Connect with us

Business

Future is Cloudy for Colorado Cannabis

Competition and oversupply drive uncertainty in Centennial State.

mm

Published

on

@ Creative Commons

 

Colorado’s marijuana industry, once booming with combined sales of $226 million in 2020, is now experiencing a sharp decline as dispensaries grapple with an economic downturn. Sales have plummeted, leading to business closures and challenges for small cannabis enterprises.

According to a story in The Denver Post, the current market conditions are unfavorable. March figures show a decline in medical marijuana sales, totaling around $17 million, a decrease of approximately $5 million compared to the same period last year. Retail marijuana sales reached $122 million, but still represented a $17 million drop from March 2022.

While these numbers represent an improvement from February, when medical marijuana sales hit a record low of around $15 million, it is essential to note that sales for both recreational and medical marijuana surpassed $139 million, reaching the highest level since October 2022.

The landscape has significantly shifted since the COVID-19 pandemic, which bolstered the cannabis industry as customers stocked up on edibles and joints during lockdown. In 2023, however, Colorado’s cannabis entrepreneurs face “a perfect storm” of challenges, say the article. These include an oversupply of cannabis, insufficient demand, declining prices, increased competition from other states, the allure of the black market, a lack of cannabis tourism, and a shaky economic forecast for the remainder of the year, despite a steady slowdown in inflation.

“There’s too many stores, there’s too much cultivation, there’s too many products,” one retailer told The Denver Post. “Right now, all the investors are sitting on the sidelines, and kind of waiting to time the bottom — and nobody knows exactly when that’s going to happen.”

Advertisement

Advertisement

SPONSORED VIDEO

Going Global - Pioneering Cannabis Hospitality: A Conversation with Arend Richard

In this enlightening interview, Arend Richard, a seasoned entrepreneur from the cannabis industry, shares his journey from starting a YouTube channel to educate on cannabis use, to co-founding WeedTube, and developing a unique cannabis hospitality business. Born and raised in Colorado, Aaron discusses the evolution of his business ventures and his current project—creating a welcoming, educational environment for both seasoned and first-time cannabis users. He delves into the challenges of establishing a cannabis-friendly social space, including regulatory hurdles and community engagement, and highlights his vision for a new kind of social interaction centered around cannabis.

Promoted Headlines

Advertisement

Advertisement

Advertisement

Facebook

LATEST COMMENTS

Most Popular