Gallop: More Americans Smoke Cannabis Now Than Tobacco Cigarettes

Introduction

American adults are now more likely to smoke marijuana than tobacco cigarettes, according to new survey from Gallup. The Gallup data comes from a question that asks simply whether “you, yourself, smoke marijuana.” It further does not clarify whether the question is meant to encompass all cannabis use such as vaping or consumption of edibles and THC beverages, or only the combustion of cannabis flower.

The Survey Says: 

• cannabis consumption has more than doubled since 2013 as cigarette smoking has fallen to historic lows;
• 15% of U.S. adults reported that they smoke cannabis, which is more than the 11% who told the polling firm that they have smoked any cigarettes in the past week. (A report from Gallop says that the use of tobacco cigarettes among U.S. Adults was 41% in 1944.)
• men are more likely than women to report smoking marijuana, at 17% compared to 11%;
• Younger adults, ages 18 to 34, were also more likely (19%) to smoke cannabis than adults aged 35 to 54 (18 percent) and those 55 and older (10 percent);
• 23% of Democrats polled reported smoking marijuana versus 10% by Republicans with Independents in the middle at 14%;
• the West led the country in reported marijuana smoking, at a rate of 19% versus 16% for both the East and Midwest;
• the South reported marijuana smoking at only 11% which may reflect not only cultural differences but also the varying legal status and availability of marijuana across regions.

47% Of Americans Have Tried Marijuana

Gallup also asked Americans in a separate survey if they had ever tried marijuana and the survey results were that:

• 47% of Americans did in 2023/24
  • it jumped from 4% in 1969 to 24% in 1977;
  • it rose to 33% by 1985;
  • it stalled at under 40% until 2015, when it ticked up to 44%.

The MunAiMarkets Conservative “Cannabis” Stocks Portfolio

Given the above statistics it is no wonder that 5 of the major tobacco companies have invested heavily in cannabis companies in the past few years. Below is how those 5 companies have performed MTD, in descending order, and YTD versus the stocks of their cannabis company investments:

1. British American Tobacco (BTI): UP 4.0% MTD; UP 24.2% YTD 
   • has a C$346M product development partnership with Organigram Holdings (OGI)
   • dividend yield: 8.44%
   • forward price earnings ratio: 7.6
2. Altria Group (MO): UP 2.7% MTD; UP 38.8% YTD
   • has a 45% stake in Cronos Group (CRON)
   • dividend yield: 7.37%
   • forward price earnings ratio: 10.8
3. Constellation Brands (STZ): UP 1.6% MTD; DOWN 1.8%% YTD 
   • has a 39% stake in Canopy Growth (CGC)
   • dividend yield: 1.67%
   • forward price earnings ratio: 17.7
4. Imperial Brands (IMBBY): DOWN 0.2% MTD; UP 29.0% YTD
   • has a 19.9% stake in Auxly Cannabis Group (CBWTF)
   • dividend yield: 6.51%
   • forward price earnings ratio: 9.5
5. Anheuser-Busch InBev (BUD): DOWN 5.3% MTD; DOWN 12.1 x% YTD
   • has a $100 million joint venture with Tilray (TLRY)
   • dividend yield: 1.55%
   • forward price earnings ratio: 16.9

In Summary

In summary, the MunAiMarkets Conservative “Cannabis” Stocks Portfolio is UP 1.2% MTD and UP 4.2% YTD.