EAST LANSING – Demand for legal cannabis products in the United States rebounded in April 2020 after flat growth in March, reports 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.
While the legal cannabis market showed steady growth through most of 2019 and experienced a strong start in 2020, demand held steady in March before the growth trend resumed in April. AEG experts attribute the swing in demand to factors related to the COVID-19 pandemic.
Legal U.S. cannabis product demand increases by 3.6% in April 2020
• Monthly demand for legal cannabis products in the U.S. increased by 3.6% in April.
• Year-over-year demand is strong, showing a 16.3% growth rate.
• After slowing down in March, the growth trend rebounded in April.
Anderson Economic Group’s lead analyst for this market, Kenan Cosguner, expressed confidence in a return to strong growth trends in the long term. Cosguner indicates caution in the near term, however:
“The COVID-19 outbreak is causing instability in the short-term, with some states experiencing record growth and others, steep decline,” he explained. “The outbreak’s impacts will continue to vary from state to state and will also be influenced by the scope of federal stimulus and relief programs.”
For example, while recreational sales soared 40 percent in Oregon from February to April, they fell 30 percent in Nevada.
For more details, see AEG’s recent release on COVID-19’s impact on cannabis demand.