Colorado's Cannabis Market Faces Lowest Sales Since 2015, Leaving Some to Wonder If Coloradans Have Moved On

Colorado's cannabis market experienced a significant decline in November 2023, reaching its lowest sales level since February 2015. This downward trend has continued for several months, according to data from the state's Department of Revenue.

In November, both recreational and medical cannabis sales amounted to $110.3 million, marking the fourth consecutive month of decline. The adult-use market, which constitutes approximately 87% of total sales, saw a year-on-year decrease of around 16% to $95.8 million. Additionally, medical cannabis sales fell by 11.5% to $14.5 million.

The decline in sales can be attributed to a decrease in the number of growers and manufacturers operating in the state. This reduction in supply has had a direct impact on the overall sales figures. As a result, Colorado collected $19.1 million in cannabis taxes and fees in December 2023, contributing to a total of $274 million collected throughout the year.

These figures represent a substantial decline compared to previous years, with $325 million collected in 2022 and $423 million in 2021. This downward trend suggests a notable downturn in Colorado's cannabis market since the conclusion of the COVID-19 pandemic.

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Although total cannabis sales in Colorado for 2023 reached $1.4 billion by November, projections indicate that the year-end total may fall short of the state's $1.7 billion sales in 2022.

This is significant considering that 2022 was already considered a disappointment for the nation's oldest adult-use market, with sales over 20% lower than the record total of $2.2 billion in 2021. Projections for Colorado's 2023 marijuana sales suggest a potential decrease of nearly 13% from 2022, reaching around $1.5 billion.

The declining sales in Colorado's cannabis market raise concerns about the industry's future in the state. Various factors, including increased competition from neighboring states and regulatory challenges, have contributed to this decline.