November 13, 2015
A recently released report—The Market for Legal Cannabis Products in the 50 United States—from Anderson Economic Group heavily features data analytics work done by Supported Intelligence.
This report, the first of its scale and scope, uses a consumer demand approach to estimate the market demand in each state for legal cannabis products, including recreational marijuana and related products. In addition to market demand, we also estimated potential state tax revenue and cannibalization of alcohol sales due to legalization of cannabis products. SI also developed a recursive model for calculating an indicative business value for businesses operating in the distribution industry of each state.
“We are excited to release the only report that provides a thorough, consumer-demand based estimate of the market for legal marijuana sales in each individual state,” said report co-author Jeff Johnson, COO of Supported Intelligence. “This was no small task, but we believe our state-by-state approach provides readers with the best picture of the market for state-sanctioned cannabis products in the United States.”
The figure below is excerpted from the report and shows the size of each state's market relative to the other state markets. These rankings assume full legalization in each state.
With dramatic changes in both public opinion and the legal landscape regarding marijuana, it is clear that future consumption of marijuana in the U.S. will be under a much different legal regime than in the past. AEG’s report provides an analysis backed by consistent and sober methodology for those who are investing in this emerging industry; attempting to estimate or design tax and regulatory regimes for it; selling potentially competing products, such as alcohol beverages, tobacco, and other medical therapies; and with interests in public health and law enforcement.
“American opinions about marijuana are changing and it’s time that voters and investors have a sober and realistic look at the potential market for these products in each state,” said Patrick L. Anderson, CEO of Anderson Economic Group.
You may view the Executive Summary and purchase the full report at www.AndersonEconomicGroup.com/Publications/CannabisMarketAnalysis.