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Travis Wise

Millennials Drive On-Demand MMJ Sales in California

According to a report from New Frontier Data and, millennials account for 80 percent of online cannabis purchases, which the analysts suggest reflect the 18 to 34-year-olds’ higher rates of cannabis use and online interaction. The report, “Cannabis On Demand: Evolving Trends in California’s Medical Market” includes market growth forecasts for the state, consumer demographics, and product and transaction trends.

The researchers found that flower represents 70 percent of all cannabis products purchased through the greenRush platform, and 60 percent of those are one-eighth orders. Concentrates represent 22 percent of greenRush purchases.

According to the report, California medical cannabis sales are expected to reach $2.8 billion this year and as much as $6.6 billion by 2025, representing a compound annual growth rate of 12 percent.

“Significant changes are already underway in California for medical cannabis and adult use laws, which we see will have major implications for the cannabis industry, including e-commerce and delivery services in the state,” said Giadha Aguirre de Carcer, New Frontier Data CEO in a press release. “As the largest state in the country – and the largest potential market for cannabis products – the implications for the growth of the industry because of California’s adult use market cannot be overstated.”

According to the report’s executive summary, Fridays and Saturdays account for a third of all order through the on-demand platform, and men spent $71.27 per transaction on average while women spent $69.15. On average, customers spent $70.67 per transaction.

The data covers greenRush sales from January 2016 through April 2017.

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