According to a new report by the research firm New Frontier Data, the legal retail sales of marijuana and marijuana products in the United States reached all-time highs during the months of April and May.
According to the report which covered 24 legal recreational or medical marijuana programs, “Average consumer monthly spending rose to record highs in April and May, reaching $290 and $296, respectively.”
They found that “One unanticipated effect of the COVID-19 pandemic has been the growth acceleration of legal cannabis markets (and erosion of the illicit markets) in those states which have activated both medical and adult-use sales.”
The report states that “One unanticipated effect of the COVID-19 pandemic has been the growth acceleration of legal cannabis markets (and erosion of illicit markets) in those states which have activated both medical and adult-use sales. In 2019, the total combined illicit market for cannabis in the United States was an estimated $64 billion, which through the growth of currently legal markets is projected to shrink some $4 billion by 2022.”
It continues by stating that: “Through higher sales and increased patient participation in medical-only markets, the second quarter of 2020 saw surging patient counts in medical markets – particularly in those having 1) lower barriers to entry (i.e., less restrictive qualification requirements), and 2) more accessible markets (i.e., greater density among dispensaries).”