Colorado will surpass 3,000 marijuana business licenses by the middle of next year, a report from a University of Denver business professor predicts.
As of Dec. 1, there were 2,913 active licenses in the Centennial State, according to Paul Seaborn, an assistant professor at DU’s Daniels College of Business. That’s a long way from the 1,708 licenses that existed in 2014, when adult-use marijuana was legalized in the state.
Seaborn pointed out in a news release “the state has experienced a 70% increase in licenses in just under two years.”
The report states that while the majority of licenses in Colorado are still for MMJ, the two fastest-growing license segments are retail marijuana products manufacturing and recreational cannabis cultivation.
The industry’s long-term outlook is “unclear,” Seaborn said, noting that certain locales in the state, such as Denver, have capped the number of licenses. He also said the Nov. 8 legalization votes in states such as California could affect Colorado’s market. The new markets offer greater growth opportunities for entrepreneurs.
In addition, Seaborn cited the uncertainty stemming from the incoming Donald Trump administration and its position toward marijuana.