Many people sit down each month to create a budget and figure out where their money is going before they even spend it. Bills. Debt payments. Gas. Food. And, of course, entertainment. That last category can include everything from going to the movies to meeting friends at the local pub. Increasingly, it also means what you plan to spend on marijuana.
Planning to Spend On Marijuana
With recreational marijuana now legal in eight states, millions of people have the opportunity to drop their well-earned cash on cannabis products. That could include a trip to the dispensary for marijuana or purchasing any of the vast number of cannabis products such as edibles.
So how much do people spend on marijuana? A recent study set to find out.
A $6.7 Billion Industry
First, the big picture. According to Arcview Market Research, the total amount of legal cannabis sales in North America reached a staggering $6.7 billion in 2016, a 30 percent jump over the year before.
But that’s just the beginning. Arcview projects that total sales will reach $20.1 billion by 2021. Part of that is driven by both California and Massachusetts. Both states expect to start adult-use marijuana sales in 2018.
In California alone, sales are expected to reach $15 billion a year, according to Investopedia.
So how are they reaching those big numbers? As it turns out, one $18 purchase at a time.
In a study done by Lend Edu, consumers across the country were asked what they spend each month on marijuana. They also were asked a number of other questions about cannabis-related spending. Some of the findings included:
- The average marijuana user spends $111.05 on cannabis each month
- They buy an average of 6.22 cannabis-related products each month
- They spend $17.85 on average with every purchase
The survey included responses from more than 1,000 people.
Marijuana Over Eating Out
Those numbers get even more interesting when compared to what the average consumer spends on other products.
For example, Lend Edu asked survey respondents if they spent more each month on marijuana or on restaurants. More than 27 percent said they typically spend more on marijuana than on going out to eat.
Also, more than half – 51.1 percent – said they include buying marijuana products as part of their monthly budget.
That part of the budget has gotten easier, however, with 59 percent of those surveyed saying the cost of marijuana has actually gone down in their area.
The study now gives everyone a yard stick to measure their own marijuana purchasing habits. With more than $111 a month spent by the average marijuana user, and huge states such as California and Massachusetts set to start recreational sales, it’s easy to see why projections call for big increases in profits for the marijuana industry in the coming years.