Cannabis Sales In Canada Drop By 20% While Pre-Roll Products Increase Market Share

Cannabis sales in Canada have experienced significant growth, with a 157% increase from May 2020 to May 2023, according to data analytics company Headset.

However, the growth rate has been declining over the past three years, with sales increasing by 88.3% between 2020 and 2021, but only by 11.8% between 2022 and 2023.

The growth in sales is primarily driven by an increase in the number of stores rather than growing consumer demand. Data also shows:

• Store count has grown by around 40% in Ontario
• Average monthly sales per store have dropped by approximately 20% in the past year.
• Flowers has seen its share of total sales decrease by 15.8% in the past year.
• Pre-roll products have increased their market share by 23.5%
• The number of brands in the Canadian market has grown by 369% since 2020.
• The median total sales per brand have decreased by 70% in the same period, indicating increasing competition and concentration in the market.
• Inhalable product prices, such as flowers, have flattened since the start of 2022 after a period of price compression. Non-inhalable products have seen a 25.3% price drop, influenced by consumer preference for higher THC limits in edible packages, per the report.

See Also: Cannabis Is Now Legal In Canada: Industry Insiders Discuss What It Means For Stocks, International Market

Meanwhile, Smith Falls, Canada-based Canopy Growth Corp. CGC recently reported a net loss of CA$ 3.3 billion for the fiscal year ended March 31, 2023, underscoring the struggles within the sector.

Slowing demand, intensified competition, and pricing pressures are among the factors contributing to the slowdown in sales growth, per Green Market Report.

Separately, food bank visits in British Columbia have increased by 5% since 2019, with 131,000 annual visits recorded, according to Food Banks B.C. Customers of B.C. liquor and cannabis stores have raised nearly $950,000 for local food banks during a recent holiday campaign, bringing the total raised since April 2020 to over $3.4 million, reported Vancouver Sun.

Read More: Canada's Top CEO Raj Grover Talks Cannabis And Future Of Retail: Here's How To Meet Him In Person

Photo: Courtesy Of Guillaume Jaillet On Unsplash

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.