Over $37 Million in Legal Cannabis Sold on 4/20 in the U.S.
There was $37.5 million spent on the legal purchase of cannabis and cannabis products on April 20 this year, a roughly 30% increase from April 20 of last year. April 20 (4/20), of course, is the unofficial cannabis holiday, celebrated by cannabis consumers and supporters worldwide.
According to MJ Freeway, which tracks the legal cannabis industry in the United States, the sales figures were compiled through an analysis of 40% of the cannabis retail market.
“As the leading provider of cannabis software solutions, MJ Freeway has the largest and most representative retail data in the cannabis industry”, says Jessica Billingsley, MJ Freeway’s COO. “We have an unmatched vantage point from which to view trends and changes in the industry.. This data is a powerful tool for understanding real-time cannabis industry changes and for predicting future trends.”
According to MJ Freeway; “The cannabis industry, which totaled $5.7B in sales in 2015 and is expected to clear $7.1B in 2016 (figures provided by the Arcview Industry Report, 2016), sees the most customer traffic and highest overall sales on April 20.”
Here are some 4/20 stats given by MJ Freeway:
- Individual cannabis licensed retail locations* – dispensaries and delivery services – sold on average $10,822 in retail sales on April 20, $6,208 on April 19, and $5,442 on April 18. *Note: One physical cannabis retail location may operate with two individual licenses – medical and recreational.
April 20 alone nets 192% increase in sales compared to annual cannabis retail sales day averages.
- Cannabis retail customer traffic increased by more than 29% on April 20, 2016 compared to April 20, 2015.
- While customer traffic was up, customers spent on average $20 less per transaction on April 20, 2016 versus April 20, 2015.
- The state with the total highest average sales per day per retail licensed location for April 20 was Colorado. The state with highest total dollar amount sold on April 20 was California. When equivalized by population, Colorado outsold California in total dollar sales on April 20 by 3 times.
Here is the group’s “Key Take-Aways for Cannabis Operators:
- Stores open later hours and seven days a week surrounding the holiday benefitted more. Shoppers ramp up their holiday purchases up to five days in advance of the holiday.
- On April 20, 2017, be prepared with retail staff and inventory to handle a 3.5 times increase in customer traffic and sold inventory.
- The next big cannabis retail sales holiday is July 4, which ranks as third highest holiday in total cannabis retail dollar sales following 4-20 and New Year’s Eve.