Colorado Annual Pot Sales Nearly $700 M – Latest Data

209The latest marijuana sales data from the state of Colorado are in, and it’s clear that the state’s marijuana market is a healthy space for entrepreneurs and investors.

According to the state’s report, cannabis dispensaries and retail stores in Colorado had revenues of nearly $700 million in 2014. It was notably the year in which the state became the first to legalize recreational marijuana sales.

This total revenue includes over $313 million in recreational sales and a little under $386 million in medical cannabis sales.

Industry watchers say this tally is impressive and underscores the huge potential of the marijuana industry.

Marijuana Industry Group executive director Michael Elliot said the total is “a pretty good starting number.”

Denver-based LoPro Consulting partner Jason Katz agrees, saying the figures are “very exciting” and are “an excellent indicator” for the other states looking to legalize recreational cannabis. He added that such states could see Colorado as a benchmark in terms of potential sales and tax revenues.

Recreational marijuana was a Colorado superstar last year, with explosive growth as more cultivators and shops opened across the state. Tourism played a big role, and edibles accounted for a big share of sales.

In January 2014, only a handful of recreational pot stores were operating but sales still hit $14.6 million. By December, the number spiked to $35.1 million, making it the best month for the state’s recreational sector.

Rec sales even outpaced medical cannabis sales several times in the year. In December, for example, MMJ revenues reached only $31.7 million – a huge sum, but still smaller than that of recreational revenues.

But the medical marijuana sector was able to hold its own. MMJ sales in February hit an all-time high at $35 million. It fluctuated for the rest of 2014, but the year’s annual MMJ revenue still rose by about 17%, estimated Marijuana Business Daily.

The growth in MMJ sales was thanks in large part to low taxes making over-the-counter products much more affordable for registered patients than for customers buying for recreation.

Despite this, Katz believes recreational marijuana will continue to outpace its medicinal counterpart in terms of sales. This is not only due to tourists’ interest. According to Katz, the dominance of recreational cannabis could be attributed to two things: one, more retailers will be up this year, and two, there is still a lack of research to support medical cannabis use.

Katz predicts that the industry is “inevitably headed to two segments”. The recreational sector is easier because “it’s just about retail” while the medical sector will require years’ worth of research and development before real breakthroughs can happen.

Posted in: Articles

Comments are closed.