Colorado’s cannabis sales have fallen for a second consecutive month, as the state’s cannabis market continues its decline.
According to the latest statistics from Colorado’s Department of Revenue, total cannabis sales in February fell from $115.4m in January 2024 to $114.4m in February.
Discounting November 2023, which saw the lowest sales in the state since 2017, February 2024 represents the poorest performance since February 2018, when sales hit $112.5m.
While total retail cannabis sales have remained flat for the last three months at around $100m, Colorado’s medical cannabis industry has been experiencing a continued decline.
Month-on-month, medical sales fell from $15.2m in January to $13.8m in February. This decline was similar on a year-on-year basis, dropping from $15.4m in February 2023.
With Colorado being the first US state to legalize adult-use cannabis sales, its rapid decline since pandemic highs is now being seen as a warning by other states.
According to Green Market Report, New York’s cannabis policy czar John Kagia referenced the state’s falling sales in a recent meeting with the Cannabis Control Board, citing a 33% drop in the number of licenced retailers, a 35% drop in growers, a 13% fall in manufacturers, and a 48% drop in testing labs since between 2017 and December 2023.
Since the state launched a retail market over a decade ago, wholesale prices have fallen by 60% from $2000 to around $750 a pound, while average retail revenues have fallen 30% since the pandemic highs.
