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BDS Analytics' September 2019 Cannabis Price Index (CPI) Points To Seasonal Decline

Renato Capelj

Earlier this month, global cannabinoid market research company BDS Analytics released its September Cannabis Retail Price Index (CPI).

The index hit 102.29 in September, a decrease from both the previous month (104.01) and this time last year (104.28). Year-to-date, the average retail prices of cannabis products has fallen -1.3%.

The Results

Despite the overall price decline, the index trended positively for pre-rolled joints, ingestibles, and topicals on a month-over-month basis. However, negative price trends in flower, vape, and dabbable concentrates pushed the index lower.

That said, the average retail price for flower, ingestibles, topicals, and vape has stabilized after dropping 9% through the third quarter—a result of market seasonality. While Q3 2018 dollar sales for cannabis products declined roughly 4%, BDS attributes the 2019 decline to concerns surrounding vaping. In recent months, Benzinga saw these same vaping concerns induce stock price volatility for companies like Philip Morris International Inc. (NYSE: PM) and Altria Group Inc. (NYSE: MO)

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.

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