2020, a year defined and cramped by coronavirus pandemic. A year that made Americans turn the tables for the sales of cannabis. Not only that but a year which also increased the searches both for medical marijuana doctors and medical marijuana card.
I thought in the middle of all of the chaos, lets have a look at one one industry that is actually thriving.
According to the data acquired by the state tax and revenue department, upon analyzing it showed that medical and adult-use marijuana sales nationwide increased up to 67% over 2019. Over the past calendar year, around $17.9 billion was spent by Americans for purchasing cannabis products. This entirely means that almost $7.2 billion more was spent than the previous year’s sales of $10.7 billion. Let’s have a more detailed look at this.
The Impact of Pandemic
Many of the cannabis users and the ones from the cannabis industry were worried about the industry-wide massive shutdown when in March the pandemic did hit the US. If you are a cannabis user, then I’m sure you can easily relate to this. Governors of most states rather announced cannabis as an extremely important product. Responses like curbside pickup, online ordering offers, and Covid-safe delivery options were given by retail stores and dispensaries to their customers.
In return, customers acknowledged by stocking up their cannabis products for the stay-at-home time. With a small decline in the revenue of late-March sales, a notable bump was seen by most stores in April, and thereafter this bump became a plateau.
Curbside Pickups And Online Orders Saved The Industry
Consumers Bought 25-40% More
Although new legal states and new patients and consumers played a role in the boom of cannabis in 2020, established consumers were the main drivers of the sales increase. The purchase size of the average monthly spending of existing consumers increased from 25 to 40%. Even medical marijuana doctors were a witness to this scenario.
Surviving The Stress of Pandemic
The sales figures for this year didn’t come as a surprise to retailers, who had hands-on knowledge about the role of cannabis in their customer’s lives, especially since March when the pandemic hit. A survey was done by an operator of a multi-state dispensary on more than 2000 Americans, in October. It showed that 72% of them felt that the leading cause of burnout and stress in their lives was the coronavirus pandemic. Around 40% of them used cannabis in order to survive the stress of the pandemic. And around 37% used CBD. 29% of them additionally, thought of giving cannabis a try for lowering their stress levels in 2020.
More Than Doubled Sales in Nine States
In 2020 the total sales of marijuana almost doubled than the ones in 2019 in nine states. These include Florida, Ohio, Arkansas, Illinois, Pennsylvania, New Jersey, Connecticut, North Dakota, and New Jersey. Where Florida became the fourth-largest cannabis market in the nation in 2020. This medical marijuana state having sales of more than $1.2 billion lagged behind only the top adult-use states, Washington, Colorado, and California.
A Story of Two States: New York And Florida
When it comes to the success of the industry and patient access, the importance of state regulations is also revealed by the sales data of this year. Both New York and Florida have abruptly comparable populations, which is around 20 million. In spite of that the markets of medical marijuana have grown in completely different directions.
Having a population of 20 million, New York has only 38 licensed dispensaries which is a comically low number. Whereas, Florida serves almost a similar population with 300 licensed dispensaries. Cannabis flower is never allowed to be sold in New York while half of the sales of marijuana in Florida now is due to cannabis flower.
And as a result, in comparison to New York, Florida has four times more registered patients. Due to this, the sales revenue of the state recorded ten times more than New York in 2020. These stats reveal the importance of medical marijuana and in turn medical marijuana doctors in Florida.