In this White Paper, you will learn:
- What is a Contracting Market?
- Recent Price Falls in the Cannabis Market
- How to Market in the Downturn
- And More!
What is a Contracting Market?
A contracting market is one that is shrinking or seeing a decrease in prices. This can also be seen as market deflation.
According to Investopedia:
“Deflation can be caused by many different economic factors, including a decrease in the demand for products, an increase in the supply of products, excess production capacity, an increase in the demand for money, or a decrease in the supply of money or availability of credit.”
Recent Price Falls in the Cannabis Market
The cannabis market is one of the most recent to see rapid price drops despite widespread inflation in nearly every other area of the economy.
These prices drops are due to multiple factors that demonstrate the complex nature of the industry.
According to CNN:
“Price declines may not mean cannabis is immune to inflationary effects, they’re just yet another example of the complex business dynamics playing out in this burgeoning industry.”
These Factors Include:
- Excess inventory
- Heavy competition
- Lack of federal legality
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