Canada Cannabis Spot Index (CCSI) 

Published May 8, 2020


*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..

The CCSI was assessed at C$6.36 per gram this week, down 0.8% from last week’s C$6.41 per gram. This week’s price equates to US$2,057 per pound at the current exchange rate.

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This week we focus on medical cannabis sales in Canada. Health Canada has not reported new data on total dried cannabis sold for medical use in some time. The latest data shows consumption for September 2019 at 1,215 kg. In today’s report, Cannabis Benchmarks estimates medical use in Canada from October 2019 to February 2020. 

Sales of medical cannabis products in Canada have dropped significantly since the opening of the recreational market. Health Canada data from between October 2018 and September 2019 shows a strong negative correlation between medical and recreational cannabis sales, which indicates that existing medical patients are switching to the recreational market. The assortment of regulated, high quality products selling at a low price point in the recreational market, and without the need for a doctor’s recommendation, makes the switch appealing for patients looking to access cannabis products. 

The trend line in the chart below shows a logarithmic relationship, suggesting that medical consumption will find a bottom even as monthly recreational sales volumes increase. We have highlighted the most recent data point published by Health Canada.

Source: Health Canada, Cannabis Benchmarks

Cannabis Benchmarks has modeled consumption for medical use between October 2019 and February 2020, with an average of 1,232 kg per month. Currently, Ontario makes up 47% of total medical market consumption. With the opening of more retail locations for recreational cannabis in the province, we expect medical usage to decline in Ontario, leading to an overall drop in the medical use category, as shown below.

Source: Health Canada, Cannabis Benchmarks

For more data and analytics like this, subscribe to the Cannabis Market Insights report developed in collaboration Nasdaq. This in-depth monthly report provides exclusive data and analysis on the legal cannabis industry, focusing largely on the Canadian cannabis market, as well as the cannabis equities market in the U.S.