Colorado Has Sold More Than $1 Billion of Cannabis So Far This Year

Although Colorado was the first state in the US to legalize recreational cannabis, the market does not receive the same amount of love from investors when compared to markets like California, Illinois, Michigan, or Nevada.

In July, Colorado cannabis sales surpassed the $200 million level and we are impressed with how the market has grown. So far this year, the state has generated more than $1.3 billion of revenue from the sale of cannabis and is pacing for a record year.

During the last two years, there has been a major increase in interest in Colorado cannabis operators from high-profile public and private cannabis companies. We attribute the increase to the state changing the regulations associated with receiving investments or being acquired.

Many analysts expected Colorado’s cannabis market to lose steam as additional states legalized recreational cannabis, however, this was not the case. Demand for cannabis in Colorado continues to rise on a year-over-year basis and the industry has not faced issues that we have seen in mature markets like Oregon and Washington.

Over the next year, we expect to see interest in Colorado cannabis operators continue to increase and this is a trend that we are bullish on in the near and long term. As the industry continues to consolidate, we expect certain operators create a large moat around the business as they continue to capture market share in burgeoning markets.

We continue to believe the US cannabis industry is in the early innings of a major growth cycle and will monitor how the new White House administration supports the growth of it. The COVID pandemic has increased the needs for additional taxable revenue streams and we believe that cannabis is part of the answer.