September 13, 2019

CANADA CANNABIS SPOT INDEX — September 13, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published September 13, 2019

*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$7.22 per gram this week, up 6.3% from last week’s C$6.79 per gram. This week’s price equates to US$2,479 per pound at current exchange rates.

 

This week we examine the Q2 2019 cannabis usage data collected by Statistics Canada through the National Cannabis Survey (NCS).  The survey is conducted each quarter by the government to better understand usage habits and monitor societal changes that might have occurred as a result of legalization. The survey targets Canadians aged 15 and over, and the data for Q2 was collected after the fact, between August 14 and September 12. 

 

According to the report, 4.9 million – or 16.1% – of Canadians used cannabis during the three months ending June 30. With data going back to the beginning of 2018, we can see more Canadians are using cannabis. In Q1 2018, 4.2 million – or 14% – reported using cannabis. We calculated the compound annual growth rate (CAGR) in this metric to be 10.9% when reviewing the data over the past 18 months.

Source: Cannabis Benchmarks, Statistics Canada

The same data for the four largest provinces, which can be seen in the chart below, shows Ontario accounting for the bulk of Canadian cannabis usage. Ontario CAGR was calculated to be 16.9% over the past 18 months, while Alberta also had significant growth with a CAGR of 15.4%. We expect the upward trend in usage to continue as more retail outlets open to increase availability; legal products expand to include edibles, extracts, beverages and topicals; and cannabis education continues to develop.

Source: Cannabis Benchmarks, Statistics Canada

The survey also breaks out usage habits by gender. Although it dropped from Q1, male consumption has continued to grow overall with 3 million Canadian males reporting using cannabis in the last quarter. Growth in male consumption has been robust, with a CAGR of 18.7% since the beginning of 2018. Female usage has been relatively flat with 1.9 million females reporting using in Q2 2019, and a CAGR of only 0.2%.

Source: Cannabis Benchmarks, Statistics Canada

The data from the NCS also drills into the differing methods of both obtaining and consuming cannabis products post-legalization. The data clearly shows that males are more likely to consume cannabis more frequently for non-medical use, buy their cannabis, and smoke flower over other derivative products. Meanwhile, only 12% of females report using cannabis and are more inclined to use to alternatives such as lotions and orally consumed products.

Source: Cannabis Benchmarks, Statistics Canada

*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..

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13 September 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved