Why Are Colorado Marijuana Sales Falling?

Through Lydia Karuki

Colorado marijuana sales have been in sharp decline since February of this year. While total marijuana sales topped $1.1 billion in the first half of 2021, the state managed a paltry $906 million for the same period this year.

There was a striking 22% drop in marijuana sales in June compared to sales in June 2021. The monthly decline for May was 1%. This decline has continued for four consecutive months and the trend is likely to continue unless appropriate action is taken.

In June, legal marijuana sales totaled $146 million. This is the fourth month of steady decline. Tom Scudder, CEO of EmJ Dispensaries, reports that sales at his medical dispensaries are down a whopping 50% over the past year. Speaking to KRDO, he said: “You think we’re all going to get rich and things are going extraordinarily well, but if you’re within the industry you understand the harsh reality that we’re dealing with right now and it is quite a difficult situation.”

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Byron Buck, a dispensary manager in Dabarado, attributes the decline to unstable laws that are crippling Colorado’s medical marijuana industry. “Declining medical marijuana sales are due to potency limits and HB-1317 which has all but paralyzed the medical marijuana industry here in Colorado Springs. It limits the amount a person can buy when they come to the pharmacy so they don’t get the necessary medication that the doctors prescribed.”

Photo by Ivan-balvan/Getty Images

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He added that the post-COVID economic recession could help. HB-1317 is a bill created to regulate the sale of marijuana concentrates. This limits the amount of concentrate a person can purchase from a cannabis dispensary at one time. In some cases, patients are unable to purchase their prescribed doses of medical marijuana, Byron says.

However, this theory is controversial. If someone really wants to buy cannabis, they can always ask a friend or family member to make the purchase on their behalf. It seems that the theory of economic recession and patients spending less on cannabis purchases holds more water.

What’s Causing the Free Fall in Colorado Marijuana Sales?

Unfortunately, it’s not clear why marijuana sales are declining so quickly in Colorado. Colorado was the first state to legalize adult-use cannabis in 2012 when Amendment 64 was passed into the Colorado constitution. The state has long enjoyed a vibrant medical and recreational market. However, things have changed in the past four months and the legal industry is struggling to stay afloat.

This article originally appeared on MyCannabis.com and has been republished with permission.