Cannabis Benchmarks Canada Cannabis Spot Index January 20, 2023

The CCSI was assessed at C$5.10 per gram this week, down 0.1% from last week’s C$5.10 per gram. This week’s price equates to US$1,720 per pound at the current exchange rate.

Cannabis Benchmarks Canada Cannabis Market Analysis January 20, 2023
  • Statistics Canada recently released October retail cannabis sales for the country. To correct for the different number of days per month, we look at the data in terms of average daily sales in the above chart. The latest data shows average daily sales dropping off the peak last month to C$12.6M in October, an decrease of 4% from the same month last year.
  • As seen in the chart above, sales were relatively flat from summer 2021 into early 2022, then saw a step up in April 2022. We attribute the rise in sales last year to more efficient cannabis delivery options across multiple provinces and the privatization of online cannabis sales in Alberta.
  • Flattening sales are causing concern for the industry. It poses the question – have we hit a saturation point in volume sold or are retail cannabis prices dropping too quickly amidst intense competition? We believe it’s the latter. With continuous expansion of accessibility through new store fronts and delivery options, this data tells us that consumption is strong, yet price points and margins are dropping rapidly.
  • If sales continue at the daily run rate for September for the rest of the year, total 2022 sales should exceed C$4.5B. (This calculation assumes daily sales average C$13.0M between October and December.) At the current sales level this also points to 2023 sales levels reaching C$4.7B.

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*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.
**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes.

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