This week, we share analysis from Cannabis Market Insights, our co-branded report with NASDAQ, covering Canadian cannabis market fundamentals, pricing and equities. The report is updated monthly and includes Cannabis Benchmarks® projections.
Retail Sales continue to grow with Statistics Canada reporting sales in June over C$200M. This is a major milestone for the legal cannabis sector, which had revenues of only C$91.5M in June 2019.
Retail sales are still dominated by Alberta, which can be attributed to its massive retail footprint. Ontario with 40% of Canada’s population contributes 22% of the total retail sales despite only having 12% of the total retail stores. With a strong correlation between storefront and retail sales, we expect Ontario sales to rise this year as more brick & mortar stores are planned to come to market.
Total dry cannabis consumed by recreational users in Canada continues to grow with more product variety and a larger retail footprint. Sales in May continued to show strength with cannabis stores being deemed essential and remaining open during COVID lockdowns. The growth in reported sales in June suggests more consumers are purchasing legal cannabis through legal channels. The current Statistics Canada data reports estimates through September 2019, with the balance coming from Cannabis Benchmarks® models.
Total cannabis oil sold for recreational use in Canada has been on a steady rise with recreational cannabis consumers becoming more accustomed to this product category. With the introduction of cannabis 2.0 products, this category should continue its growth trajectory in 2020. The current Statistics Canada data reports estimates through September 2019, with the balance coming from Cannabis Benchmarks® models.
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