Marijuana Business Factbook 2019

Marijuana Business Factbook 2019 Chapter 2 | State-By-State: Legal Overview, Market Data and Outlook 52 © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. MARKET OVERVIEW Estimated number of in-state customers 1,400,000-1,700,000 Estimated 2019 recreational marijuana sales via retail stores $1.4 billion (up from $1.2 billion in 2018) Overall 2019 marijuana market $1.7 billion (up from $1.5 billion in 2018) SUMMARY What to watch in 2020 Cannabis sales in Colorado topped $1.7 billion in 2019, fueled by new customers entering the market. Although the vaping crisis has dampened sales of vaporizer products in Colorado’s adult-use market, top-line sales were better than ever―especially considering that Colorado is the oldest adult-use market in the nation. In late May 2019, Gov. Jared Polis signed legislation allowing out-of-state investment in Colorado’s cannabis industry, a move that’s expected to bring new cash flow into the state as well as marijuana products from companies that previously were unable to do business there. Marijuana Business Opportunity Rank for 2020 B+ As the first state to legalize recreational cannabis use, Colorado’s market has had ample time to grow and evolve, and the entry of several additional states to the adult-use market does not seem to have put a damper on sales. Wholesale cannabis prices―which had been on a downslide for several consecutive quarters― began ticking back up in 2019, suggesting that some less-profitable operators are going out of business. This might spur another wave of growers to enter the market. Although growth and opportunity can be found in Colorado, the market remains extremely competitive, and any new entrants need to have high levels of operational expertise in order to find success. However, legislation allowing for out-of-state ownership and investment could bring opportunities for those that don’t want to start a new business in the state, while a continually growing market bodes well for existing operators. COLORADO Recreational continued