The legal cannabis market continues to evolve, and a recent report from Beacon Securities sheds light on the current state of affairs in two key states: Colorado and Connecticut. While both states have seen growth in the sector, they also face unique challenges, highlighting the complex nature of this burgeoning industry.
Colorado: Steady Growth Despite Slight Monthly Dip
In August, Colorado’s legal cannabis sales reached $122 million, holding steady month-over-month but marking a decline of 8% compared to the same period last year. However, looking at a broader quarterly perspective, sales from July to August reached $245 million, representing a 5% increase compared to the April-May period. This indicates a positive trend in overall revenue despite some fluctuations.
The Colorado Department of Revenue (CDOR) reported 673 adult-use dispensaries operating in the state by the end of August. While the average revenue per dispensary has slightly decreased to $162,000, this represents an annual revenue of approximately $1.9 million per dispensary. The year-over-year decline in revenue per dispensary has slowed, partially attributed to a 2% reduction in dispensary count since January. Companies with notable operations in Colorado include Schwazze (SHWZ) and The Cannabist Company (CBSTF).
Connecticut: Mixed Signals in a Young Market
Connecticut’s legal cannabis market is still relatively new, and its sales figures reflect this. In September, sales reached $23.4 million, representing a 9% decrease month-over-month and a 7% decline compared to September 2023. However, on a quarterly basis, sales totaled $74 million in Q3 2024, indicating a 2% increase from Q2 2024.
With 51 dispensaries operating by the end of September, the average revenue per dispensary was $460,000 per month, a 14% decrease from August. This indicates some challenges for dispensaries in the state. Prominent companies operating in Connecticut include Curaleaf (CURLF), Green Thumb Industries (GTBIF), Trulieve Cannabis (TCNNF), and Verano Holdings (VRNOF).
Key Takeaways:
The data from Colorado and Connecticut reveals a nuanced picture of the legal cannabis market. While some states experience steady growth, others face challenges as they navigate the complexities of regulations, competition, and consumer demand. The report highlights the importance of analyzing both monthly and quarterly figures to gain a comprehensive understanding of the trends shaping this dynamic industry.