As the legal marijuana movement continues to grow across the country, some states are raking in big bucks. Colorado, a state at the forefront of both medical and recreational marijuana, is now making $100 million a month in marijuana money. Colorado marijuana sales are soaring in an industry that’s booming.
Million Dollar Months are Now the Marijuana Industry Norm in Colorado
In May 2017, Colorado marijuana sales reached $100 million for the 12th consecutive month. According to Bethany Gomez, director of research for the Brightfield Group, a marijuana market research firm, $100 million is “the new norm” in Colorado. From May 2016-May 2017, sales reached $1.4 billion.
By August 2017, Colorado medical and recreational marijuana sellers had sold an average of $1.02 billion worth of weed each month for the year. This is up from 2014 when recreational marijuana sales started and combined sales reached almost $700 million. By 2015, this number jumped to just over $996 million. Total sales for 2016 were over $1.3 billion.
While Colorado marijuana sales continue to rise, experts believe it won’t be long before these numbers start to stabilize. Once other states begin to assume their own laws regarding recreational weed, Colorado isn’t likely to see the weed tourism traffic it does now. The local market will also eventually mature. In turn, this will slow down the revenue that currently continues to grow.
Will Other States Make More Money on Cannabis than Colorado Marijuana Sales?
While Colorado is undoubtedly leading the pack of legal cannabis states, it’s expected that other states will soon surpass the cannabis boom Colorado’s been experiencing. When recreational sales become legal in California in 2018, Colorado sales could take a hit. Some marijuana experts predict that Nevada sales are set to possibly surpass Colorado marijuana sales as well.
Derek Peterson is CEO of a cannabis agricultural company that has four dispensaries in Nevada. He believes Nevada is set to become the third largest cannabis market. Recreational sales of marijuana in Nevada began July 1, 2017. Within the first four days of sales, revenue topped around $3 million. Sales of recreational weed in Nevada were so overwhelming that Nevada Governor Brian Sandoval declared a state of emergency.
Peterson says, “You’ve seen it in Colorado. You’ve seen it in Amsterdam. People will travel specifically for cannabis.”
Colorado has seen record numbers in tourism over the past few years. And while the trend seems to be slowing down a bit, the number of tourists visiting Colorado continues to increase. The tourism economy in the state is shown to be almost double that of the national rate. Many believe this is a direct influence of the legal marijuana industry.
As revenue continues to soar, Colorado waits to see how recreational cannabis sales play out in other states. How much impact California and Nevada retail cannabis sales will impact Colorado revenue will be revealed with time. For now however, Colorado is flying high.