CANADA CANNABIS SPOT INDEX (CCSI)
*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$5.05 per gram this week, up 0.6% from last week’s C$5.02 per gram. This week’s price equates to US$1,779 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.
This week Statistics Canada released retail sales data for October 2021, with nationwide legal cannabis sales reaching a new monthly high of C$365.1M. This is the first month where sales have exceeded the C$360M threshold, which puts the current annual run rate at C$4.32B. While illicit sales currently make up nearly half of the nation’s total retail cannabis market, the proportion of the illicit market is quite different from province to province. Last week we reported on the size of Ontario’s illicit market, which was 45.8% of total cannabis sales, according to the Ontario Cannabis Store’s latest quarterly report.
To correct for the different number of days in each month, we look at average daily sales. As seen in the chart below, October 2021 sales reached C$11.75M per day. This is slightly lower than the previous month, which was at C$11.8M per day.
This week, as we did this past October, we sliced up the above data to calculate the average monthly sales per cannabis user. Each province has a different usage rate that is estimated by Statistics Canada through a quarterly survey. With the last quarterly survey being conducted in Q4 2020, we made some adjustments to this baseline to account for new cannabis users, as well as better accessibility to legal cannabis; a change that has enabled customers to transfer their purchasing habits from the illicit market to the legal markets. Overall, we estimate that 17% of the Canadian population consumes cannabis.
This is a flow diagram of the calculation we performed for each province.
Cannabis Benchmarks®, a division of New Leaf Data Services, LLC
24 December 2021 Copyright © 2021 New Leaf Data Services, LLC. All rights reserved