Colorado’s Marijuana Industry Gets a Small Bump

Colorado’s marijuana industry saw a rare bump in March, with dispensary sales jumping almost 11 percent month-over-month, according to the state Department of Revenue.

But while the $139.6 million in marijuana products sold in March represented a small increase from February, 2023’s dispensary numbers are still significantly lower than those of previous years. In March 2022, Colorado dispensaries tallied over $162.5 million in sales, and in March 2021, pot shops collected over $207.1 million. Still, even a small bump is worth highlighting.

After dropping 21 percent in 2022 from 2021 totals, dispensary sales this year are already off to a slower start, and wholesale marijuana prices remain at record lows, according to the DOR’s average market rate for pounds of flower.

The sales decline has led to business closures and job losses across the state. According to marijuana industry recruitment firm Vangst, Colorado’s pot industry lost nearly 10,500 jobs from February 2022 to February of this year, down to 27,856 workers.

Marijuana business owners and state economic forecasts suggest that marijuana purchasing in Colorado likely peaked around the one-year anniversary of the COVID-19 pandemic, when dispensaries experienced record sales numbers. According to the Governor’s Office of State Planning and Budgeting, marijuana revenue has “continued to come in well below the levels seen” in 2020 and 2021, with financial issues “stemming from oversupply.”

“While it is still expected that these prices will eventually increase back to higher levels, these price increases will be slower and smaller in magnitude than previously anticipated,” reads a March economic forecast from the governor’s office.

Stuck in a two-year recession, Colorado’s pot industry could use good news on the revenue front, no matter how small – but history suggests that dispensaries could be in for another retraction.

February is traditionally the worst month for marijuana sales in Colorado, according to DOR data, with sales jumping month-over-month into March every year since 2014, when recreational pot sales began. Colorado dispensary sales have only increased from March to April once, in 2015, despite 4/20 occurring in April.