April 2020 legal U.S. cannabis product demand increases 3.6%
- Monthly demand for legal cannabis products in the U.S. increased by 3.6% in April.
- Year-over-year demand is strong, showing a 16.3% growth rate.
- After slowing down in March, the growth trend rebounded in April.
FOR IMMEDIATE RELEASE
EAST LANSING, MI—July 15, 2020—According to Anderson Economic Group’s monthly AndCan®Index, demand for legal cannabis products in the United States rebounded in April 2020 after flat growth in March. 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.
While the legal cannabis market showed steady growth through most of 2019 and experienced a strong start in 2020, demand held steady in March before the growth trend resumed in April. AEG experts attribute the swing in demand to factors related to the COVID-19 pandemic.
Anderson Economic Group’s lead analyst for this market, Kenan Cosguner, expressed confidence in a return to strong growth trends in the long term. Cosguner indicates caution in the near term, however: “The COVID-19 outbreak is causing instability in the short-term, with some states experiencing record growth and others, steep decline,” he explained. “The outbreak’s impacts will continue to vary from state to state and will also be influenced by the scope of federal stimulus and relief programs.”
For example, while recreational sales soared 40% in Oregon from February to April, they fell 30% in Nevada. For more details, see Anderson Economic Group’s recent release on COVID-19’s impact on cannabis demand.
Cosguner, who oversees the AndCan®Index for Anderson Economic Group, is available for comment and further analysis by contacting AEG at 517.333.6984.
CANNABIS IN THE NEWS
- Delays in Missouri’s medical marijuana dispensary process frustrate patients, businesses
Missouri is one of several states experiencing delays in legal cannabis program roll-outs. Although dispensaries there were classified as essential businesses, none have opened yet, and the state has only approved two cultivators to begin growing.
- Medical marijuana, gambling likely headed to Nebraska ballot
With 182,000 signatures, a proposal to legalize medical cannabis in Nebraska will likely appear on the November ballot.
- June was the best month yet for Illinois marijuana dispensaries
With a record $47.6 million in sales in June, the rapid growth of Illinois’s newly-opened cannabis market is helping to offset some of the lost tax revenue caused by COVID-19.
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 National Association of Business Economists has recognized the superior quality of this work by honoring Patrick L. Anderson with a “Best Contributed Paper” award for the manuscript “Blue Smoke and Seers: Measuring Latent Demand for Cannabis Products in a Partially Criminalized Market.” This paper, now available online in the journal Business Economics, documents the methodology and challenges faced in development of the AndCan®Index.
The AndCan®Index builds upon:
- Over three 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 award-winning technical papers and 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 a number of 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.
CONTACT: Lisa Wootton Booth
AEG—East Lansing, Michigan
LWBooth (at) AndersonEconomicGroup.com
Members of the media are invited to request early (24 hr) access to these monthly releases by contacting lwbooth (at) andersoneconomicgroup.com. Requests will be evaluated on a case-by-case basis.