Colorado's Cannabis Sales Figures Paint Dismal Picture Of A Pioneering Industry, Here's What Went Wrong

After slightly rebounding in March, Colorado cannabis sales saw a 5% month-over-month decrease in marijuana products purchased dropping to $120.1 million in sales in April. That's the worst April sales performance since 2016, data by the state Department of Revenue suggest.

The total April sum includes $105.5 million in recreational cannabis sales and $14.6 million in medical sales. Year-to-date, Coloradans bought $476.5 million worth of cannabis products bringing to a total of $15.9 billion in sales since the market launch in January 2014.

Green Market Report’s John Schroyer noted that based on tax revenues of $22 million garnered last month, a decrease compared to $23 million in April, May sales figures might follow suit.

Once a front-runner in the U.S. for recreational marijuana sales, the pioneering industry and market have been experiencing a downturn for some time now, alongside a trend toward consolidation.

That said, a "temporarily closed" 3D Cannabis, the dispensary in Denver's Elyria-Swansea neighborhood where the first cannabis purchase was made in 2024 paints a picture.

Politico's Mona Zhang said in his recent story "The dismal state of the historic site is a fitting symbol of the plight of Colorado's cannabis market."

What Went Wrong?

Zhang named several intertwined factors – a supply glut that resulted in a sharp drop in cannabis prices following the pandemic. Moreover, the presence of unregulated intoxicating hemp-derived products statewide lowered prices additionally, while marijuana still being considered illegal at the federal level didn't help either with imposing high taxes and costly regulations.

However, Zhang sees the state-level legalization wave nationwide as the main factor for the deterioration of the pioneering cannabis industry.

"Neighbors New Mexico and Arizona are among the 24 states with their own adult-use legal marijuana markets, wreaking havoc on the business plans of dispensaries on Colorado's southern border," Zhang wrote, calling Colorado's cannabis market "a cautionary tale."

"Tourists who once flooded the state for the opportunity to legally experience Rocky Mountain highs have largely disappeared as the novelty has worn off," she added.

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