Demand for legal marijuana products decreased by more than 1.1% in April, according to a new index that monitors the U.S. cannabis industry in states where the drug is legal.
Cannabis producers should take heart, however: Anderson Economic Group’s inaugural AndCan Index shows that marijuana demand is up by 2.4% across the country since the November 2016 election and has grown by 13.5% nationwide since the beginning of 2015, according to a news release.
The AndCan Index, a monthly assessment of the demand for legal marijuana products in the United States, is the “Dow Jones Industrial Average for the cannabis market,” according to the Anderson Economic Group (AEG).
As for the April decrease, AEG consultant Peter J. Schwartz said the industry needn’t worry.
“All indications are that this drop is but a detour on an otherwise steady path in the growth of the cannabis market,” said Schwartz, who oversees the AndCan Index as well as the firm’s report, The Market for Legal Cannabis Products in the 50 United States.
According to the release, East Lansing, Michigan-based AEG gets its data from hundreds of thousands of data points, including recreational and medical sales in Alaska, Colorado, Oregon and Washington state.
In states where legal sales numbers aren’t available, AEG estimates “latent demand from survey data on marijuana usage, alcoholic beverage consumption and spending, and demographic data.” The company then calculates state estimates “based on that state’s unique data,” according to the release.
AEG, which has been in business for 20-plus years, specializes in company valuation, expert testimony and public policy. The group has worked with governments, universities and corporations nationally and abroad.