Colorado: $1.3 billion worth of cannabis sold in 2016

According to the Colorado Department of Revenue, combined medical and recreational cannabis sales reached $1.3 billion in 2016.

100 million a month

In 2016, the state of Colorado alone sold 1.3 billion dollars worth of weed to consumers and patients. Sales in 2014 reached 700 million followed by 996 million in 2015. According to Miles Light, economist with the association/lobby Marijuana Policy Group, «Colorado is leading the way, driving the American pot industry. However, given that other states have legalized weed, some outside consumption factors should diminish.» He points out, however, that other states aren't expected to allow the first dispensaries until 2018, which still bodes well for 2017 in Colorado. In 2016, monthly sales exceeded $100 million on eight occasions, with consumption peaking during the summer. Recreational cannabis accounted for $875 million and medical for $438 million.

The end of GreenRush in Colorado?

The Colorado market is reaching a first stage of maturity. After 3 years of frantic competition, the Colorado industry is set to regulate itself according to supply and demand. Indeed, producers, distributors and dispensaries have pushed like White Widow. The supply of green buds and THC derivatives outstripped demand in 2016, leading to an increase in the number of cannabis users. falling cannabis prices.

Sally Vander Veer, president of Medicine Man, one of Colorado's largest companies, is a little concerned: «We're still seeing a steady increase in the number of customers and patients, but sales remain constant». Estimating the impact of price cuts is also complicated by the fact that all cannabis business is cash-based and cannot be banked in the company's name.

Cannabis tourism is also going out of fashion, according to the Colorado Tourism Office: «We're seeing a return to more traditional tourism and fewer cannabis tours».

Let's also take a look at the figures for taxes levied on cannabis and its derivatives (concentrates and space food). In 2016, on 1.3 billion sales, the state of Colorado collected $199 million in taxes. In three years of cannabis legalization, the state treasury has pulled in 410 million in taxes. Most of these taxes will be reinvested in education and prevention for young people.

Théo Caillart