Demand growth continues through October 2020
- In October, monthly demand for legal cannabis products in the U.S. increased by 0.9%.
- At 24.1%, year-over-year demand growth remains strong.
- The growth rate increased slightly from September to October, but remains slow compared to spring and summer.
EAST LANSING, MI—January 14, 2020—According to Anderson Economic Group’s monthly AndCan®Index, growth in demand for legal cannabis products in the United States in October was slightly higher than the previous month but continued a new trend of slow growth markedly different from rapid rise in sales seen in the spring and early summer. AEG’s experts produce 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.
Anderson Economic Group’s lead analyst for this market, Kenan Cosguner, noted that the substantial growth in cannabis demand earlier this year was likely fueled in part by federal relief programs passed in response to the COVID-19 pandemic. As those programs drew to a close, growth in demand for cannabis products began to return to pre-pandemic levels. However, the new COVID-19 relief bill passed in late December may lift demand for cannabis in the coming months. “The surge in demand for cannabis products we saw last spring and summer faded as federal COVID-19 relief programs ended,” he explained. “Now that expanded unemployment insurance has been extended and a new round of stimulus payments are being issued, we may see demand growth quicken again.”
While demand for cannabis products nationwide increased from September to October, sales trends varied from state to state. For example, cannabis sales grew by 11% in Illinois and 8% in Massachusetts but decreased slightly in Colorado and Michigan.
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
- Florida Medical Marijuana Bill Would Reduce Patient Doctor Visits to Once a Year
Medical cannabis patients in Florida must currently visit their doctor twice per year to remain on the medical cannabis registry. A new bill would reduce that number to once per year for most people, while increasing the maximum amount doctors can prescribe from a seven month supply to a supply of 350 days.
- Continuing Delays in Legislation Mean New Jersey May Not Have Legal Recreational Marijuana in 2021
New Jersey voters approved recreational cannabis legalization in November, but the enabling legislation has been delayed. Governor Phil Murphy announced last month that he wanted to see changes before he would sign the bill.
- Marijuana Legalization Looms in New York as Deficit Balloons
With Democrats in control of both chambers of the state’s legislature, New York may legalize recreational cannabis in 2021. However, legislators in support of legalization will first have to agree on how cannabis tax revenue would be allocated.
About the AndCan Index
Launched in June 2017, the AndCan Index reflects observed demand from U.S. states that have legalized cannabis and estimates latent demand in states where data on observed demand are unavailable.
The AndCan Index builds upon:
- Over four years of comprehensive coverage of the U.S. legal cannabis market and assessments of demand by Anderson Economic Group;
- A rigorous methodology that has been presented in technical papers at two professional economics conferences; and
- More than two decades of business consulting experience worldwide.
Comments from other professional economists have been incorporated into the AndCan Index, as has additional research by Anderson Economic Group consultants.
In March 2019, Anderson Economic Group released the 2019 benchmarked AndCan Index, which included several methodological and data improvements. They added data for a number of states that were not included in the original index and updated the AndCan methodology to take advantage of new data.
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 based on 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