Colorado’s adult-use marijuana market continues to surge nearly five years after the launch of recreational sales in the state.
Through August 2018 – the most recent data available from the Colorado Department of Revenue – recreational marijuana sales topped $800 million and the state is on pace to surpass $1.2 billion by the end of the year.
That would represent a 12% increase over total sales in 2017.
As of August 2017, 498 recreational stores were licensed throughout the state; that number grew to 541 by September 1, 2018 – a 9% increase.
Meanwhile, concentrates and edibles have been steadily growing in popularity with consumers. Both types of products retail for a higher price relative to traditional flower.
Other notes about recreational marijuana sales in Colorado include:
- Though total rec sales continue to climb, the rate of growth is slowing – a natural and expected development that occurs in any booming market. For example, 2016 adult-use sales in Colorado came in about 50% higher than sales in 2015, while 2017 sales ended up 27% from 2016.
- Seasonal sales trends are consistent and predictable, another sign that Colorado’s recreational cannabis market has reached a relative state of maturity. Sales will likely fall month-over-month from August until November, spiking back up again in December.
- Monthly adult-use sales records have been broken three times so far in 2018. A record was set when sales topped $105 million in March, which was broken when sales hit $111 million in July and then again in August, when sales neared $113 million.
Eli McVey can be reached at [email protected]
With the rise of adult use cannabis, experts see medical marijuana dominated by two distinct markets.
How does one actually find the true demand for pot? Are we about to get a one-time surge (eg ACB today)? Or is the organic growth expected to be 27% + for the next 5 years as other states come online?
Robert,
I actually think we will continue to see growth in Colorado, but it will be more in the 12 – 15% yearly for the next few years. At some point, though, it is going stop growing, in Colorado anyway, and I expect that to be in less than 5 years. We are still seeing new buyers coming into the market. ( I believe this is now mostly older people who are reading about CBD or low THC options and hearing miracle stories from their friends.) I don’t believe OK , TX, or NM will go Rec any time soon. (Clearly Utah isn’t) The medical market in each of those states will impact CO, but not as much as Rec legalization would affect the market here. The biggest threat? National legalization. Grin.
It’s getting better…
National legalization will drive up the price of rec. usage and hopefully taper off again. Black market not being policed is an obstacle.
Keep an eye on $WCVC, launching AmeriCannaCafe with 2 MJ companies $USMJ & $PJET.