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Americans purchased $17.9 billion in cannabis products over the past calendar year. That’s $7.2 billion more than the $10.7 billion in sales from 2019!
The pandemic helped vice businesses surge, or at least stave off the catastrophic downturns that other markets experienced.
With so many consumers staying home in accordance with social-distancing measures, they turned to new and familiar vices to cope. As a result, 2020’s market projections were thrown for a loop — setting the stage for a prosperous 2021.
Cannabis, Alcohol And Sex
Cannabis sales soared in 2020. According to Leafly, nationwide sales of medical and adult-use marijuana increased by 67% over 2019. That means Americans purchased $17.9 billion in cannabis products over the past calendar year. That’s $7.2 billion more than the $10.7 billion in sales from 2019!
The alcoholic beverage space outperformed 2020 expectations, but still saw global figures decline. Analysis firm IWSR reported that the market declined by 8% in 2020, less than the previously projected double-digit drop.
Alcohol e-commerce surged in 2020 due to lockdown measures, increasing 40% across ten countries, including the U.S., U.K, Japan, Germany, Brazil and Australia.
The U.S. sexual wellness market also saw significant growth. Per Grand View Research, the sector hovered $9.1 billion in 2019. It’s projected to grow at a 5.2% compound annual growth rate between 2020 and 2027.
The report noted that the pandemic reduced stigmas around sex acts like masturbation, prompting consumers to purchase toys to enhance sexual experiences.
Sexual wellness operators expect the acceptance of sex and sexuality to continue to rise, but replicating the previous year’s performance may be difficult.
Joe Vela, co-founder and CEO of sex tech brand Emojibator, says company revenue increased 83% between 2019 and 2020. He said the company is developing new products, lines and securing partnerships in an attempt to outdo itself this year.
“In 2020, we saw the trends towards celebrity-endorsed sex toy brands and subscription-based social media like OnlyFans which point towards changing attitudes of sexuality,” Vela says.
Published: February 01, 2021
Founder & Interim Editor of L.A. Cannabis News