Cannabis Sales Slowed Ahead of the Summer – New Cannabis Ventures

The weakening growth trends in May that we discussed last month continued in June, according to cannabis data analytics firm BDSA. The comparisons to a year ago, when demand surged during the pandemic, have created challenges, with two states, Colorado and Oregon, seeing sales decline compared to then. Most of the markets saw a sequential decline, with some in excess of the 3.2% due to one less day in the month than in May. In this review, we will look at the markets one-by-one, beginning with the more mature Western markets and then concluding with the newer Eastern markets.

Western Markets

BDSA provides coverage for Arizona, California, Colorado, Nevada and Oregon. In April, growth ranged from -3%% in Colorado to 29% in Arizona compared to a year ago.

Arizona

Arizona transitioned to adult-use in late January, but this is the third month that BDSA included adult-use sales. Total cannabis sales grew 29% to $117.9 million, with adult-use representing $53.7 million, down slightly from May. Medical cannabis sales fell 30% to $64 million. Sequentially, overall growth fell 7.1%, with medical falling 4% and adult-use decreasing 0.4%. Growth was strong across all categories, but the highest growth by far was in pre-rolls, which gained 184%.

California

Annual sales grew 13.8% to $331.8 million, down 5% from June and 7% from the record level in April. Flower expanded 8%, with low double-digit growth for ingestibles and concentrates, while pre-rolls expanded by more than 50%.

Colorado

The mature market of Colorado, which has shown vigorous growth over the past year, declined 5% compared to a year ago. Last June, sales had grown 30.4%, so compared to two year ago, sales expanded 23.9% (11.3% compound growth). Sequentially, sales dropped 5.3% to $190.5 million.

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