After enjoying a sales surge during the pandemic, the U.S. cannabis industry is showing signs of a slowdown as it faces economic and regulatory challenges and people choose to spend their money elsewhere.

In states with established marijuana markets such as Oregon and Washington, sales at retail outlets and dispensaries have declined from a year ago, according to a report from cannabis data firm Headset. In Colorado, one of the country’s most established markets, sales in June were down 11.4% from a year ago.

“What we saw in 2020 was a massive spike in sales tied to the pandemic as people stayed home, had government stimulus money, and not a lot to do,” said Chris Wash, CEO of Marijuana Business Daily.

Between March 2020 and March 2021, average monthly year-over-year sales were up 25.8% in Colorado, according to Headset. But as the pandemic began easing last summer, the report found, both the frequency of marijuana purchases and the amount of money people spent began declining.

In July, for example, people spent an average of $55.21 per visit at the median Colorado store. That was about $4 less than the average of $59.73 in July 2021, according to Headset research.