Monday, June 17, 2024

Consumer Spending Validates Marijuana Rescheduling

It is a historic move for a country which had prohibition, but consumers are using their wallets to show they support it.

Culture wars have been an American tradition – from the battle over TicTok to the alcohol prohibition in the 1920s. It was said the only thing to come out of the anti-liquor period was it taught good citizens how to break the law.  But in general, if the public wants it, the public will have it, legal or not. The perfect is example is the Pornhub ban in Utah and Texas, which has sent VPN sign ups sky high. And consumer spending validates marijuana rescheduling in a major way.

RELATED: Beer Sales Flatten Thanks To Marijuana

Some politicians and leaders believe in the nanny state option.  Those include a few governors lead by Ron DeSantis, Mitch McConnell, and a few other special interest groups.  But the Biden’s administration’s decision to reschedule cannabis lines up with public opinion. Over 85% believe it should legal in some form, and more importantly, they are putting their money toward what they want.  Leading analyst firm, BDSA, shared the public’s spending habit’s match their thoughts on rescheduling.

Photo by Anton Petrus/Getty Images

Following the tradition, cannabis sales moved higher again this year. Sales on 20 April 2024 sales were $167M, a 33% increase over the previous year.  Trends like California sober are going strong and Gen Z continues to move away from alcohol and move toward marijuana vapes and gummies. Lifestyle habits are starting to adjust slightly away from alcohol and more low alcohol drinks, mocktails, and cannabis eat away at the traditional market.  Alcohol is much rougher on the body, so many are opting for a semi-healthier option.

It is a benefit for fully recreational states as even Missouri makes significant tax income on cannabis. Most governors are on board with rescheduling at it is not only the public’s will, but it helps the state’s coffers and actually helps in other areas. Even New York State, with over 1,500 non tax paying illicit stores making money, made some income.  They have less than 100 licensed dispensaries generating over $175 million.

RELATED: How To Microdose Marijuana

On an interesting sidebar, like holidays, there are some holidays where cannabis use is up. Here are the largest for 2023

  1. 420
  2. Green Wednesday
  3. Black Friday
  4. St Patrick’s Day
  5. Veteran’s Day

In comparison, alcohol’s largest days are:

  1. New Year’s Eve
  2. St. Patrick’s Day
  3. July 4th
  4. Day Before Thanksgiving/ Blackout Wednesday/ Drinksgiving
  5. Black Friday

Let’s see how the next 12 months works for the industry, the government and the public.

 

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