The population of the states should determine which cannabis markets are the largest, but for the next five years the leading markets have already emerged. California, Colorado, Canada, Washington, and Michigan remain on track to lead in sales volume.
California accounted for 27% of the 2016 legal market in North America, Colorado represented 20% and Washington represented 11%.
Colorado Cannabis Market 2014-2016
Colorado’s retail sales in adult-use and medical dispensaries combined grew from $699.2 million in 2014 and $996.2 million in 2015, to over $1.3 billion in 2016. In 2016, cannabis sales averaged $1.98 million per retail location in Colorado’s adult-use market and $896,000 per location in the medical channel. There were over 490 medical and 420 adult-use dispensaries in 2016.
Colorado Cannabis Market 2017
Cannabis spending in the state totaled $1.5 billion in 2017, including both medical and recreational sales. This figure is expected to increase to around $2.5 billion in 2022. The total output of the cannabis industry in Colorado at that time is projected to be roughly $4.6 billion.
- Number of dispensaries and cultivation sites
- Number of registered patients/in-state customers
- Actual 2017 marijuana sales via dispensaries/stores
- Actual 2018 (Jan - Oct) cannabis sales via dispensaries/stores
Medical: Dispensaries – 524; Cultivators – 782
Recreational: Retail Stores – 481; Cultivators – 662
Medical: 94,577 (down from 107,534 in early 2016)
Recreational: 550,000 – 610,000
Medical: $416 million (versus $438 million in 2016)
Recreational: $1.09 billion (up from $875 million in 2016)
Medical: $277 million
Recreational: $1.01 billion
15% wholesale excise tax, 10% special sales tax
Demand for Cannabis Concentrates in Colorado
Concentrates and edibles accounted for about a third of overall cannabis sales, up from just 24% a year earlier. Growth in concentrates sales accounted for most of that increase.
While all categories of cannabis products enjoyed healthy growth, alternative methods of consumption outpaced traditional flower sales. In Q1 2014 when adult-use launched in Colorado, over 70% of sales came from dried flower; in 2017, that was down to 61.8%. In contrast, concentrate sales in Q1 2014 were about 13% of sales and in 2017 they had 27.3% of sales. Vape pens and vape products, candy, and other portable and convenient methods of consumption are especially popular with Colorado consumers.
Our Cannabis Business Plans Templates and Financial Models are populated and tailored to the Colorado market conditions and regulations, you can find the best solution for cultivation, processing, manufacturing, retail or a vertical integrated business.