1 sat \ 1 reply \ @Bell_curve 10 Jun \ on: Colorado’s Weed Market Is Coming Down Hard and It’s Making Other States Nervous econ
Colorado's once booming cannabis market has taken a sharp downturn, plummeting from $2.2 billion in sales in 2020 to just $1.5 billion in 2023, a decrease of over 30%[1]. This has led to layoffs, closures, and downsizing across the industry[1]. The market decline has also significantly impacted state finances, with Colorado collecting only $282 million in cannabis tax revenues last fiscal year, a 30% drop from two years prior[1].
Several factors are contributing to Colorado's cannabis market woes:
  1. Oversaturation: The state issued too many licenses, leading to an oversaturated market[1][6].
  2. Competition from nearby states: The legalization of cannabis in New Mexico and Arizona has drawn customers away from Colorado, especially in border counties where sales have fallen nearly 50%[1].
  3. Regulatory burdens: Colorado has imposed strict regulations on the industry, including a bill last summer that severely restricted the sale of intoxicating hemp products[1][6].
  4. Falling prices: Marijuana prices in Colorado dropped 60% from 2014 to 2023, leading to decreases in sales tax revenues[3].
Colorado's experience serves as a cautionary tale for other states looking to legalize cannabis[1]. It highlights the importance of carefully regulating the industry and managing market competition to ensure a stable and sustainable cannabis tax revenue stream[3][6].
Sources [1] Colorado's Weed Market Is Coming Down Hard and It's Making Other States Nervous https://finance.yahoo.com/news/colorado-booming-weed-market-went-110000414.html [2] Dow crosses 40,000, cannabis stocks rise: Market Domination https://finance.yahoo.com/video/dow-crosses-40-000-cannabis-213922194.html?guccounter=1 [3] Marijuana tax revenues fall short of projections in many states ... https://finance.yahoo.com/news/marijuana-tax-revenues-fall-short-122828011.html?guccounter=2 [4] r/StockMarket - Reddit's Front Page of the Stock Market https://www.reddit.com/r/StockMarket/ [5] Colorado's Weed Market Is Coming Down Hard and It's Making ... https://www.ar15.com/forums/General/Colorado-s-Weed-Market-Is-Coming-Down-Hard-and-It-s-Making-Other-States-Nervous/5-2729971/ [6] Colorado pot boom is going up in smoke other states worried - Audacy https://www.audacy.com/kearth101/news/colorado-pot-boom-is-going-up-in-smoke-other-states-worried
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0 sats \ 0 replies \ @Satosora 10 Jun
I am looking forward to the results of hemp being more widely used. Its supposedly supposed to last a long time.
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