Recent reports from denver post Analyzing the post-pandemic impact on the cannabis industry in Colorado. Combined recreational and medical cannabis sales in the state once peaked at $226 million, but sales are now declining and small businesses are struggling to survive.
“The market is just bad. denver post. “There are shops closing here and there.”
Colorado medical cannabis sales fell to $15 million in February, the lowest recovery since retail sales began in 2014. Medical cannabis sales increased slightly in March to about $17 million, but $5 million less than in March 2022. Revenue for the year was recorded at $122 million, down $17 million from last year’s figures.
On May 9, the U.S. Department of Health and Human Services released a fact sheet detailing “.End of public health emergency due to COVID-19“While the country and many of its industries return to business as usual, cannabis business executives are facing a glut of cannabis products, lack of demand, prices falling to record lows and a shortage of cannabis tourists.” I keep seeing ripples.
In recent years, many states bordering Colorado have approved recreational marijuana. This includes Montana and Arizona in 2020 and New Mexico in 2021, creating competition from Colorado.
Cannabis recruitment firm Vangst recently 2023 Vangst Jobs Report. Cannabis-related jobs fell 2%, according to the report, making Colorado the second-highest state for cannabis-related job losses. It also ranked sixth on the top list of cannabis-related jobs, which has fewer positions than states like California, Michigan, Illinois, Florida and Massachusetts.
Small cannabis businesses aren’t the only ones in trouble. Big companies like Curleaf are similarly pivoting. in January, Curary Leaf closed its offices in Colorado, California and Oregon “as part of its ongoing effort to streamline its business.” According to Curaleaf CEO Matt Darling, the move was also made because of increased competition in the black market. “We believe these states represent future opportunities, but current price compression caused by a lack of meaningful crackdowns on illegal markets prevents us from generating an acceptable return on our investments. .” Darling said in a press release:.
The closure of cannabis businesses has also affected the real estate market.a National Real Estate Agents Association A recent report explained that “commercial property purchases by marijuana industry companies have decreased, and there has been a corresponding increase in leasing activity.”
denver post We spoke with Renee Grossman, a local entrepreneur who has set up five retail stores in Colorado since 2013 and has also branched out into growing and manufacturing. “Too many stores, too many growers, too many products,” Grossman explained. denver post. “Right now, investors are all on the sidelines, waiting for a bottom, and no one knows exactly when that will happen.”
Grossman and many other managers have had to lay off dozens of employees just to keep paying their bills in the midst of uncertainty. “Most companies I know are either in the red or have shut down and scaled back,” Grossman said. “A lot of companies my size and smaller are really feeling the jeopardy.” bottom.
Cannabis tourism was initially promoted to draw people to Colorado, but even as COVID-19 made travel safer, recreational cannabis An increase in states changed interest. According to Buck Dutton, vice president of marketing for the Native Roots Cannabis Company, sales on April 20 were lower than in recent years. “…people don’t feel the need to travel here to spend April 20 with us,” Dutton said. denver post. “The only thing it lived up to is we thought it was going to be bad.”
Marijuana Industry Group executive director Truman Bradley likened Colorado’s current state to “the specter of the future of Christmas.” The excitement that boosted sales in Colorado as the first state to legalize recreational marijuana has since waned. Bradley said the only way for Colorado to survive now is for the industry to “slim down” in the sense of thinning out the competition. He called on state legislatures to re-evaluate legalization. “It’s important for lawmakers to understand that when they’re number two in the decade of legalization needs to be something fundamentally different than when they’re number one in the decade,” Bradley said. rice field.