Colorado’s hashish gross sales have continued their downward pattern, with the newest official figures displaying the most important year-on-year drop this 12 months in June.

This looming cloud did have a minor silver lining, nevertheless, with gross sales complete gross sales in June of $113.7m rising marginally from Might’s $113.1m.

Regardless of this slight month-on-month respite, every month of 2024 has seen a year-on-year decline in complete gross sales (medical and adult-use) in comparison with the identical month in 2023, with essentially the most vital drop occurring in June 2024, the place gross sales decreased by 13.3%.

Within the six months to June, 2024, medical gross sales decreased by roughly 5.8%, whereas retail gross sales dropped by about 11.2%.

The primary six months of 2024 mark the bottom hashish gross sales figures in Colorado since 2016.

There was a big decline in each medical and leisure gross sales since 2022, with June 2024 marking the bottom June gross sales since 2016.

Market saturation and oversupply have performed a significant function on this decline, with hashish manufacturing within the state exceeding demand by 20% in 2023, resulting in steep worth drops. Wholesale costs have plummeted from $2,000-$3,000 per pound within the early years to as little as $600 per pound, making it troublesome for companies to remain worthwhile.

Moreover, elevated competitors from neighboring states like New Mexico and Arizona, which have launched their very own authorized hashish markets, has decreased the inflow of out-of-state clients that after bolstered Colorado’s gross sales. The rise of unregulated hemp-derived merchandise has additional eroded market share, providing customers a less expensive different.​

Financial pressures, together with excessive compliance prices and complicated rules, have compounded these challenges, resulting in market consolidation and the closure of many small companies. The post-pandemic correction has additionally had an enduring influence, because the surge in demand seen throughout COVID-19 has subsided, leaving the market to regulate to decrease gross sales and costs​.