Colorado’s cannabis market continued its downward trajectory in 2025, with retailers on track to record a fourth consecutive year of declining sales revenue.
But in a troubling sign – and in contrast with other states affected by price compression – Colorado cannabis stores are also selling less product.
According to the Colorado Department of Revenue, marijuana retailers sold just over $1.1 billion worth of cannabis products from January through October 2025.
Sales over the final two months of the year are unlikely to put the state on track to beat 2024’s annual total of $1.4 billion, according to Denver-based Westword.
The number of cannabis units sold in Colorado also dropped 7.3% year-over-year, from 91.6 million in 2024 to 84.9 million in 2025, according to data analytics provider Headset.
That sets Colorado aside from other legacy states like California, where the number of units scanned at retailers increased slightly in 2024 even as sales revenue declined.
What’s ailing Colorado cannabis sales?
The state’s cannabis industry has been grappling with price compression and oversupply since 2022, when sales peaked at $2.2 billion.
Wholesale prices have plummeted, with the median price per pound of marijuana dropping from a high of $1,721 in 2021 to a record low of $648 in December 2025.
Cultivators are going out of business amid declining sales.
The DOR reported a 48% reduction in recreational cultivation licenses between 2021 and 2025. Only 488 licenses were active as of the end of last year.
The contraction has affected several cannabis brands, with some – including Bubba’s Kush, Dablogic and Maggie’s Farm – shutting down or relocating to other states.
Notable retailers like Lightshade and Good Chemistry also have closed or sold locations, citing declining sales as a primary factor, Westword reported.
