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

September 23, 2022

CANADA CANNABIS SPOT INDEX — September 23, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending September 23, 2022
CCSI image 1 2022-09-23

*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$5.42 per gram this week, up 0.7% from last week’s C$5.38 per gram. This week’s price equates to US$1,834 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

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

September 16, 2022

CANADA CANNABIS SPOT INDEX — September 16, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending September 16, 2022
CCSI image 1 2022-09-16

*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 1.2% from last week’s C$5.45 per gram. This week’s price equates to US$1,854 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
  • Cannabis Benchmarks conducted their monthly store count check, and we are starting to see a slowdown in new store openings across many provinces. The current store count across Canada as of the end of August 2022 sat at 3,297, which is 868 more than last year.
  • The intense competition amongst closely located retailers in Alberta is driving a wave of store closures. Based on our count since the inception of legal recreational cannabis markets, this was the first time that net cannabis stores in the province dropped month-on-month. The store count in Alberta currently sits at 762. One of the positives for Alberta cannabis retailers has been the closure of the government-run online cannabis store, which occurred in March. This has pushed consumers to private retailers that are now permitted to sell online, direct-to-consumer.
  • Ontario is now host to 47% of the stores currently open across Canada, which makes sense given its immense population. That being said, growth in stores has slowed considerably in 2022, with many pockets of the province starting to hit saturation points. As with Alberta, we expect Ontario to start to see some store closures and some potential openings to more evenly space the stores.
  • British Columbia is another closely-watched market with a strong history of illicit grow operations. From August 15-30, a public sector labor dispute resulted in the closure of BC Liquor Distribution Branch (LDB) cannabis distribution centers. As a result,  many stores were temporarily shut down due to lack of product. Additionally, the province-run online store stopped sales and is still not taking any new orders as it tries to catch up.

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

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

September 9, 2022

CANADA CANNABIS SPOT INDEX — September 9, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending September 9, 2022
CCSI image 1 2022-09-09

*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$5.45 per gram this week, up 0.4% from last week’s C$5.43 per gram. This week’s price equates to US$1,883 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 June retail cannabis sales for the country. Sales increased from May by C$3.9M to C$377.5M. To correct for the different number of days per month, we look at the data in terms of average daily sales. The latest data shows average daily sales jumped to C$12.5M in June, an increase of 4.4% from May and a new record. The growth in sales comes with the increasing store counts and more flexible online / delivery options. The better accessibility continues to pressure the illicit market’s share of total cannabis sales in the country.
  • The continued increase in legal cannabis store counts is putting immense pressure on the retail sector as overall sales per store slide (as seen in the chart above). At the national level, average store sales have dropped by 37% from C$185,000 / month to C$117,000 / month in the 18 month time period from January 2021 to June 2022. During the same timeframe, Ontario saw a drop of 55% in average sales per store, with retailers opening in the province at a rapid rate. Meanwhile, Alberta saw a drop of only 16%, as an already large retail footprint was established earlier on, shortly after the legal market opened in late 2018.
  • Another figure to highlight is the number of people each store potentially serves. In January 2021, the average store potentially served over 25,000 people. Today that figure has dropped to one licensed store for fewer than 12,000 Canadians. [Note: These figures do not correct for age.]
  • If sales continue at the daily run rate for June, we should exceed C$4.41B in sales for 2022. (That calculation assumes a daily sales average of C$12.5M between June and December.) This should paint the low-end of expected sales this year, as the June figures precede the peak summer season, which generally sees higher seasonal sales, along with the end-of-year holiday period.

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

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

September 2, 2022

CANADA CANNABIS SPOT INDEX — September 2, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending September 2, 2022
CCSI image 1 2022-09-02

*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$5.43 per gram this week, up 1.3% from last week’s C$5.36 per gram. This week’s price equates to US$1,878 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 June retail cannabis sales for the country. Sales increased from May by C$3.9M to C$377.5M. To correct for the different number of days per month, we look at the data in terms of average daily sales. The latest data shows average daily sales jumped to C$12.5M in June, an increase of 4.4% from May and a new record. The growth in sales comes with the increasing store counts and more flexible online / delivery options. The better accessibility continues to pressure the illicit market’s share of total cannabis sales in the country.
  • The continued increase in legal cannabis store counts is putting immense pressure on the retail sector as overall sales per store slide (as seen in the chart above). At the national level, average store sales have dropped by 37% from C$185,000 / month to C$117,000 / month in the 18 month time period from January 2021 to June 2022. During the same timeframe, Ontario saw a drop of 55% in average sales per store, with retailers opening in the province at a rapid rate. Meanwhile, Alberta saw a drop of only 16%, as an already large retail footprint was established earlier on, shortly after the legal market opened in late 2018.
  • Another figure to highlight is the number of people each store potentially serves. In January 2021, the average store potentially served over 25,000 people. Today that figure has dropped to one licensed store for fewer than 12,000 Canadians. [Note: These figures do not correct for age.]
  • If sales continue at the daily run rate for June, we should exceed C$4.41B in sales for 2022. (That calculation assumes a daily sales average of C$12.5M between June and December.) This should paint the low-end of expected sales this year, as the June figures precede the peak summer season, which generally sees higher seasonal sales, along with the end-of-year holiday period.

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

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

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