By New Frontier Data
Q: To what extent does seasonality affect cannabis demand in the U.S.?
A: Not much research has been done on the seasonality of cannabis demand in the U.S., though it is common knowledge that demand for cannabis waxes and wanes throughout the year. For example, legal demand for flower on the West Coast has historically decreased significantly immediately following the outdoor harvest, and typically taken several months to rebound.
By examining revenues, spending behaviors, and average transaction amounts, one can calculate how demand is affected by seasonality. Using aggregated point of sale data, there are several key findings to be gleaned.
Before delving into the analysis, some disclosure about how seasonality is calculated: Generally, seasonality compares each period's results from the average results over an extended period, and seasonality is most commonly examined in terms of quarters or months. In this case, New Frontier Data calculated how transaction amounts for flower, edibles, extracts, vapes, tinctures, and topicals fluctuate …
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