|EAST LANSING – According to Anderson Economic Group’s monthly AndCan Index, demand for legal cannabis products in the United States surged 4 percent in May 2020 after rebounding 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, cautions that the pace of the spike in cannabis demand seen in April and May is unlikely to persist at in the long-term. “Certain factors related to the COVID-19 outbreak, such as stimulus payments and restaurant and bar closures, have clearly increased demand,” said Cosguner, adding that “These factors are not permanent.” To clarify, Cosguner explains that “unless federal relief programs are extended, we should expect to see growth rates slow.”
Among the states benefiting from this short-term spike in cannabis demand is Colorado, where estimated recreational demand exceeded $150 million in May, our highest estimate on record for this state.