EAST LANSING – Growth in demand for legal cannabis products in the United States was slightly slower in November than it was in October. This continues a new trend of much softer demand growth than we saw in the spring and early summer, according to Anderson Economic Group’s monthly AndCan®Index.
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 201
Kenan Cosguner, Anderson Economic Group’s lead analyst for this market, predicts that the latest round of federal COVID-19 relief spending (passed in late December) may boost cannabis demand in the first quarter. “We saw surging demand for cannabis products begin to subside when federal relief programs drew to a close last summer,” he said. “Now that expanded unemployment insurance has been extended, new stimulus payments are being issued, and the second round of PPP loans is being released, the softening trend could reverse and the pace of growth may pick up again.”
Monthly demand for legal cannabis products in the U.S. increased by 0.2% in November.
Year-over-year demand remains strong, showing a 23.2% growth rate.
The growth rate decreased between October and November, continuing a trend of slower growth when compared to the surge in spring and summer.
Highlighting the slowdown in cannabis demand growth this fall, several states saw a significant decrease in recreational cannabis sales from October to November. Sales fell 13 percent in Colorado, 10 percent in Massachusetts, and 8 percent in Michigan.
Growth continues at the slower pace that began in early summer: While demand continued to grow between October and November, it did so at a rate that barely registers on the 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 AndCan Index builds upon:
- Over four 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 technical papers 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 several 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.
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.