The beat goes on.
For the third month in a row, and fourth time in the last five months, Colorado has set a new monthly record for cannabis revenues.
The $173.2 million in cannabis sales recorded in August blew past July’s previous record of $166.3 million by an impressive 4 percent. Most of this success is attributed to the “recreational” half of the Colorado cannabis market.
Recreational sales hit a new record in August at $141.87 million, and now officially account for 80 percent of the overall Colorado cannabis market. However, as The Seed Investor has previously explained, a significant portion of “recreational” cannabis purchases are now being made by “medicinal” consumers.
Experienced medicinal consumers can still obtain their “medicine” from recreational outlets. But these cannabis stores typically offer much greater product variety.
Thus the continuing explosion in Colorado cannabis sales is still being fueled by both the medicinal properties of cannabis and its feel-good properties as a recreational drug.
For cannabis investors, what is exciting here is how fast Colorado’s cannabis industry is continuing to grow, given that it was already the world’s most-successful cannabis industry. In terms of the size of its industry (per capita) and its success in eliminating the cannabis black market, Colorado is leading the way.
It was only in July 2019 that legal cannabis officially became a $1 billion (per year) industry in Colorado. But the record revenues in August now project to over $2 billion per year. And given how the state is setting new sales records, $2 billion in revenues looks like a very conservative projection for Colorado over the next 12 months.
Cannabis is an emerging industry. Cannabis is a high-growth industry. The latest revenue record out of Colorado adds emphasis to both of these points.