Cannabis sales growth in mature markets

July 7, 2022
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Mature markets that have been open for at least five years are struggling to maintain sales growth. This is because during COVID, sales were boosted in all markets as consumers were spending more time at home and less money on things like restaurants and travel. As we emerged from the pandemic, these markets have all seen significant contraction. Here we look at Colorado, Oregon, and Washington, which all saw double digit contraction YoY for January - May 2022. These trends suggest that these markets will post negative growth in 2022 (compared to 2021).

This is likely a correction towards a restabilization point. Growth rates in 2020 and 2021 were unstable and led by changing consumer trends. Much like we are seeing consumers move away from durable goods purchases and gadgets and into travel and experience spending, we are seeing decreased consumption of cannabis in many mature markets. New markets are less impacted as they are still gaining new customers, opening new stores, and are working towards saturation.