Legal cannabis product demand continues to grow in December
- Monthly demand for legal cannabis products in the U.S. increased by 2.4% in December.
- Year-over-year demand is strong, showing a 24.4% growth rate.
- The growth rate increased in December after relatively slow growth in the fall.
EAST LANSING, MI—March 9, 2020—According to Anderson Economic Group’s monthly AndCan®Index, growth in demand for legal cannabis products in the United States picked up in December after several months of slow growth in the fall. 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 quickening growth in cannabis demand may continue into 2021 due to the personal income boost resulting from stimulus payments provided through the COVID-19 relief bill passed in late December. “We saw a surge in demand for cannabis products coinciding with the onset of the pandemic and the passage of initial federal relief programs last spring,” he explained. “Given that the December relief bill provided new stimulus checks and extended expanded unemployment insurance, and that new stimulus measures are currently being considered in Congress, we may see demand growth accelerate in 2021.”
While demand for cannabis products nationwide increased from November to December, some states saw higher growth than others. For example, while Colorado’s recreational cannabis sales grew by 6%, Massachusetts, Michigan, and Illinois all saw growth in the double digits.
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
Medical marijuana dispensaries get permission from General Assembly to sell unprocessed flower
After expanding its limited-THC medical program last summer, the Virginia General Assembly has passed a bill legalizing the sale of botanical cannabis. The products will be available for sale beginning July 1. Legislators are also moving forward with bills that would allow for telehealth and make obtaining the medicine easier for those in assisted living facilities.
Marijuana Is Legal in New Jersey, but Sales Are Months Away
Several months after voters approved recreational cannabis legalization at the ballot, New Jersey Governor Philip Murphy signed legislation on February 22 to allow legal sales. The governor expects the legal market to launch in a matter of months.
‘It’s coming’: Minnesota recreational marijuana bill passes first-ever legislative committee
For the first time, a recreational cannabis bill has passed out of committee in the Minnesota state legislature, making it through the House Commerce committee on a party-line vote. However, the prospect of legalization faces strong headwinds from Republicans in the state Senate who have signaled their opposition to the bill.
About the AndCan® Index
Launched in June 2017, the monthly AndCan Index reflects observed demand from U.S. states with legalized markets, and 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 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