October 28, 2022

CANADA CANNABIS SPOT INDEX — October 28, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending October 28, 2022
CCSI image 1 2022-10-28

*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$5.22 per gram this week, down 0.6% from last week’s C$5.25 per gram. This week’s price equates to US$1,742 per pound at the current exchange rate.

Include your weekly wholesale transactions in our price assessment by joining our Price Contributor Network

If you have not already done so, we invite you to join our Price Contributor Network, where market participants anonymously submit wholesale transactions to be included in our weekly price assessments. It takes two minutes to join and two minutes to submit each week, and comes with loads of extra data and market intelligence.

SOURE: Cannabis Benchmarks, Health Canada
  • Statistics Canada recently released August retail cannabis sales for the country. August sales, at C$393.7M, were only C$0.8M higher than July. 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 hit a peak of C$12.7M in August, an increase of 13% from the same month last year. As seen in the chart above, the annual growth has slowed considerably, leading to a plateau in sales.
  • However, it is important to note that there were a number of anomalous factors that prevented sales from being considerably higher in August. First, Ontario’s provincial cannabis wholesaler, the Ontario Cannabis Store (OCS), suspended deliveries to retailers after a cyberattack impacted one of its supply chain partners. The delivery halt began August 5 and lasted almost a week. The OCS’s actions were precautionary, as the cyberattack did not impact their operation directly, but rather that of its key distribution partner, Domain Logistics.
  • Second, labor issues in British Columbia (BC) prevented the provincial cannabis distribution center from distributing goods to private retail locations for a significant portion of late August. Privately held businesses in the province, which are obligated to obtain their supply from the BC Liquor Distribution Branch (BCLDB), stated that they were forced to temporarily close because they were out of stock.
  • Third, there is still fierce rivalry in Alberta’s retail sector, which is starting to result in comparatively low sales margins and storefront closures.
  • If sales continue at the daily run rate for August for the rest of the year, total 2022 sales should exceed C$4.49B. (That calculation assumes daily sales average C$12.7M between September and December.) This should establish the low-end expectation for sales this year, given that both Ontario and British Columbia have resolved their internal issues. Additionally, we continue to see growth in store counts and more online / delivery options, which should continue to move cannabis consumers away from the illicit markets.

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

28 October 2022 Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved

October 21, 2022

CANADA CANNABIS SPOT INDEX — October 21, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending October 21, 2022
CCSI image 1 2022-10-21

*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$5.25 per gram this week, down 0.4% from last week’s C$5.27 per gram. This week’s price equates to US$1,732 per pound at the current exchange rate.

Include your weekly wholesale transactions in our price assessment by joining our Price Contributor Network

If you have not already done so, we invite you to join our Price Contributor Network, where market participants anonymously submit wholesale transactions to be included in our weekly price assessments. It takes two minutes to join and two minutes to submit each week, and comes with loads of extra data and market intelligence.

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

21 October 2022 Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved

October 14, 2022

CANADA CANNABIS SPOT INDEX — October 14, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending October 14, 2022
CCSI image 1 2022-10-14

*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$5.27 per gram this week, down 1.3% from last week’s C$5.34 per gram. This week’s price equates to US$1,732 per pound at the current exchange rate.

Include your weekly wholesale transactions in our price assessment by joining our Price Contributor Network

If you have not already done so, we invite you to join our Price Contributor Network, where market participants anonymously submit wholesale transactions to be included in our weekly price assessments. It takes two minutes to join and two minutes to submit each week, and comes with loads of extra data and market intelligence.

