How To Open a Dispensary In Colorado

Available License Types

Coloado Marijuana History

Colorado voters passed Amendment 20 to the Colorado Constitution in 2000, which established a caregiver-patient system and permitted qualifying patients or caregivers to possess six plants or two ounces of useable marijuana for medical purposes.

In 2007, a Denver District judge ruled that a 5:1 patient to caregiver ratio violated state law. This court ruling, and the publication of the Ogden memo in 2009 (Ogden 2009), led to a proliferation of medical marijuana dispensaries operating as caregivers. In response, the Colorado General Assembly passed HB-1284, which established a framework for medical marijuana centers (dispensaries), cultivation facilities, and manufacturers of edible marijuana products.

In 2012, Colorado and Washington were the first two states to approve measures that allow recreational cultivation and use of marijuana among adults 21 of years or older within each state.

The demand for marijuana by Colorado adult residents is estimated to be 121.4 metric tons in 2014. In addition, the demand by visitors to the state is estimated to be 8.9 metric tons for a total estimated demand of 130.3 metric tons. This reflects a point estimate for the adult (21+) population only. We believe the potential range for total adult marijuana demand, including visitor demand, is between 104.2 and 157.9 metric tons.

State demand is driven by a combination of user prevalence, user frequency, and the amount of marijuana used (the dosage) each day for different user types.

There are an estimated 485 thousand adult regular marijuana users who consume marijuana at least once per month. This represents 9.0 percent of the 2014 forecast population in Colorado of 5.363 million residents (all ages). Another 201 thousand adult residents reported using marijuana within the past year, which is 3.8 percent of the state population. In addition, 184 thousand residents under 21 reported past year use, of which 59 thousand reported past-month use. The scope of this report only includes the demand from consumers who are 21 years of age and older.

The vast majority of marijuana demand emanates from the regular users—and in particular from the heavy users who consume marijuana on a near-daily basis. In Colorado, the top 21.8 percent of users account for 66.9 percent of the demand. In contrast, the entire population of rare users (less than once per month), a group that accounts for almost one-third of all users, represents less than 1 percent (0.3 percent) of total demand.

Colorado citizens voted to pass Amendment 64 to the Colorado Constitution which directed the General Assembly to enact legislation governing the cultivation, processing, and sale of industrial hemp. Legislation adopted in 2013 delegated the responsibility for establishing registration and inspection regulations pertaining to cultivation to the Colorado Department of Agriculture. The Colorado Department of Agriculture’s regulatory role with Industrial Hemp is limited to the cultivation of industrial hemp

Estimated Market Size

Colorado reported its highest-ever monthly marijuana sales figure—more than $173.2 million—in August 2019. Of these sales, recreational marijuana accounted for $141.87 million, while the remaining related to medical marijuana sales. In July 2019, the total marijuana sales figure crossed $166.3 million.

How to Start a Marijuana Business in Colorado

If you are just starting your marijuana business, the best next step is to create a Business Plan to educate your team and prepare for the marijuana business license application process.

If you are ready to apply for a Marijuana Business License in Colorado, please contact us or call our offices to set up an appointment. You can also explore other state opportunities or fill out our Contact Form to discuss strategies such as investment or partnership opportunities.