Retail cannabis sales in Colorado are at an all-time high. Data from the Colorado Department of Revenue’s Marijuana Enforcement Division indicates that almost $200 million worth of cannabis products were legally sold within state borders during the month of May. This is obviously good news for cannabis operators with retail dispensaries in Colorado.
Sales of Marijuana for Recreational and Medical Use at All-Time High in Colorado
Colorado legalized the recreational use of cannabis in 2014, and now the state has hit a new monthly record for marijuana sales. State records show that Colorado retail marijuana dispensaries sold $192,175,937 worth of cannabis and cannabis-related products in May 2020, which is the most recent month for which data is available. This represents a month-over-month increase of 29% from April 2020 and a year-over-year increase of 32% from May 2019.
The massive amount of money being raked in by dispensaries in Denver, Aurora, Fort Collins, and elsewhere in Colorado includes both recreational and medical marijuana shops. The numbers indicate that recreational marijuana accounted for just over $149 million in sales in May, while medical marijuana accounted for almost $43 million in sales in May.
During the first five (5) months of 2020, dispensaries sold more than $779 million worth of cannabis products. This has been a huge boon to the state by generating more than $167 million in taxes and fees, which has always been one of the main arguments in favor of legalizing marijuana at the federal and state level.
Why Are Colorado Cannabis Dispensaries Making So Much Money in 2020?
One possible reason for the major uptick in marijuana sales is the coronavirus pandemic, which resulted in Colorado dispensaries being declared “essential businesses” while many other Colorado retail stores were being ordered to shut down. Additionally, many people have used marijuana as an outlet for stress and relief from anxiety caused by COVID-19.
Another possible factor in the recent rise in cannabis sales could be a substantial price drop in marijuana. Marijuana products such as flowers and cannabis buds have seen their average price decline by almost 10% since the beginning of the year, making the items more affordable to the typical consumer. As a result, the Colorado marijuana market has seen significant growth in 2020 with seemingly no end in sight.
Contact Scythian to Learn About Cannabis Real Estate Investing Opportunities
It has become apparent that 2020 is likely to be the highest-grossing year on record for Colorado marijuana dispensaries, with cannabis sales in the first half of the year far outpacing sales in 2019. This bodes well for Colorado cannabis operators, as well as anyone who has invested in cannabis real estate in this thriving market.
Scythian Real Estate is a cannabis real estate investment fund that partners with sophisticated, well-capitalized cannabis companies on assets primarily intended for retail use. Scythian also offers investors attractive opportunities to get involved in the cannabis real estate market. To learn more, email Scythian Real Estate.
PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.