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Colorado Cannabis Sales Hit New Record In 2020

Colorado Cannabis Sales Hit New Record In 2020

Thanks to recreational and medical cannabis sales, Colorado hit $2.19 billion in sales in 2020, marking a new milestone in the state, according to a data report from the state’s Marijuana Enforcement Division (MED).

Colorado became one of the first states to legalize recreational marijuana, and their sales continue to grow with each passing year.

Most of the sales are from the recreational cannabis market. Colorado brought in $1.75 billion in adult-use marijuana sales, a 24% increase compared to 2019’s $1.41 billion. 

Medical marijuana did not even reach half of the sales as the recreational market, but the $442.5 million generated in 2020 helped the combined number inch towards $2.2 billion.

A few factors played a role in Colorado’s extremely successful year in 2020, such as the Covid-19 pandemic.

As the world faced a lockdown with nowhere to go, MED’s report indicated that the demand for retail and medical marijuana came “as household spending shifted to food, drink, and entertainment consumed at home.” 

This data shows similar trends to other states with legalized cannabis, such as Alaska, Oregon, and Colorado, that witnessed a spike in sales throughout the pandemic compared to the two sales years prior. Arizona is on pace to hit $1 billion in cannabis sales for 2021. 

Many states allowed dispensaries and retail stores to remain open as essential services throughout stay-at-home orders. Plus, this launched other methods of transactions like curbside pickup and delivery services that offered everything from flower to concentrate-filled shatter envelopes

The data from MED also includes tracking cultivation across the state. Growers, too, had an impeccable year in 2020 compared to the years prior. 

Much like the record-breaking sales, cultivators also reached new highs this year. Across Colorado, cultivators grew upwards of 1.24 million plants in 2020, leading to 662.3 million metric tons of cannabis products that entered retail supply. 

MED explained that there is also a surge in cannabis prices for recreational use. For example, the average cost of a gram in 2019 sat at $3.99 in 2019 but later increased to $4.80 in 2020. 

Meanwhile, the prices of medical marijuana grew by 26%, but still, it remained lower than the average cost of recreational cannabis at $3.80 in 2020. 

However, the prices reflect a trend beginning in 2019 when the industry established a “price floor” as “total retail outlets and production levels increased to all-time highs.”

At the top of December, the Colorado Department of Revenue released the Average Market Rate, which showed an overall decrease in prices in five of the seven cannabis categories, according to a report by the Ganjapreneur

The cost of flower went down to $948 per pound while trim decreased to $354 per pound. Additionally, bud for extracts went to $345 per pound, and trim dipped to $253. Wet whole plant prices also fell to $172. Meanwhile, seeds went up to $4 per unit.

Colorado will undoubtedly continue to flourish amid the green rush across the country, but on Jan. 1st, they will be enforcing new rules across the state, specifically for medical cardholders. 

Starting on New Year’s Day, medical patients will only be allowed to obtain 8 grams of concentrates per purchase, compared to the current laws, which permit 40 grams. Officials said this is to try and prevent cannabis patients from purchasing high-potency products, becoming a topic of discussion throughout 2020. 

Additionally, dispensaries and retail stores will have to provide proper warnings detailing the concerns surrounding the overconsumption of extracts. 

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