WHAT YOU NEED TO KNOW

about the 2017 Colorado Marijuana Market Size and Demand Study

T
his report uses state data to provide
an updated view and assessment
of Colorado’s marijuana market
and improves upon the original 2014
market study methods. It is part of the
state’s continuous efforts to monitor a KEY FINDINGS
comprehensive marijuana regulatory
framework, specifically as it relates to
implementation of a responsible production
management model as directed by statute.
In addition, MED provides this information Meeting Resident and Visitor Demand
to improve market transparency and to Colorado’s regulated marijuana market is meeting resident
inform decision makers about the status of and visitor demand. Actual demand* is 301.7 metric tons,
Colorado’s marketplace. while consumption estimate* is 208.1 metric tons.

In first-of-its-kind methodology, the Competitive Market

study authors developed a measure called Colorado remains a highly competitive marketplace for
“flower equivalent,” which allows for a businesses. The team found that the largest 10 operators
proper comparison of supply, demand, accounted for 23.1% of total market sales in 2017.
potency and pricing across different
product types such as flower, edibles Market Share
and concentrates. The market share for marijuana flower has declined while
demand for non-flower products (such as edibles and
In 2017, regulated cultivators in Colorado
concentrates) continues to take a greater share of overall
harvested and packaged 340.7 metric tons
marijuana sales.
of flower equivalent. Figures comprised
in this number include 301.7 metric tons Improved Licensee Compliance
of demand represented by actual sales Residual marijuana has significantly decreased over the last
to consumers, 34 metric tons represents three years, which suggests improved licensee compliance.
inventory on the shelf and six metric tons
of residual marijuana. Production Management
Marijuana cultivators aren’t utilizing the maximum
authorized plant count allocations. The state’s flexible
*It’s important to understand the regulatory framework allows the state to effectively monitor
difference between actual demand production management to prevent oversupply.
(reflected through sales to the consumer)
and consumption estimate (determined Changes in Price MARKET SIZE AND DEMAND
through survey responses, demographics Prices are highest in regions with a limitedFOR
number of adult-
MARIJUANA IN COLORADO

and pre-existing literature). Consumption use marijuana stores, which suggests competition isARKET
2017 M a moreUPDATE
MARKET SIZE AND DEMAND
estimate may not account for at-home important factor for regional pricing than tourist
P demand.
C D R repared for the olorado epartment of evenue
FOR MARIJUANA IN COLORADO
inventory, may underestimate visitor Overall, price for flower has declined slowly,
2017 MARKET UPDATE
while price of a
consumption, may not fully account for standard serving of THC measurement unique to this study
has declined more rapidly.
P C D R
rising market share of edibles in addition
repared for the olorado epartment of evenue

to legally purchased marijuana illegally

crossing state lines. MARKET SIZE AND DEMAND
FOR MARIJUANA IN COLORADO
This study was commissioned by the Department of Revenue (DOR) and its Marijuana Enforcement Devisions
(MED). MED signed an Inter-Agency Agreement with the Business Research Division of CU Boulder that then
2017 MARKET UPDATE
engaged a subcontractor, Marijuana Policy Group, to assist with the project. As a part of the unique agreement, the
study authors accessed METRC data directly as their data source. Prepared for the Colorado Department of Revenue
 KEY FINDINGS AT A GLANCE
2017 Colorado Marijuana Market Size and Demand Study

PRODUCT FLOW COMPARISON POTENCY 2017

REGULATED 341
TREND 68.6%

MARKET
322
FLOWER EQUIVALENT ( METRIC TONS )
302 2015
276 2014 56.6%

IS MEETING
261 2016
230
207 2017
191 CONCENTRATE
resident 140 FLOWER
and visitor
DEMAND. 48 38
33 19 8
6
2017 19.6%

HARVEST TRANSFERS SALES INVENTORY RESIDUAL 2014 16.4%

2017 MARIJUANA DEMAND No Sales < $10 $10-$25 $25-$50 $50-$75

BASED ON SALES $75-$100

PRODUCT %
Flower Equivalent 2017
Flower 61.8% PER CAPITA
Concentrate 27.3% MONTHLY
301.7 Trim 5.7 %
ADULT
Metric Tons Infused Edibles 4.9%
USE
Infused Nonedibles .3%
SALES
TOTAL 100%

10 322,819
2017
TOP

58% Utilization
TOTAL
PLANT
OPERATORS
NUMBERS 675,005 34% Utilization

Medical
PRODUCT TYPE MARKET SHARE COMPARISON

23.1%
Adult Use

2014 2017
80 80
74.5
OF TOTAL MARKET
%
70 70
66.1% 61.2%
PERCENT OF MARKET

PERCENT OF MARKET

60 60
50 50 54.1%
40 40

HIGHLY
30 30 28.3%
20 20 23.4%
14.7% 14% 13.4% 8.8%
COMPETITIVE
10 11.6% 7.5% 10
6.2% 4.8% 6.5% 3.7%
0 0
FLOWER EDIBLES CONCENTRATE OTHER FLOWER EDIBLES CONCENTRATE OTHER
MARKET