Ongoing Portland cannabis market report will address city's oversupply problem

PORTLAND, Ore. (KOIN) — As Portland’s marijuana market continues to endure an oversupply problem, a local expert is looking into how to mitigate it.

An analysis of the city’s current weed industry is underway, courtesy of Portland-based cannabis consulting company Whitney Economics. Founder Beau Whitney told KOIN 6 the report will also look into what the market could be in five to 10 years, as well as the long-term outlook.

Thus far, the economist said he is seeing the same issue the Oregon Liquor and Cannabis Commission saw in 2022 — when a surplus in supply from harvesters led to a decline in demand for retailers.

His consulting firm is reaching out to cannabis operators to learn how they have been impacted by the oversupply of product. But experts are also curious whether the state is experiencing the oversaturation of licensees.

“At one point, there were more cannabis retailers than Starbucks or McDonald's in the state and so we want to see if the market can still support that number of licenses at the retail level, and then see if adjustments need to be made to the number of operating licenses within the city,” Whitney said.

The economist noted this year’s passage of House Bill 4121, which restricts the number of cannabis licensees to just one for every 7,500 residents. However, he said industry purveyors prefer a different methodology that focuses on consumers specifically rather than the general population.

With that being said, the survey Whitney Economics is set to launch on Dec. 1 will seek responses from a variety of Portlanders with opinions on the cannabis scene and all it entails — even if those opinions are negative.

The survey will supplement the preliminary market analysis the firm is likely to present to city leaders early next year. The goal of the report is to inform the incoming Portland City Council’s decisions on policy related to cannabis.