CANNABIS CULTURE – The demand for cannabis products in America increased 1.3% in June 2017 according to The AndCan Index and Anderson Economic Group. Known as the “Dow Jones Industrial Average for the cannabis market,” the Index serves as a reliable source for data in the American marijuana market. It notes that since the U.S. Presidential election in November 2016, demand has risen 5%. These findings come courtesy of the latest report.
AEG Consultant Peter J. Schwartz oversees the AndCan Index and the firm’s report on The Market for Legal Cannabis Products in the 50 United States. Schwartz notes that cannabis product demand is back trending upwards for the second month. He notes that the industry has seen steady growth trends over the past two and a half years altogether.
While the American election season, which virtually runs nonstop, likely didn’t trigger the demand spike it does run similar timelines. The AndCan Index found that since the start of 2015, American cannabis product demand spiked by 16.4% across the nation. In the most recent election cycle, four new states – California, Maine, Massachusetts and Nevada – expanded the country’s recreational sales states to eight.
Industry experts from across the country appear excited for 2018’s findings when the first data from California’s sales should become available. Estimates for California’s recreational sales alone to reach $5 billion. While this number factors in tourist and local sales, black market and medicinal were excluded. Expectations could grow higher, however, once skeptics decide to shift their buying into the legal recreational market. The University of California Agricultural Issues Center noted back in June that, “about 29 percent of all cannabis consumers may stay in the illegal market at first to avoid the cost of new regulations requiring marijuana to be tested, tracked and taxed at 15 percent of its retail value.”
With other states like New Jersey as a prime contender to become the ninth recreational state, demand could continue its steady climb. Furthermore, with the growing number of seniors using marijuana to the equation indicates a potentially healthy future for flower demand in the United States. “I think they have tried a lot of pharmaceuticals and they’re looking to improve their quality of life,” says Kate Heckman, a Stratos spokesperson told CBS Denver. “It really appeared there was a gap in education for seniors.” Now, as market research and education becomes further available interest could increase even more. As the CBS Denver piece notes, info sessions about cannabis for seniors are on the rise. These seminars not only educate potential buyers but also allow insights into a growing market. In the case with elderly users, they’d prefer cannabis in a familiar pill form.
Additionally, the AndCan Index’s findings did not factor in demand from Nevada’s recreational sales rollout that defied expectations. This will be taken into account in the next set of data, which the Index expects should increase legal product demand for the third straight month. Schwartz recommends that people take note of other growth markets. “Take a look at the Chicago Mercantile Exchange,” said Schwartz, “Very few agriculture commodities have experienced such sustained growth this year. By any measure, this is a bull market for legal cannabis products in the United States.”
In short, the cannabis industry appears poised to become the next great American growth industry. As customers, entrepreneurs and other professionals enter the field, the AndCan Index’s findings seem to support what cities like Denver, Las Vegas, and smaller towns are already telling us: marijuana is booming. Meanwhile, other data suggests that the industry could even balloon as much as 700% by 2020. Other estimations suggest that America could see a 35% sales increase this year alone, driving the market to $17 billion in annual sales by 2021.
The findings from the AndCan Index and others in the field aren’t uniform. However, they all indicate that marijuana should continue to boom in America. As more states, more citizens, and more dollars enter the market, cannabis is proving itself to be a mainstay. As dollars surge and anti-marijuana proponents’ claims continue to be debunked, the ceiling for the sector appears to remain undefined. However, if findings like this continue to ring true that ceiling could be out of any data available to date.