Scott Lentz
Audio By Carbonatix
The state’s dispensaries enjoyed some of this year’s most successful months in July and August, according to the Colorado Department of Revenue, combining for over $231 million in total marijuana sales. But even with the summer bump, signs still point to a shrinking market.
July and August were the best performing months so far in 2025 for Colorado dispensaries, but those same months combined for almost 6 percent more in marijuana sales last year. The two months are among the highest-earning on the calendar for Colorado cannabis every year, and one of many indicators of the state’s market health.
Just five years ago, dispensaries sold almost $445 million total in July and August, DOR records show. That’s 48 percent more than what they sold this year. However, that pot-selling frenzy occurred a few months into the COVID-19 pandemic, which likely inflated sales to an unsustainable level, according to industry owners and executives. Since early 2021, DOR data shows Colorado marijuana sales have steadily dropped, going from $2.2 billion in 2021 to under $1.4 billion last year. In 2025, dispensaries are on pace to sell about $1.3 billion.
Colorado Department of Revenue
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Colorado’s marijuana industry has been through a bumpy ride since the post-COVID dip. Although annual sales appear to be leveling out, business owners are still struggling. According to the DOR, wholesale flower prices are currently tied for their record low, at a median of $649 per pound. From September 2023 to September of this year, there was a 25 percent drop in the number of licensed marijuana cultivations in Colorado while the number of recreational dispensaries stayed flat, state ownership records show.
The fluctuating market has led to the closure of several established cannabis brands and dispensaries in Colorado, including ACA (formerly A Cut Above), Eclipse Cannabis, L’Eagle and Verde Natural, as well as brands like Bubba’s Kush and Dablogic. However, even as stores continue to close, particularly in the Denver area, new dispensaries often pop up in their place.
Since 2014, Colorado’s medical and recreational dispensaries have tallied almost $17.8 billion in marijuana sales, accounting for over $3 billion in state tax revenue, according to the DOR.
