Colorado: Cannabis Purchasing Trends Suggest Switch From ‘Consumer’ To ‘Patient’ Amid COVID-19

By GreenWave Advisors’ Matt Karnes.

The state of Colorado released its marijuana tax revenues for July which implies total monthly sales of $206.7M (+ 7% MoM; 20% YoY) with medical marijuana revenues at $42.4M (+4% MoM; 42% YoY) and recreational use ~$164.2M (+8% MoM; 16%YoY). We estimate that the average cardholder spend in the month ticked up to ~$510 from ~$490 in June ($338 July ’19). The number of cardholders at month end remained flat from June at ~83K but up from ~80K since the pandemic hit. (NOTE: Not every registered cardholder will make purchases in any given month, in fact some states have revealed active patients at ~70-75% thus the estimated average cardholder spend per month could be understated given that the denominator in our calculation is likely lower.)

Since the COVID-19 pandemic took its hit on the economy, The US Cannabis industry has proven remarkably resilient with a surprising resurgence in Colorado, from what had been considered a mature market (6+ years since recreational use was introduced).

Earlier this year, we suggested that as the economy worsens and disposable income …

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