Denver’s Green Rush Fizzles: The First Recession Hits Hard

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Denver, the cannabis capital that once led the charge into legalization, is facing a stark new reality: the city’s marijuana industry is experiencing its first recession since weed went legit 11 years ago. For a decade, the Mile High City was the promised land—a beacon for cannabis enthusiasts across the nation. Now, as recreational marijuana markets have popped up in more states, Denver’s gold rush is slowing down, and the industry is feeling the crunch.

Post-Pandemic Hangover: The Decline of Denver’s Weed Market

After the boom brought on by the pandemic—when everyone was stuck at home and buying weed like it was toilet paper—the post-COVID years have painted a different picture. According to the City and County of Denver, gross sales for both medical and retail marijuana have taken a nosedive since 2020. It’s not just a dip; it’s a trend that’s hitting hard, especially for those who built their livelihoods on the back of Colorado’s once-thriving market.

Eric Escudero, spokesperson for the Denver Department of Excise and Licenses, confirms the reality that’s starting to hit every dispensary owner in town: consolidation or closure. Businesses that once thrived are now either merging to survive or shutting their doors for good.

The Cannabis Spa: A Final Push for Innovation?

Take Pure Elevations Cannabis Spa and Salon, for instance. The city’s first business to merge cannabis sales and consumption on-site, it’s also the state’s first marijuana consumption spa. Owner Rebecca Marroquin launched this bold venture—letting customers incorporate cannabis into massages, nail treatments, and hair services—as a way to adapt to Denver’s shifting market. But even Pure Elevations is feeling the pressure.

“We are here. We are open. It has been exciting yet scary,” Marroquin says. And you can’t blame her—diving into such an ambitious concept in a declining market is a double-edged sword.

Changing Tides: The End of Cannabis Tourism in Denver?

The real twist here? Legalization isn’t the magic bullet it once was. Escudero points out that Denver’s once-booming cannabis tourism market is dwindling. Why travel to Denver to get high when you can do it legally in your own backyard? As more states across the U.S. opened their own dispensaries, the allure of Denver as a cannabis haven started to fade.

Fewer out-of-state buyers mean less foot traffic, less cash flow, and ultimately, fewer opportunities for businesses to thrive. “Businesses are going to have to adapt,” says Escudero. And that’s putting it lightly.

$180 Million and Counting: Still Not Enough

Denver’s cannabis industry brought in $180 million in just the first seven months of 2024, but those numbers don’t tell the whole story. Even with millions on the books, the overall market has contracted, and for many, the margins just aren’t there anymore. The competition is fierce, and with increased licensing fees, taxation, and oversaturation, only the strong—or the most creative—will survive.

Adapt or Die: What’s Next for Denver’s Weed Industry?

So, what does this all mean? Denver’s cannabis industry needs to pivot, and fast. The old ways of slinging flower aren’t cutting it anymore. Whether it’s creating innovative experiences like cannabis spas, expanding product lines, or finding new ways to draw in locals, adaptation is the only way forward.

Denver’s cannabis dream hasn’t burned out, but the city’s industry is at a crossroads. Either innovate, diversify, and push the boundaries like they did 11 years ago, or become another relic of the past—a reminder of the first green rush that couldn’t sustain its high.

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