DENVER, CO —Colorado’s marijuana industry continues to increase, setting sales records in January and February 2017.
The joined sales of recreational and medical marijuana in the first two months of 2017 provided Colorado a total of over $235 million, 30% higher from a similar timeframe in 2016, according to Marijuana Business Daily on Monday.
Though it is too early to foretell if the sales will remain at such a steady pace all throughout the whole year, sales of medical marijuana are up marginally in 2017 while recreational marijuana sales have improved considerably.
In January 2017, recreational sales are 38% higher than on January 2016. On the other hand, recreational sales in February 2017 is 48% above than the previous year. The recreational marijuana sales this year ranked as second-highest in Colorado’s program history.
Sales are primarily increasing because they arise within a period of traditionally low wholesale marijuana costs, this means that an increase of 48% in sales signifies a much larger increase in substance consumption.
The cost of wholesale marijuana in mid-January 2017 was down by 33% in Colorado than in mid-January 2016, according to Cannabis Benchmarks.
There are two kinds of market forces fueling the sales—new customers and increased expenditures of existing users. It is likely a combination of both in Colorado.
With the new US administration’s inimical stance on recreational marijuana, it is plausible that an increased number of people outside of Colorado are visiting the state to store up products that may not anymore be obtainable in the months to come.
Though marijuana dealers aren’t passing 100% of the reserves apprehended by the lower rate of extensive the substance on to their consumers, retail costs are experiencing downward pressure for recreational, and dispensary store proprietors in competitive markets have more scope to contend on price.
As for customers who are already stuck to their traders in the black market, lower charges may have convinced some to transfer to the right side of the marijuana industry.
But for consumers who are already buying marijuana lawfully from a dispensary or recreational store, lower prices may be encouraging hike in consumption.