July 2020 Legal Cannabis Product Demand Continues to Grow
- Monthly demand for legal cannabis products in the U.S. increased by 3.7% in July.
- Year-over-year demand is strong, showing a 22.0% growth rate.
- The growth rate increased from June to July, continuing a trend that began in the spring.
FOR IMMEDIATE RELEASE
EAST LANSING, MI—October 6, 2020—According to Anderson Economic Group’s monthly AndCan® Index, growth in demand for legal cannabis products in the United States in July was higher than the previous month, continuing a trend of elevated growth that began in April. 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, cautioned that the continuation of this rapid growth trend is uncertain. “Federal stimulus payments and supplemental unemployment insurance likely supported increased spending on cannabis,” he explained. “Now that federal COVID-19 relief programs have mostly ended, it’s possible that demand growth rates will return to pre-pandemic levels.”
In addition to factors related to COVID-19, cannabis demand growth has also been driven by new recreational markets in Illinois and Michigan. July recreational cannabis sales were nearly 30% higher than the previous month in both states.
For additional insight regarding AEG’s AndCan® Index and trends in the legal cannabis space, contact our industry experts at 517.333.6984.
Cannabis in the news
Ballot Initiative 190 Proposes Legal Recreational Marijuana
An initiative on the ballot in Montana this November could lead to legalization of recreational marijuana in the state. The initiative would also impose a 20% excise tax on marijuana sales. Residents would also be able to grow up to four plants on their property.
Nebraska medical marijuana supporters to try, try again
In September, Nebraska’s Supreme Court struck down a medical marijuana legalization proposal that was scheduled to appear on the ballot this fall, but activists there are already planning a push to get legalization on the ballot in 2022.
Adult-use marijuana legalization in New Jersey expected to ignite domino effect
Should New Jersey’s voters approve the state’s recreational marijuana referendum next month, industry insiders expect it will increase pressure on surrounding states like New York, Pennsylvania, Connecticut, and Rhode Island to follow suit or risk losing out on cannabis tax revenues.
Vermont finally OKs retail cannabis stores, years after legalizing
Vermont legalized the growth, possession, and use of recreational marijuana in 2018 but did not establish a dispensary system. The state legislature has passed a bill that would allow for the sale of adult-use cannabis, although the deadline for final rule approval is not until March 1, 2022. The first stores are required to open by May 1, 2022. July
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. We 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.