August 2024
The global colorado legal cannabis market size is calculated at USD 2.99 billion in 2025 and is forecasted to reach around USD 9.00 billion by 2034, accelerating at a CAGR of 13.00% from 2025 to 2034. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global colorado legal cannabis market size accounted for USD 2.65 billion in 2024 and is predicted to increase from USD 2.99 billion in 2025 to approximately USD 9.00 billion by 2034, expanding at a CAGR of 13.00% from 2025 to 2034. The growth of the market is driven by increased acceptance of cannabis in the medical field.
Artificial Intelligence (AI) can be beneficial in cannabis cultivation. Cannabis farms often cover large acres that need regular surveillance to ensure the security of the farm. AI-driven tools offer real-time monitoring through different video feeds. The combination of AI and machine learning (ML) monitoring systems sends an alert signal by identifying the security breach in real-time. Many cannabis growers are using AI and Machine Leaning algorithms to protect their crops. AI technology helps in improving the testing methods for cannabis. The contamination can be identified quickly through AI tools, helping farmers ensure that it is removed. This can help improve the consistency and quality of the cannabis.
AI-driven tools can analyze large datasets to identify patterns or trends to detect any contaminants or unwanted substances in cannabis. With AI technology, the genetic composition can be analyzed to identify different strains of cannabis and its applications. This can help accelerate research and development activities to find different therapeutic uses for cannabis.
Cannabis is a genus of flowering plants that has been historically utilized for various purposes throughout human history. The legalization of cannabis in the state of Colorado happened back in 2012. The Colorado legal cannabis market has been witnessing steady growth due to the rise in awareness among the population regarding the benefits of cannabis in medical use. A growing demand from consumers for cannabis for recreational as well as medicinal purposes is boosting the growth of the market. According to the Colorado Department of Revenue, in 2024, the revenue earned through marijuana sales was estimated to be USD 1.39 billion. Such a rise in sales of marijuana for medicinal and recreational purposes supports market growth.
Favorable support from the government and regulatory frameworks are important factors for the growth of this market. The Colorado State Government has been regularly funding research and development activities related to cannabis and its medicinal use. People have become more aware of the therapeutic properties of cannabis, especially for chronic health issues like cancer, neurological treatments, and anxiety & depression. Moreover, advancements in farming methods boosted the production and quality of cannabis. Key players operating in the market are focusing on diversifying their product portfolios, which sustain the market's long-term growth.
Report Coverage | Details |
Market Size by 2034 | USD 9.00 Billion |
Market Size in 2025 | USD 2.99 Billion |
Market Size in 2024 | USD 2.65 Billion |
Market Growth Rate from 2025 to 2034 | CAGR of 13.00% |
Base Year | 2024 |
Forecast Period | 2025 to 2034 |
Segments Covered | Source, Derivatives, Cultivation, End Use |
Increased Application in Medical Field
The increased application of cannabis in the medical field is a major factor driving the growth of the Colorado legal cannabis market. The legalization of marijuana in Colorado has boosted its adoption in the medical field for various purposes, such as in the management of chronic pain and in the development of medicines. With the legalization of marijuana in Colorado since 2000, access to medical cannabis has increased all over the state. A rise in the number of cases of chronic diseases across the state further boosts the demand for medical cannabis.
The growing awareness among people regarding the benefits and therapeutic properties of cannabis for different conditions like multiple sclerosis, chronic pain, cancer, and arthritis is boosting the market's growth. A survey revealed that the majority of patients in Colorado reported using it for severe pain, which accounts for 78.3% of patients in 2022. The increasing awareness of the benefits of cannabis for neurological disorders is further driving the market growth. With the growing utilization of cannabis for medical purposes across the state, the market continues to sustain its growth trajectory in the coming years.
Availability of Unregulated Cannabis
The Colorado legal cannabis market faces limitations because of the availability of unregulated cannabis. These cannabises are not compliant with regulatory frameworks and do not adhere to the rules of legalized cannabis in Colorado State. These products are available widely at cheaper prices with inferior quality. Some consumers often prefer unregulated cannabis products for the more affordable price. The heightened competition from unregulated cannabis limits the growth of this market.
Demand for Cannabis Edibles and Rising R&D
The rise in the demand for cannabis edibles, like gummies, presents new opportunities in the Colorado legal cannabis market. Many key players are focusing on research and development activities in areas such as cultivation, extraction, and quality control. With the growing awareness among people about the therapeutic benefits of cannabis, consumption of cannabis edibles is rising. This creates opportunities for key players to innovate in product development. They can create low-dose cannabis edibles that fulfill consumer's medical needs without any side effects.
The marijuana segment led the Colorado legal cannabis market with the largest share in 2024. This is mainly due to the legalization of recreational and medicinal marijuana. Technological advancements in cannabis cultivation methods further propelled the segment growth. With the increased burden of chronic diseases, there is a significant increase in the adoption rate of medicinal marijuana, which bolstered the segment.
Meanwhile, the hemp segment is expected to grow at a significant rate in the upcoming period. The growth of the segment is attributed to regulatory support for agricultural practices along with the growing demand for various hemp products. The rising awareness of the benefits of hemp further supports segmental growth. Hemp has proven effective in improving heart health and digestive health. Moreover, it is a good source of healthy fats, protein, and fiber.
The CBD segment dominated the Colorado legal cannabis market in 2024. This is mainly due to the noticeable increase in consumer awareness about the therapeutic benefits of CBD. Regulatory guidelines that support the production and sales of CBD products further bolstered the growth of this segment. A significant rise in the consumption of CBD products, like CBD oil, for medical purposes propelled the segment’s growth. CBD oil is used in various therapies for pain relief. It is also useful for relief from inflammation, depression, and anxiety.
On the other hand, the THC segment is projected to witness significant growth during the forecast period. The growth of the segment can be attributed to the rising consumer demand for THC for recreational purposes. The rise in research and development activities aimed at exploring the potential of THC for medical use further contributes to segmental growth.
The indoor cultivation segment led the Colorado legal cannabis market with the largest share in 2024. This is mainly due to the high-quality cannabis. Many growers prefer the indoor cultivation method, as it allows them to control environmental conditions. This leads to the cultivation of high-quality cannabis with improved properties. Moreover, indoor cultivation methods can lead to higher yields. Meanwhile, the greenhouse cultivation segment is expected to grow at the fastest rate during the projection period. The rapid shift toward sustainable cultivation practices is a key factor driving the growth of the segment. In addition, greenhouse cultivation methods require less energy, making it cost-effective.
The recreational use segment dominated the Colorado legal cannabis market in 2024. This is mainly due to the legalization of cannabis for recreational purposes. There has been a significant rise in the acceptance of marijuana for recreational purposes in the last few years. A regulatory framework set by regulatory agencies in the state of Colorado for recreational marijuana further bolstered the segment’s growth.
On the other hand, the medical use segment is expected to grow at a significant rate in the coming years. The growth of the segment can be attributed to the rising awareness regarding the therapeutic benefits of cannabis. Cannabis helps in chronic pain management, decreases anxiety, and reduces inflammation. Thus, it is used in therapeutics. The rising research and development activities focusing on expanding therapeutic uses of cannabis further contribute to the segment’s growth.
By Source
By Derivatives
By Cultivation
By End Use
By Region
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