January 2021 legal U.S. cannabis product demand continues new, more even growth pattern
- In January, monthly demand for legal cannabis products in the U.S. increased 1.4%.
- The growth rate in year-over-year demand continues to be strong at 24.3%.
- While there was a slight decrease between December and January, demand growth remains higher than it was last fall.
EAST LANSING, MI—April 8, 2021—Anderson Economic Group’s monthly AndCan®Index indicates that January’s growth in demand for cannabis products in the United States was slightly lower than it was in the previous month. However, the recent trend of more even growth continued; a departure from the rapid increases last spring and summer and the slowdown in the fall. AEG’s experts develop this monthly measurement by closely following 50 state trends for both the recreational and medicinal marijuana markets. Monthly calculations are based on benchmarks developed when AEG first began assessing the market in 2015.
Kenan Cosguner, AEG’s lead analyst for this market, anticipates that cannabis product demand will continue to rise, fueled by the COVID-19 relief stimulus that passed in March. “Last spring, we saw that the surge in cannabis product demand closely tracked with the onset of the pandemic and the passage of the initial federal relief program,” explains Cosguner. “Since millions of Americans began receiving stimulus payments in mid-March, a corresponding acceleration in demand growth is likely in March and April.”
Cannabis product demand increased nationwide from December to January; however, sales trends varied from state to state. Illinois, for example, saw cannabis sales grow 2% and Michigan experienced 9.5% growth. Conversely, sales decreased slightly in Massachusetts.
For additional insight regarding AEG’s AndCan® Index and trends in the legal cannabis space, contact our industry experts online or at 517.333.6984.
Cannabis in the News
On March 31, New York State legalized marijuana for recreational use by adults over the age of 21. While sales have not yet begun, possession of three ounces or less of cannabis is legal immediately. Unlike many other legalized states, New York will allow individuals to smoke marijuana in public areas where tobacco smoking is permitted. The new law will also make the state’s medical marijuana program less restrictive.
A bill to legalize medical marijuana has made it to the South Carolina Senate floor. The Republican sponsor of the bill, Sen. Tom Davis, is optimistic about the bill passing into law. To gain support from more conservative lawmakers, the bill does not allow medical marijuana to be consumed through smoking.
The New Mexico Legislature has voted to legalize recreational marijuana and automatically expunge prior convictions related to marijuana. Governor Michelle Grisham, who initiated a special session of the state legislature to pass marijuana reform, has said she will sign the bill into law.
About the AndCan® Index
Launched in June 2017, the monthly AndCan Index reflects observed demand from U.S. states with legalized markets, along with estimated latent demand in states without legal markets or lacking credible sales data. Both medical and adult-use products are included.
The AndCan Index builds upon:
- Over six years of analysis of the U.S. cannabis market by Anderson Economic Group consultants.
- A rigorous methodology that was presented in an award-winning 2020 article in the journal Business Economics.
- More than two decades of relevant experience with alcoholic beverages, franchised industries, and public policy.
Current benchmark: The AndCan Index is currently on the March 2019 benchmark, which reflects several methodological and data improvements over the 2017 benchmark. We expect to complete a 2021 benchmark revision in the coming months.
About Anderson Economic Group
Since its founding in 1996, Anderson Economic Group has become one of the nation’s premier boutique consulting firms, specializing in business valuation, expert testimony, and public policy. AEG has assisted governments, universities, large corporations, and businesses across the U.S. and abroad. All of the firm’s work is grounded in the core values of professionalism, integrity, and expertise.
AEG has offices in East Lansing, Michigan and Chicago, Illinois.
Lisa Wootton Booth
AEG—East Lansing, Michigan