With over three years into adult-use cannabis sales, Colorado’s marijuana industry still sees its stock soaring.
Thus far, 2017 combined adult-use and medical cannabis sales in January and February have eclipsed those same 2016 sales by 30%. The bulk of that increase comes from the adult-use market, as recreational sales in 2017 were up 38% in January and 48% in February compared to 2016.
The data crunch by MJ Biz Daily via Colorado’s Department of Revenue also points out that February’s $86.4 million in adult-use sales was the second-highest total for a single month, falling short of the $88.2 million apex set in September 2016.
Interestingly, this increase in sales comes at a time when the wholesale cannabis market is crashing, down a purported 33% from 2016 to 2017. Recreational pounds of medium-grade cannabis can go for as low as $1,000 on the wholesale market and currently sit in the $1,100-$1,300 range.
Since retail prices, down to $25 an ⅛ at certain outlets, are also at a relative low, consumption is at a clear all-time high. The weed is cheaper yet people are still spending far more money on cannabis.
The only question is whether or not Colorado’s growth can sustain. While more states continue to go legal, the only one with any general proximity to Colorado is Nevada — meaning out-of-staters in the Midwest still flock to Colorado for cannabis.
Moreover, with the peak consumption season of 4/20 just passing, these 2017 numbers should continue to see at least a temporary rise.
credit:marijuana.com
