Reader: Sales Are Down Because Colorado Squandered Its Marijuana Lead

Colorado's marijuana market plunge continues, with dispensary sales falling for the twelfth month in a row. According to data released by the state Department of Revenue, Colorado dispensaries sold about $147.8 million in May, a 4.5 percent drop from April and a 24 percent decline from May of last year, when dispensaries sold over $194 million.

If things continue at the current page, dispensaries are on pace to sell just over $1.8 billion in 2022, the lowest amount since 2019. Both medical and recreational marijuana sales have continued falling in 2022, DOR data shows, but medical marijuana sales have dropped hard, collecting the lowest total through the first five months of the year since the department began tracking sales figures in 2014.

In their comments on the Westword Facebook post of the latest marijuana sales stats, readers offer possible explanations. Says Scott:

Most of the early revenue was from tourism. Sales will eventually flatten out to a market of mostly local customers. That is: local customers who don't have the time, place or interest in growing their own.

Suggests Terra:

#1 the hype and novelty of it have finally worn off. It's not a big deal anymore.
#2 more states have legalized it, so people are no longer traveling to Colorado to buy it.

Adds Chad

#3 over-taxed and chaotic regulations.

Adds Beatriz:

The taxes are as high as Cheech and Chong! No wonder sales are declining.

Adds Matt:

Perhaps if everything else in life hadn’t doubled in price in the past two years, then people would have money to spend on recreational things.

Notes Dave:

Colorado 100 percent squandered its MJ lead.

Explains Derrick: 

Oversaturated by wealthy business investors.
The big guys with twelve warehouses producing cannabis at 0.75/gram are pushing all the small companies out of business. $10,000 a year for a cannabis license is nothing when the big guys are spending a fraction of regular companies on overhead because of sheer volume (and GIANT backing capital.)

Wonders Christopher:

Sales dollars declined. What about sales volume? Lower prices benefit consumers, yes?

RespondsTyler: 

Market wide, we’re all down in sales, from wholesale producers to FoH retailers. Some products are going down in price because of it, but other businesses are having to raise the wholesale cost — so it will eventually be passed onto the consumer in one way or another.

Suggests Seth:

Maybe the market is saturated with junk. Quit pointing fingers and figure it out.

And Bruce concludes: 

I keep spending more than $100 every two weeks! I'm doing my part.

What do you think of Colorado's current marijuana market? Post a comment or share your thoughts at [email protected].