Growth in demand for legal cannabis products in the United States in September was lower than the previous month, continuing a new trend of slow growth markedly different from the rapid rise in sales we experienced 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 2015.
- Monthly demand for legal cannabis products in the U.S. increased by 0.7% in September.
- Year-over-year demand is strong, showing a 24.0% growth rate.
- The growth rate decreased from August to September, continuing the prior month’s trend of slower growth.
Anderson Economic Group’s lead analyst for this market, Kenan Cosguner, noted that the unprecedented growth in cannabis demand earlier this year was unlikely to persist in the long-term. “Federal relief programs passed in response to the COVID-19 pandemic helped fuel a dramatic rise in demand for cannabis products last spring,” he explained. “Now that these relief programs have ended, it appears that demand growth may be returning to pre-pandemic levels.”
While some states, such as Illinois and Michigan, experienced recreational cannabis sales growth in September, others saw demand weaken. After months of strong growth, cannabis sales fell 3% in Massachusetts. And in Colorado, sales fell 8%, the second month in a row the state has seen cannabis demand decline.
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.
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.