Cannabis sales in Colorado set a new monthly record in May, reaching its highest level since recreational sales began in 2014.
Dispensaries sold products worth $ 192,175,937 in May, according to data from the Department of Revenue’s Marijuana Control Division. That’s roughly 29% from April and a 32% increase from May 2019.
Sales at both medical and recreational product stores reached monthly highs, at $ 42,989,322 and $ 149,186,615, respectively. Collectively, both sectors have sold more than $ 779 million in 2020 and have paid more than $ 167 million in taxes and fees to the state.
Roy Bingham, co-founder and CEO of analyst firm BSDA, said the confluence of various factors caused by the pandemic is likely to be causing the sales surge. For one thing, many people can have more free time and spend more time at home, where cannabis is generally consumed. Existing marijuana users are also buying more every time they go to the dispensary, a trend that started with supply in March, when Colorado underwent a state order to stay home.
“Maybe everyone has gotten used to consuming a little more,” Bingham said.
After losing market share in products like groceries, the flower is experiencing a rebound in sales likely driven by the drop in price, he said. According to BDSA, cannabis buds were at $ 4.37 per gram in May, down from $ 4.71 per gram in January.
“Cannabis is beginning to look like it is anti-recession, or at least recession resistant COVID,” Bingham said, adding that Colorado has seen “spectacular growth” this year.
Liz Connors, chief analyst at Headset, who also tracks consumer trends, expects sales to continue to rise in June and July as tourism increases.
Clinics in Centennial State were considered essential businesses during the first days of the pandemic and the state order to stay home. So far, monthly cannabis sales this year have consistently surpassed 2019, which was the highest grossing year on record.
