Cannabis industry’s post-COVID slowdown continues
After peaking during the COVID-19 pandemic, cannabis sales in Colorado have steadily declined for the past several years, with no sign of a bounceback in the near future.
The industry clocked a whopping compound annual growth rate of 14.7% between 2014 and 2022, according to the University of Colorado’s 2024 Colorado Business Economic Outlook report.
But the Colorado Department of Revenue tallied about $115.4 million in pot sales for January 2024, roughly 11% less than the same month the previous year and nearly 50% lower than January 2021.
The industry clocked a whopping compound annual growth rate of 14.7% between 2014 and 2022, according to the University of Colorado’s 2024 Colorado Business Economic Outlook report.”
“Licensing in Colorado is experiencing a decline, which can be a significant factor in the decline of sales,” the CU report said. “The number of issued licenses in June 2023 was 685, a 10.7% decrease year-over-year. Similarly, the number of renewed licenses in June of 2023 has decreased to 514 renewing licenses.”
Despite the general slowdown, the Boulder Valley and Northern Colorado remain hotbeds for cannabis businesses and customers. Boulder County accounted for 7.6% of cannabis sales last year and Larimer County 6.7%, according to CU economists.
Marijuana entrepreneurs have looked for new business opportunities, particularly in the cannabis hospitality space, but economic factors and the regulatory environment have made building such ancillary businesses difficult.
In April, Terrapin Care Station, a Boulder-based dispensary chain and a legal cannabis industry pioneer, announced that it was selling its Colorado pot shops to focus on the growing marijuana market in Pennsylvania. The company said it intends to keep its headquarters in Boulder.
“Terrapin’s legacy will always be rooted in Colorado. We will look back fondly on the past 15 years as a foundational time trailblazing what has become a global industry,” TCS CEO Chris Woods said in an April statement.