Revenue and tax data acquired from different states shows that sales of adult-use and medical cannabis in the United States has grown by 67% this year, owing to the coronavirus pandemic and the subsequent lockdown that was implemented. The data shows that this year, Americans bought $17.9 billion worth of marijuana product, a significant increase from cannabis product sales last year, which totaled approximately $10.7 billion. Washington DC and 15 other states have legalized marijuana for use by adults while medical cannabis is legal in 37 states in the United States.
On the onset of the pandemic, many in the U.S. marijuana industry were worried that the industry would be shut down. Instead, most governors in various states in the country declared marijuana to be an essential product, which prompted retail stores and dispensaries to start offering online services, an alternative option that was considered to be COVID safe. These services included ordering online, doorstep deliveries and curbside pickups.
In turn, consumers responded by buying additional inventory after March, with the average monthly spend of established customers growing to 40% from 25%. A majority of the stores recorded increases in revenue in the month of April. In states such as Massachusetts, marijuana stores recorded a 75% gain in annual sales, despite the governor ordering a statewide shutdown in the month of April. In comparison with 2019 sales that reach an estimated $400 million, cannabis retailers are likely to sell about $700 million in marijuana products by the year’s end.
In addition to the essential product declaration, the legalization of marijuana in other states and new patients and consumers also helped with the marijuana boom this year.
Earlier in October, Verilife, an operator of dispensaries in multiple states, surveyed more than 2,000 Americans and discovered that 72% of survey participants reported that the coronavirus pandemic was the main cause of the burnout and stress in their lives this year. Roughly 40% of respondents admitted to having used marijuana to cope with burnout while another 37% stated that they had used CBD. Another 29% admitted that they had considered using cannabis to help lower their stress levels.
In total, nine states increased their cannabis sales totals this year, including Pennsylvania, Arkansas, Ohio, Connecticut, North Dakota, Florida, New Jersey, Maine and Illinois. This year, the medical cannabis state of Florida became the fourth largest marijuana market in the country. The state raked in more than $1.2 billion in sales, following states that allowed adult-use marijuana: Washington, California and Colorado.
In Michigan, Gage Cannabis Co. is one of the top companies serving cannabis customers. The firm has an avowed aim to have a provisioning center (dispensary) within an hour’s drive from every potential customer in the state.
NOTE TO INVESTORS: The latest news and updates relating to Gage Cannabis Co. are available in the company’s newsroom at https://ibn.fm/GAGE
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