Why are pot sales falling?
New papers from data firms Headset and BDSA found a slowing of growth and even falling sales in some segments of the industry.
- In a study of California, Colorado, Oregon, Nevada and Washington, Headset sees a “general slowdown across most markets.”
“Investigating potential reasons for the declines did not provide a single “smoking gun” reason,” Headset says…”[One] possible explanation for the slowdown in sales in the US is the reopening of the economy, which has led to less leisure time for many people. This appears to be supported by store traffic being down more than the other metrics. There is evidence of this outside of the cannabis industry.”
- The slowdown may also owe to “unusually robust sales” earlier this year, fueled by stimulus payments.
Headset found the slowdown reversed itself in July.
BDSA breaks it down for eight key states.
Get granular with BDSA and Headset.
Related: Sales rose in many states during Covid, a study found.