Headset, a leading cannabis data, and market intelligence platform, recently conducted an audit of cannabis sales data around the United States—and the discoveries were interesting. As it turns out, it’s the medical cannabis consumers who spend the most money. While this is somewhat surprising considering the lower costs and taxes of medical marijuana, Headset’s September 2021 report on developments in U.S. medical and recreational cannabis markets points to the fact that medical markets are older and more established. There are also likely more medical users than recreational users around the nation, as 36 states have legalized med while only 18 have legalized rec. However, the findings weren’t that simple. The analysis also identified that states saw significant revenue growth following the legalization of adult-use (recreational) cannabis. For example, Illinois saw a 226% increase in recreational purchases between January 2020—when the state legalized rec—and July 2021, while Michigan saw an increase of 1077% in that same period. Data like this makes it seem as if recreational users are spending more, but Headset explains that the data varies drastically from state to state depending on market conditions and legislative history. Looking at the more mature markets, such as those of Colorado and Oregon, one gets a more realistic understanding of the state of the cannabis industry—which offers evidence that recreational legalization for adults is not a death sentence for the medical cannabis market.
Posted By, Cannabis Central, 11/22/2021 08:30:00