DENVER — For the first time since marijuana was legalized in Colorado, sales in Denver have declined for three straight years.
The drop in sales was a point of emphasis in the city’s annual marijuana report, which was released this week.
According to the report, 2023 sales of retail and medical marijuana were $71 million lower than 2022, marking a 14% decline.
“I think it always has to be a little bit of a concern,” said Ashley Chubin, with JARS Cannabis. “As the industry is shifting, we really have to be prepared for what is next.”
Sales at JARS remain strong but have fallen off from record-setting levels during the pandemic, Chubin said.
She blamed the economy and an increase in legalization. Across the nation, 24 states have legalized recreational marijuana use.
“Being able to have customers that are coming in from other states, we’re really only seeing it now at 16th Street,” she said. “We’re just not seeing it anymore, people are spending not as much, and they’re not coming as much.”
Nationally, cannabis use remains at historically high levels, according to a report released Thursday by the federal government. That report shows 42.4% of young adults reported cannabis use in the past 12 months.
The report has Chubin optimistic that Colorado consumers will continue to provide strong business.
“We want them to feel like family here, and I think that really comes through in our culture at JARS,” she said.
The declining sales will also have an impact on Denver’s budget, which relies on marijuana tax revenue to fund things like homelessness services, affordable housing and education.
Cannabis revenue in 2023 was reported at $48.1 million, down $8.1 million from the year before.
JARS recently was named Denver’s 1st Cannabis Cares Champion, and Chubin said she worries they won’t be able to do as much good if numbers continue to fall.
“When we have these decreases in sales, we can’t be in the forefront of helping this community, and that’s a huge thing that our money has been able to do good for,” she said. “And we’re in the business of happy customers, happy community, so happy sales, too.”