As more U.S. states move towards legalization, cannabis consumers are taking advantage of the unique opportunity to address medical needs through the available products at their local dispensaries. Though medical cannabis is generally not covered by most U.S. insurance plans, trends indicate increased use of cannabis as an alternative to more traditional forms of medication. Here are BDS Analytics' Top 5 Insights into the impact of legal cannabis sales on the over-the-counter (OTC) and prescription drug channels:
- 64% of U.S. adults 21+ believe cannabis has medical benefits. Additionally, 51% of Consumers in legal states consider cannabis to be medicine.
- Medical cannabis spending = $12.3B by 2022. Adult-use spending overall (largely driven by health/wellness needs) will grow to $19.3B.
- Cannabis fulfills common OTC/Rx needs. Pain, anxiety and sleep disorders are among the top five reasons for cannabis consumption.
- Cannabis is replacing OTC/Rx use. Consumers across the U.S. (41%) report a reduction in their use of OTC and prescription medications as a result of alternative cannabis product use; not surprisingly, the 41% reduction is consistent across the U.S. in states with legal markets.
- The dispensary channel is a direct competitor to traditional retailers and pharmaceutical companies. Replacing traditional OTC and Rx products with cannabis means fewer trips to drug store/pharmacy retailers -- cannabis can be a less expensive, prescription-free option.
Data sourced from BDS Analytics' GreenEdge™ Platform
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