- The demand for legal cannabis products in the U.S. increased 0.6% in January.
- Cannabis product demand is up 21.3% from January 2018.
- Last month, we released the 2019 benchmarked version of the AndCan™ Index.
FOR IMMEDIATE RELEASE
EAST LANSING, MI—April 1, 2019—According to the monthly AndCan Index, demand for legal cannabis products in the United States rose by 0.6% in January 2019. The AndCan Index closely monitors demand across every U.S. state.
Growth in demand slowed slightly in March, but cannabis demand has experienced sustained growth over the last year. In 2018, one recreational market and three medical markets came online. Three recreational markets (Vermont, Michigan, and Maine) have their first legally-operated dispensaries pending. Meanwhile, patients in Arkansas, Louisiana, Missouri, North Dakota, and Pennsylvania are anticipating the opening of medical dispensaries this year. We expect more growth as individuals and patients in these states gain access to cannabis products in the coming months.
In other developments, the Georgia Senate passed a law that would provide a legal avenue for patients to purchase low-potency medical marijuana oil, while a bill that would legalize recreational marijuana collapsed on Monday. A push for New York to legalize recreational marijuana also stalled, and Governor Cuomo removed an allowance for cannabis revenue from his executive budget, citing uncertainty in the legislative process.
“While we saw some negative news for the legalization process this week coming out of New Jersey and New York, I anticipate that cannabis demand will still be strong. Many markets are slated to open this year. Additionally, marijuana legalization is a challenging issue; I expect that New Jersey and New York will eventually legalize recreational cannabis,” said AEG Senior Analyst Brandon Betz, who oversees the AndCan Index.
Reported Growth: January’s growth in U.S. demand for cannabis products follows a trend of sustained growth.
About the AndCan Index
Launched in June 2017, the AndCan Index reflects observed demand from states that have legalized cannabis and estimates for latent demand for states in which data on observed demand are unavailable. It builds from three years of comprehensive coverage of the U.S. cannabis market and assessments of demand by Anderson Economic Group; a rigorous methodology that has been presented in technical papers at two conferences of professional economists; and more than two decades of business consulting experience worldwide. Comments from other economists from these conferences, as well as additional research by Anderson Economic Group consultants, have been incorporated into the AndCan Index.
In March 2018, 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 its core values of professionalism, integrity, and expertise.
AEG has offices in East Lansing, Michigan and Chicago, Illinois.