Colorado’s Market in 2024: A Year of Stability and Regulatory Adjustments
Colorado’s industry remained a billion-dollar powerhouse in 2024, with total annual revenue surpassing slightly edging New Mexico with $1.3 billion. While the market showed signs of stability, it also experienced ongoing shifts, particularly with the continued decline of medical sales, steady recreational demand, and new regulatory changes aimed at streamlining the industry.
Recreational Market Dominates as Medical Sales Shrink
Adult-use purchases accounted for the majority of revenue, reaching $101.2 million in December, nearly 89% of total sales that month. The peak for the year occurred in March, with $111.5 million in retail sales. In contrast, medical sales continued to decline, dropping from $15.2 million in January to $12.3 million in December. The trend mirrors other mature markets, where consumers opt for recreational purchases instead of maintaining medical cards.
County-Level Breakdown: Tourism and Border Towns Thrive
Denver remained the top-performing county, generating $27.6 million in combined sales, followed by El Paso ($9.3M), Arapahoe ($12.3M), and Boulder ($7.1M). Mountain and resort areas saw strong sales from tourism, with Summit ($1.7M), Pitkin ($826K), and Eagle ($1.5M) ranking high. Rural counties such as Sedgwick, Montezuma, and Las Animas benefited from out-of-state customers, each surpassing $1 million in retail sales.
Legislative and Regulatory Updates in 2024
Colorado introduced several new regulatory changes in 2024, focusing on business efficiency, consumer safety, and industry sustainability.
Biennial Licensing: As of August, the state shifted from annual to biennial license renewals, reducing administrative burdens on business owners.
Product Sourcing Flexibility: Cultivation facilities can now source immature plants, seeds, and genetic material from approved out-of-state sources, promoting genetic diversity.
Consumer Safety Measures: Retailers must now provide educational materials with concentrate sales and display pregnancy warnings at the point of sale.
Local Licensing Adjustments: Pagosa Springs and Archuleta County updated policies, allowing greater flexibility in sourcing from local growers and aligning local licenses with state requirements.
Looking Ahead: The Impact of Federal Rescheduling
A major development in 2024 was the federal push to reclassify from Schedule I to Schedule III, a move that could reduce tax burdens on businesses and expand research opportunities. If finalized in 2025, this change may significantly alter industry dynamics in Colorado, impacting everything from banking regulations to insurance policies.
Conclusion
Colorado’s market remains a cornerstone of the industry, balancing stability with adaptation to regulatory shifts. While medical sales continue to decline, strong recreational demand, particularly in tourism-driven areas, ensures steady revenue. The state's updated policies, coupled with potential federal changes, signal a new phase of evolution for Colorado’s industry heading into 2025.
