Legal U.S. cannabis product demand remained almost flat in March
- Monthly demand for U.S. legal cannabis products remained largely steady for the month of March.
- Year-over-year demand is strong, growing by 13.6%.
- After increases in January and February, growth stumbled in March for a flat showing.
FOR IMMEDIATE RELEASE
EAST LANSING, MI—June 25, 2020—According to Anderson Economic Group’s monthly AndCan®Index, demand for legal cannabis products in the United States slowed in March 2020. 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, March numbers remained steady. AEG experts attribute the lack of growth 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: “We expect to see dampening effects from the ongoing COVID-19 outbreak for the next several months,” he explained. “The outbreak will continue to suppress market growth while the disease hampers consumer mobility and sociability.”
Cosguner, who oversees the AndCan®Index for Anderson Economic Group, is available for comment and further analysis by contacting AEG at 517.333.6984.
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 recently recognized the superior quality of this work by awarding Patrick L. Anderson a 2019 “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.