Posts Tagged ‘colorado cannabis’

Coloradoans Increasingly Turn to Marijuana for Relief

medical-cannabisSometimes it feels like people don’t agree on anything these days, so it’s reassuring to find that, in Colorado at least, there’s still one thing that can bring people together: weed.

At least according to a new survey released by Consumer Research Around Cannabis.

Consumer Research compiled data from Denver and Colorado Springs, the state’s two largest cannabis markets. They found that despite differences in city size, demographic makeup, and overall political affiliation, more than half of the respondents approved of recreational and medical marijuana use.

Jeff Stein, Vice President of Consumer Research Around Cannabis, said the survey results show that “Denver leads Colorado Springs, 58% to 52%, in acceptance of medical and/or recreational marijuana, but the two regions reflect each other almost identically when looked at through a political lens. In both areas, nearly 75% of liberals, about 60% of independents, and roughly 35% of conservatives approve of legal usage.”

Colorado Springs is home to 725,00 adults and was rated the fourth-most conservative major city in the country in 2014, while Denver, with at population of 3.2 million adults, was rated the 19th most liberal city.

On top of high marijuana approval rates, respondents from both cities reported having similar reasons for using cannabis. More than 40% of respondents said that they used marijuana to help them sleep, followed closely by those who use it to treat chronic and recurring pain.

One notable difference in the data was the percentage of people who used cannabis to treat “temporary or minor pain” in Colorado Springs at 17.2%, making it the city’s third most important reason for using cannabis. Lumping together chronic and temporary or minor pain means that about 67% of cannabis use in Colorado is as a painkiller.

“Over the long run, It will be interesting to see how marijuana use affects sales of traditional pharmaceuticals for these kinds of ailments,” said Stein.

The survey didn’t identify how respondents consumed cannabis: whether flower, concentrate, or edible.

Colorado’s $100 Million/Month of Cannabis Sales the “New Norm”

mjbizAnother month, another record-breaking amount of cannabis sales in Colorado. The cannabis industry achieved a milestone in May, with $100 million in pot sales for the 12th consecutive month.

“I think that $100 million a month (in sales) are the new norm,” said Bethany Gomez, director of research for Brightfield Group, a cannabis market research firm.

Over 12 months, Colorado saw monthly sales reach $1.4 billion the state collected nearly $223 million in taxes and license fees. Since recreational marijuana was legalized four years ago, recreational sales have consistently counted for two-thirds of the monthly pot sales totals.

In May, recreational-use sales accounted for about $90.1 million and those from medical marijuana contributed just over $37.5 million. The industry’s 2017 cumulative sales through five months neared $620 million, generating close to $96 million in state revenue from taxes and fees.

However, Colorado is seeing a slow-down of growth in the industry as more states legalize recreational marijuana. Sales in Nevada–where dispensaries made about $3 million in sales and the state made about $1 million in tax revenue between July 1 and July 4–prompted the governor to declare a state of emergency as marijuana supplies ran dry. Recreational marijuana sales launch in California in 2018.

In Colorado, the market is still growing, but Gomez said that the market is approaching maturity.

“What you’re seeing in Colorado is similar to other industries, we’re starting to see lower double-digit growth rates, rather than the triple-digit growth rates,” she said. “That time of massive growth expansion in Colorado, I think, is over.”

Signs of market maturity includes the increased demand for concentrates and edibles, as well as a decrease in overall number of medical marijuana patients. New Frontier Data, a cannabis analytics firm, said that falling prices have reduced the incentive for patients to apply for medical marijuana prescription.

As of May 31, 2017, a total of 86,964 patients had an active medical marijuana registration, according to the Colorado Department of Public Health and Environment. A year before, that figure was 106,066.

Since recreational use began in 2014, the products that cannabis users have evolved. Consumers have shifted from dried marijuana flower to infused products, edibles, and concentrates.

“There is increased innovation in the product category, and that’s continuing,” she said. “Consumption patterns haven’t really settled in the recreational market yet; people are still experimenting. There is still a lot of room for change there.”

 

Cannabis is Quickly Becoming Colorado’s Largest Industry

marijuana-bankingA new study released by the Marijuana Policy Group shows that Colorado marijuana sales contributed $2.39 billion to the state’s economy in 2015–more taxable revenue than Colorado’s arts and sports venues combined ($777.3 million). To put those numbers in perspective, Colorado produced 112.0 metric tons of flower and 132 metric tons of flower-equivalent marijuana (concentrates, edibles).

Total 2015 numbers for the Colorado cannabis industry were $996 million in marijuana sales and $121 million in new taxes. The cannabis industry is the fastest-growing business sector in the state and has created 8,005 direct and ancillary full-time jobs in 2015.

According to the report, “each dollar spent on retail marijuana generates $2.40 in state output. This compares favorably with general retail trade, which yields $1.88 per dollar. The more traditional (and sometimes subsidized) mining sector generates $1.79 per dollar. General manufacturing generates $1.94 per dollar, and casinos generate just $1.73 per dollar of spending.

Other industries have lower output yields because their inputs are sourced from outside of the state, or because the profits are remitted to corporate owners that exist primarily outside of the state as well.”

However, the green rush won’t last forever. With more states legalizing medical and recreational marijuana, Colorado marijuana sales will reach a saturation point. The MPG report states:

“Legal marijuana demand is projected to grow by 11.3 percent per year through 2020. This growth is driven by a demand shift away from the black market and by cannabis-specific visitor demand. By 2020, the regulated market in Colorado will become saturated. Total sales value will peak near $1.52 billion dollars, and state demand will be 215.7 metric tons of flower equivalents by 2020.”

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