levels juxtaposed with stagnant demand and plummeting prices, creating a complex environment for industry participants.
Oregon’s cannabis industry is grappling with historic price lows. Record production levels are clashing with stagnant consumer demand. This has led to a significant drop in prices for cannabis flower. The state’s retail cannabis market has seen prices under $4 per gram for two years. In December 2025, the median price per gram hit $3.33. This marks an all-time low within the Oregon Cannabis Market.
Oregon Cannabis Market: Production Surges to New Heights
Oregon growers achieved a record harvest in 2025. They produced over 13 million pounds of cannabis. This is a substantial increase from the previous year’s 12.3 million pounds. Ideal growing conditions in Southern Oregon contributed to this surge. This massive harvest is a primary driver of the current price depression within the Oregon Cannabis Market, contributing to the ongoing oregon cannabis crisis.
Demand Remains Steady, But Sales Decline in the Oregon Cannabis Market
Despite record production, overall sales in Oregon declined. In 2025, total oregon cannabis sales dropped by 3.5%. This brought the annual total to $925 million. This is down from $960 million in 2024 and a peak of $1.2 billion in 2021. Analysts note that consumer demand has remained remarkably steady. Oregon’s established cannabis culture and consistent recreational base support this. However, increased competition and oversupply mean consumers benefit from lower oregon cannabis prices, not increased purchasing volume. Many believe the pandemic-fueled sales surge was unsustainable, contributing to stagnant cannabis demand.
Industry Faces Economic Pressure in the Oregon Cannabis Market
The price compression significantly impacts Oregon’s cannabis businesses. Cultivators and retailers face declining revenue per unit. Many businesses operate at a loss. This forces them to innovate and control costs. Some producers may illegally sell surplus cannabis out of state to recoup losses. Experts predict low prices will persist through 2026 due to continued oversupply. The cannabis market correction is evident, with the cannabis industry economics showing strain.
Federal Rescheduling Hopes for the Oregon Cannabis Market
Ongoing federal efforts to reschedule marijuana offer a potential glimmer of hope. If successful, this could impact interstate commerce. It might allow Oregon producers to sell products in other states. However, Republican opposition may hinder broader reform momentum. Any federal changes may not immediately affect the 2026 tax year for the Oregon Cannabis Market.
Future Outlook for the Oregon Cannabis Market
Oregon’s cannabis market remains one of the nation’s most established. Despite current challenges, per-capita spending is high. New regulations allow sampling and wholesale sales at trade shows starting in 2026. This could help businesses grow and compete. The industry hopes to weather these tough economic times and navigate the cannabis market challenges.
