June 2020 legal U.S. cannabis product demand increased more than three percent
- Monthly demand for U.S. legal cannabis products increased 3.0% in June.
- Year-over-year trends in demand growth continue a very strong upward trajectory at 19.1%.
- While not meeting the 4% mark of May’s growth, June’s 3% is still unusually high.
FOR IMMEDIATE RELEASE
EAST LANSING, MI—September 2, 2020—According to Anderson Economic Group’s monthly AndCan®Index, growth in demand for legal cannabis products in the United States in June was lower than the previous month, but growth remains at elevated levels, continuing a trend 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 unusually high growth in cannabis demand seen this spring may not last. “Stimulus payments and restaurant and bar closures resulting from the COVID-19 pandemic have clearly led to increased cannabis sales,” he explained. “These factors are not permanent…for example, many of the federal government’s initial pandemic relief programs have drawn to a close, and we may see demand growth slow as a result.”
Increasing cannabis demand has been fueled in part by the rapid growth of new recreational cannabis markets in Illinois and Michigan. Between March and June, recreational cannabis sales increased by 33% in Illinois and more than doubled in Michigan.
AEG’s expert consultants, including AndCan®Index lead Kenan Cosguner, are available for comment and further analysis by contacting AEG at 517.333.6984.
Cannabis in the News
Medical marijuana in Florida was legalized four years ago, but edible marijuana products were not allowed until the state issued new rules on August 26. The new rules took effect immediately, and Florida’s marijuana industry is gearing up to offer these new products to the state’s 400,000 medical marijuana patients.
Gov. Tom Wolf of Pennsylvania recently released a COVID-19 economic recovery agenda that includes recreational marijuana legalization. The legalization proposal includes a provision to use a portion of recreational marijuana tax revenues to fund grants to small businesses.
Almost four years after Maine voters approved the use of legal recreational marijuana, the first recreational business licenses will be issued on September 8, and retail sales will begin on October 9.
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 has recognized the superior quality of this work by honoring Patrick L. Anderson with a “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. Requests will be evaluated on a case-by-case basis.