Colorado dispensaries are on track to see their lowest annual marijuana sales since 2016. Despite historically higher December sales, recent data suggests a potential decline in revenue due to falling prices, increased competition, and shifting consumer demands.
Colorado dispensaries are facing a potential slump in annual marijuana sales for the first time since 2016. According to monthly reports from the state Marijuana Enforcement Division, sales through the first eleven months of 2024 reached just over $1.28 billion, with around $109 million sold in November. To surpass the $1.5 billion mark for the year, dispensaries would need to generate over $200 million in December.
While historically, December sees a surge in marijuana sales compared to November, driven by holiday festivities, recent data suggests a possible downturn. The MED's monthly marijuana fee and tax revenue reports, released earlier than dispensary sales figures, show a $1 million decrease from November to December, dropping to $19.1 million. Although a dip in fee and tax revenue doesn't always directly correlate with a decline in sales, it does indicate that December's dispensary traffic might be on par with, if not lower than, November's already sluggish numbers.This potential decline in sales follows a trend of decreasing marijuana revenue in Colorado since 2021, when sales peaked at over $2.2 billion. Annual sales have been falling for three consecutive years, attributed in part to decreasing wholesale marijuana prices. As of January 1, 2024, wholesale weed prices in the state reached their second-lowest median point since recreational sales began in January 2014, at $658 per pound, according to the state Department of Revenue. Adding to the challenges, established dispensary companies like Good Chemistry, The Health Center, High Level Health, Lightshade, Maggie's Farm, Mighty Tree, and Terrapin Care Station have closed or sold nearly two dozen metro locations combined in 2024. The industry is grappling with increased competition, fluctuating demand, and the ongoing impact of economic factors. This situation raises concerns about the future of Colorado's once booming marijuana market
Finance Cannabis COLORADO MARIJUANA SALES DISPENSARIES ECONOMIC DOWNTURN CONSUMER DEMAND
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