Colorado cannabis sales have declined 32% since their record high of $226 million in July 2020, falling to $153.68 million in May, KRDO reports. The record July 2020 sales were realized in the midst of the coronavirus pandemic.
Adam Orens, the founder of MPG Consulting, the firm contracted by the Colorado Department of Revenue to track marijuana sales and trends, told KRDO that the state has reached “market maturity” for the cannabis sector but added “it’s more about COVID than anything else” as people return to work and their normal lives. Orens also pointed out that other states that border states where prohibition is still the law of the land have enacted their own legalization reforms.
“A city like Trinidad’s sales, or Pueblo’s, will decline, because folks that may be coming from Dallas (Texas) can go somewhere in New Mexico instead.” — Orens to KRDO
Tom Scudder of EmJ’s Dispensaries told KRDO that medical cannabis sales are down 50% over the past year and are at their lowest levels since 2013. He said he’s had to lay off 27 people in their grow facility and six in their retail store.
“They think we’re all getting rich, and things are going extraordinarily well,” he said, “but if you’re on the inside of the industry, you understand the harsh reality that we’re dealing with right now, and it’s a pretty tough situation.”
Tiffany Goldman, chairman of the Marijuana Industry Group (MIG), believes, however, that the sales slowdown is unrelated to the pandemic, but rather the passage of a measure last year that limits the amount of concentrates that can be purchased daily. The measure reduced those limits from 40 grams per day to eight grams, meant to reduce teen consumption.
MIG estimates that if the sales downswing continues, Colorado will lose $80 million in tax revenues compared to those realized last year.
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