August 2020 legal U.S. cannabis product demand sees continued growth
- U.S. monthly demand for legal cannabis products increased 1.5% in August
- The year-over-year growth rate in demand remains strong, at 22.8%.
- The growth rate decreased from July to August, marking a slowdown in the recent trend of rapid monthly growth.
EAST LANSING, MI—November 10, 2020—According to Anderson Economic Group’s monthly AndCan®Index, August’s growth in demand for legal cannabis products in the United States was slower than the previous month, possibly marking the end of a trend of elevated growth that began in April. AEG’s experts produce this monthly measurement by closely following trends in all 50 states 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 rapid demand growth in the spring and early summer was expected to be a short-term phenomenon. “Federal stimulus payments and supplemental unemployment insurance likely contributed to the surge in cannabis demand that began last spring,” he explained. “Now that these relief programs have mostly drawn to a close, it appears that demand growth may be returning to pre-pandemic levels.”
One indication of the slow-down in overall monthly demand growth is that some states saw cannabis sales decline in August. In Colorado, for example, recreational cannabis sales decreased approximately 4% from their all-time high the previous month–the first time the state has seen a month-to-month sales decrease since March.
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
Voters Approve Cannabis Legalization in Five States
Voters approved a substantial expansion to the U.S. legal cannabis market, as cannabis legalization ballot initiatives succeeded in five states. Recreational cannabis legalization passed in Arizona, Montana, and New Jersey, while Mississippi voters approved a medical cannabis legalization proposal. South Dakota made history as the first state to approve legalization of both medical and recreational cannabis at the same time.
The election results represent a significant milestone for the cannabis industry: one of every three Americans now lives in a state that has legalized recreational cannabis. The impacts will likely ripple beyond the five states where ballot initiatives passed last Tuesday. For example, recreational cannabis legalization in New Jersey will likely put additional pressure on neighboring New York and Pennsylvania to follow suit or risk losing tax revenues as their residents cross the border to purchase legal cannabis. Meanwhile, the success of ballot initiatives in Montana and South Dakota reflect changing attitudes towards recreational cannabis even in relatively conservative states, which may affect the political calculus of elected officials elsewhere.
For more election insights, watch https://newfrontierdata.com/2020-election/ for details on an upcoming webinar featuring AEG’s Patrick Anderson on November 18.
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