Colorado’s cannabis industry is preparing for tough times as cannabis sales drop and economic problems pile up.
During the COVID-19 pandemic lockdowns, cannabis businesses serviced consumers eager to stock up on their favorite edibles, concentrates, and pre-rolls. That high has since given way to a low for the industry, as less consumer spending means sales are falling in both the adult-use and medical markets, according to Headset, which provides insights into cannabis consumer trends.
In Colorado, total sales for cannabis stood at $153 million in April – a 26% decrease compared to about $206 million sold that month last year, according to the Marijuana Industry Group, the trade association for the state’s cannabis industry. Medical sales specifically took a hit, plunging to about $20 million in April from almost $40 million last April.
On top of that, the cannabis industry has to contend with fears of a looming U.S. recession, hurdles around profitability, supply-chain problems, and weakening flower prices. And the downward spiral isn’t restricted to Colorado businesses – it’s a nationwide challenge, said Aaron Smith, CEO of the National Cannabis Industry Association.
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