Is the Colorado marijuana market shrinking? Absolutely. It was inevitable as more and more states legalized adult use of THC. Initially, tourists were flocking to Colorado to purchase and consume marijuana legally. However, as legalization expanded across the country, many of those out-of-state buyers disappeared, taking a significant portion of the market with them. The industry blames stricter regulations for their declining sales instead of the obvious shift due to market saturation and increased out-of-state competition. Additionally, as early as 2022, Coloradans began reporting concerns about their personal increased drug and alcohol consumption.