Why it matters: The cannabis industry in Colorado, once flourishing, is now facing a downturn post-pandemic. Small and large businesses alike are struggling to survive due to factors such as oversupply, lack of demand, and intense competition from other states.
What they are saying: Local entrepreneur Renée Grossman stated that there are too many stores, cultivators, and products in Colorado, leading to business closures and layoffs. Truman Bradley, executive director of the Marijuana Industry Group, believes that the only way for the industry to survive is for competition to be thinned out, and calls on state lawmakers to reevaluate legalization.
The big picture: The decline of the cannabis industry in Colorado is causing ripple effects in the real estate market and job market. The rise of recreational cannabis in neighboring states is also posing a challenge to Colorado businesses.
What to watch: The situation in Colorado could serve as a warning for other states looking to legalize recreational cannabis. As the novelty of legalization wears off and competition increases, businesses need to adapt to survive. Investors may start to look for opportunities to purchase struggling businesses and merge them with stronger players.
My take: The cannabis industry is still relatively new, and there are bound to be ups and downs. However, the downturn in Colorado serves as a reminder that businesses need to be prepared for market changes and competition. As more states legalize recreational cannabis, businesses will need to differentiate themselves and find ways to stay relevant.
