BOULDER, Colo., April 7, 2020 /PRNewswire/ -- BDS Analytics, the leading provider of cannabis industry market research, today announced Massachusetts retail cannabis sales exceeded $587 million in 2019 and are trending sharply up, with January and February sales over $130 million. This year's sales are projected to exceed $745 million, an increase of 27%, based on top-line sales projections modeled from point-of-sale transaction records.
With nearly 7 million residents, Massachusetts population is about 30% larger than that of Colorado, a state with over $1.7 billion in legal cannabis sales in the last 12 months. Massachusetts, however, has been slow to grow their retailer presence, with only 36 adult-use dispensaries and 57 medical dispensaries, compared with 306 dispensaries operating in Colorado's first year of adult-use sales and 587 adult-use licenses and 432 medical licenses currently.
"Massachusetts is the largest eastern state to fully legalize cannabis, both for medicinal and recreational use," said Roy Bingham, Co-founder and CEO of BDSA. "The successful roll-out of the legal cannabis program across one of the founding states represents a major shift in New England politics and is likely to accelerate the legalization initiatives in other major markets, including New York, as regulators and politicians grow more comfortable with the cannabis industry and face extreme budget pressure caused in part by the financial impact of COVID-19 mitigation measures."
Currently, Massachusetts dispensary shoppers are spending an average of $140 a month on cannabis products, with about 14% of these shoppers making purchases on a weekly basis. BDS Analytics' unique combination of macro-economic research with consumer insights and retail sales tracking paints a comprehensive picture of this booming market where 68% of adults 21+ are currently consuming or are open to consuming cannabis in the future, and 71% support some form of cannabis legalization.
BDSA forecasts the Massachusetts market will reach $1.35 billion in 2024, rising at a CAGR of 18.1% from 2019, driven by new store openings, increasing consumer demand and new product form factors. Headwinds still exist including multi-layered regulatory structures and tax burdens from state and local government. Even so, the first full year of adult-use sales experienced consistent month-over-month growth. Continued growth is expected throughout the forecast period. The impact of the COVID-19 mitigation measures remains to be seen, with initial data indicating an uptick in adult-use sales before a government shutdown of recreationally licensed dispensaries on March 24. BDSA is conducting research for a July 2020 forecast update based on retail sales, government data, and consumer surveys.
About BDS Analytics:
Headquartered in Boulder, Colorado, BDS Analytics helps businesses improve revenues, reduce innovation risk, and prioritize market expansion with accurate and actionable cannabis market intelligence and consumer research. The company provides a holistic understanding of the cannabis market by generating insights from point-of-sale data, consumer research, and market-wide industry projections. To learn more please visit www.bdsanalytics.com.
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SOURCE BDS Analytics