Colorado cannabis sales kicked off 2018 at their lowest January level since 2016, as annual total revenue dropped below $1.4 billion for the first time since 2016. Whilst Colorado cannabis sales saw their January levels dip, new monthly data provided by the state shows this occurred eight years earlier than normal compared to 2016.
Total marijuana sales reached $113.6 million last month, representing an 11.6% year-on-year decrease and 39% drop from their pandemic-era peak of $187.6 million reached in January 2021 according to Colorado Department of Revenue data. This decline marks three consecutive years where sales declined during January.
Starting off 2019, the market saw no real momentum as revenue in January was virtually flat versus December’s $113.6 million, capping 2024’s total at an 8% drop from 2023. Though adult-use marijuana sales increased 1.1% year-over-year to $101.2 million, medical cannabis revenue plummeted 19% year-on-year to just $12.4 million versus last January.
Wholesale cannabis prices remain under pressure in Washington state, with retail flower rates reaching $658 per pound as reported by the Department of Revenue for Q1 2025 – their second lowest mark since recreational sales started back in 2014. That remains steady even as state legislative reports found the number of licensed cultivators had decreased 17% year over year with oversupply contributing to price decreases by 63% since January 2021.
Medical cannabis sales have taken an alarmingly steep dive since their pandemic high. January’s $12.4 million medical sales represented only 33% of July 2021’s record $35 million peak; recreational sales now comprise nearly 90% of total cannabis sales in California.
Colorado has experienced significant industry consolidation and downsizing as the result of economic downturn, with Colorado cannabis sales exceeding $16.7 billion since recreational legalization occurred in 2014. Colorado cannabis tax and fee revenue reached more than $20.5 million during January alone.