Cannabis Sales In Canada Hit $309.7M In April, Michigan Sales Dip In May As Prices Drop

Cannabis Sales In Canada Spike 74% YoY To $309.7M in April

Cannabis sales in Canada hit CA$309.7 million ($251.7 million) in April, representing a 3.8% increase compared to March and a 73.6% year-over-year spike, according to new data from Statistics Canada.

After kicking off 2021 with two consecutive sequential declines of 6%, Canadian cannabis sales are back on track, having climbed 14% in March followed by a slight increase in April.

According to Hifyre IQ, a data analytics provider, May sales are expected to rise by 1% compared to April and 69% year-over-year. The May sales report is expected on July 23.

Despite COVID lockdowns that negatively affected retail sales, an increasing number of new stores and lower flower prices are providing a boost.

Breaking down sales data by province, Ontario sales rose by 5% from March to CA$108.2 million and 169% compared to April 2020. In Alberta, Canada's second-largest province after Ontario, sales hovered around CA$59 million for the second consecutive month.

Hifyre IQ's data also revealed that flower and pre-rolls represent 74% of the market.

Michigan Cannabis Sales Slightly Down In May, Prices Plunge

Cannabis sales in Benzinga's home state of Michigan totaled $148.9 million in May, dropping by 3% month-over-month.

According to the Michigan Marijuana Regulatory Agency, medical cannabis sales declined 1.5% year-over-year and 8% to $44.5 million, while recreational sales dropped by 1% sequentially to $104.4 million, representing a 165.6% increase compared to the same month of 2020.

The adult-use market is growing more rapidly, with flower and trim sales accounting for 58% of the market in May, up from 56% in January and February and unchanged from the previous two months.

Flower pricing for recreational use fell by 10% from April 2020 and 46% from May 2020 to $3,539 - the average price per pound.

When Michigan launched cannabis sales on Dec. 1, 2019, residents spent $221,000 on the first day of sales. The state generated $985 million in cannabis sales in 2020 and by 2021, combined sales amounted to $661.9 million to date, representing an increase of 142%.

Photo by Adeolu Eletu on Unsplash