Colorado Shifts From Medical To Adult Use As Legal Market Expands

The number of licensed cannabis businesses has begun to plateau as the industry nears saturation, and operators attain efficiency and scale.

Among licensed businesses, medical cultivation facilities saw the steepest decline while adult-use processors saw the highest rate of growth in the three–year period ending June 2019.
In the same period, contraction in the medical market – for both licensed businesses and product sales – has been offset by continued strong growth in the adult-use market.
Sales of medical concentrates surged even as flower demand contracted, reflecting patients' strong interest in noncombustible products.
After the EVALI (i.e., tainted vaping) crisis of last fall (coupled with industry-wide liquidity challenges in latter 2019), demand turned from concentrates (vapes in particular) toward flower and noncombustibles, driving further consolidation in business licensing.

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