SOURE: Cannabis Benchmarks, Health Canada
  • This week Cannabis Benchmarks analyzed Statistics Canada’s data on dry cannabis and cannabis oil exports. As more countries legalize medical cannabis, Canada’s expertise in cultivation methods and quality has made it an export leader. Canada is the largest exporter of cannabis flower and oil in the world, but under the Cannabis Act it is only allowed to export cannabis for medical purposes.
  • Statistics Canada reports both the permitted quantities and the actual quantities that were shipped by licensed producers. The current dataset provides monthly export quantities through December 2021. As seen in the chart above, the growth in exports has been steady, with the majority of the cannabis exports being in the form of dry flower. The peak export month was November 2021 with 4,853 kg equivalent of cannabis exported.
  • In 2021, total cannabis exports reached 31,852 kg, an increase of 86% over the previous year. On a cumulative basis since cannabis was legalized for adult use, a total of 61,334 kg equivalent has been shipped to other countries. Of this product, 87% was shipped as dry flower to countries that have growing medical cannabis markets such as Germany, Israel, Belgium, Croatia, Chile, Brazil, New Zealand, and Australia.
  • In the future, we do not anticipate a significant amount of growth for Canadian cannabis exports. Latin America, Australia, and more progressive European nations are competing with major cannabis exporters like Canada and the Netherlands. Additionally, nations like Germany and Israel who have historically imported medical cannabis are now expanding their local manufacturing capabilities.

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

14 October 2022 Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved

October 7, 2022

CANADA CANNABIS SPOT INDEX — October 7, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending October 7, 2022
CCSI image 1 2022-10-07

*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$5.34 per gram this week, down 0.7% from last week’s C$5.38 per gram. This week’s price equates to US$1,777 per pound at the current exchange rate.

Include your weekly wholesale transactions in our price assessment by joining our Price Contributor Network

If you have not already done so, we invite you to join our Price Contributor Network, where market participants anonymously submit wholesale transactions to be included in our weekly price assessments. It takes two minutes to join and two minutes to submit each week, and comes with loads of extra data and market intelligence.

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

7 October 2022 Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved

September 30, 2022

CANADA CANNABIS SPOT INDEX — September 30, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending September 30, 2022
CCSI image 1 2022-09-30

*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$5.38 per gram this week, down 0.8% from last week’s C$5.42 per gram. This week’s price equates to US$1,781 per pound at the current exchange rate.

Include your weekly wholesale transactions in our price assessment by joining our Price Contributor Network

If you have not already done so, we invite you to join our Price Contributor Network, where market participants anonymously submit wholesale transactions to be included in our weekly price assessments. It takes two minutes to join and two minutes to submit each week, and comes with loads of extra data and market intelligence.

SOURE: Cannabis Benchmarks, Health Canada
  • This week Cannabis Benchmarks analyzed Statistics Canada’s data on household spending to determine the trends in the country’s cannabis market. The data is released every quarter and the most recent dataset provides an overview of consumer spending patterns through Q2 2022. The data set continues to demonstrate strong growth in overall cannabis sales in both legal and illegal markets. Canadians spent C$1.97B on cannabis products in Q2 2022. This is an increase of C$119M, or 6%, from the previous year.
  • Taking a deeper look at the statistics, we can see that legal recreational cannabis sales account for all of the growth. Legal recreational sales increased by 23% between Q1 2022 and Q2 2022, while illicit recreational sales decreased by 15% and sales for medical use decreased by 7% over the same time frame. Better accessibility, cheaper prices, and higher quality are driving growth in the legal recreational market, with that growth coming at the expense of both the legal medical and illicit sectors. In Q2 2022, more than two-thirds of all cannabis sales (recreational + medicinal) were legal. As more shop licenses are issued by provincial governments like British Columbia and Ontario, we believe that this trend will continue.
  • Since the adult use cannabis market opened in October 2018, the medical cannabis market has been contracting steadily. Though the medical cannabis market was relatively small before the opening of the adult use market, sales have shrunk by 30% to C$109M in Q2 2022. For the most recently reported quarter, medical sales made up just 6% of all sales. As noted above, more varied and price competitive product offerings in the recreational market has clearly had an impact on the medical sector, to the detriment of large cultivators that invested extensive capital and resources in developing their medical cannabis business.
  • Cannabis Benchmarks estimates that the total Canadian cannabis market in 2023 will exceed C$8.3B, inclusive of the legal adult use and medical sectors, as well as the illicit market. Of this amount, the pie for legal supply continues to grow with 69% of sales expected to be generated by the legal recreational market next year.

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

30 September 2022 Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved