- The demand for legal cannabis products in the U.S. declined 1.1% in November.
- Cannabis product demand is up 11.6% from November 2018.
- The AndCan Index is constructed using calculations for all 50 states.
FOR IMMEDIATE RELEASE
EAST LANSING, MI—February 5, 2019—The demand for legal cannabis products in the United States declined by 1.1% in November 2018, according to the monthly AndCan Index, which closely monitors demand across every U.S. state. This marks the largest reduction in U.S. consumer demand for cannabis products since November 2017 and is indicative of a seasonal trend experienced in years prior.
Growth in consumer demand for cannabis products has slowed over the last four months. While new markets are opening and state regulatory structures are being put in place, analysts note that the effects of new legalized markets on consumer demand will lag behind these important milestones. “We are seeing the effects of slow regulatory implementation of legalized medical and recreational marijuana markets. We expect to see sustained growth as time passes and markets stabilize,” said AEG Senior Consultant, Jason Horwitz, who oversees the AndCan Index.
AndCan Index data shows that the demand for legal cannabis products has grown by 38.8% nationwide since the start of 2015. Since the November 2016 election, when four states—Nevada, California, Massachusetts, and Maine—voted to legalize recreational use of marijuana, overall U.S. demand has increased by 23.8%.
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.
Editorial note: Anderson Economic Group will issue a benchmark revision to the AndCan Index in March 2019.
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.
AEG—East Lansing, Michigan