The Colorado Sun
Colorado’s legal marijuana industry is weathering its first sustained downturn since dispensaries began selling recreational weed in 2014.
Dispensaries are closing. New ventures, like delivery services and social clubs, are struggling. Tax revenues are plummeting. And across the industry, layoffs are sending marijuana workers packing. Colorado’s green boom is beginning to bust as more states legalize the sale and use of marijuana and inflation pinches spending.
The contraction is proving a rare vulnerability for cannabis, which seemed immune to downturns as it soared every year since 2014 — reaching $2.2 billion in sales last year.
“More people are going to get laid off. We are probably going to see more small shops close down and a lot of brands are going to go away,” said Spencer Ward, a longtime salesman for Bronnor Corp., which manufactures edibles and infused products for brands that are in 400 stores.