Is The Cannabis Market Stagnating In Canada? Sales Show Slowest Annual Growth To Date In August

Sales growth in Canada appears to be stagnating for the cannabis sector.

Statistics Canada released August retail sales for the country reporting that cannabis sales increased from July by 0.2% to CA$393.7 million ($288 million).

In August, sales increased 13.0% from one year earlier, down from July's 17.2% growth rate. The growth was the lowest since legalization began," wrote Alan Brochstein, CFA and founder of New Cannabis Ventures and 420 Investor.

Image by New Cannabis Ventures

Brochstein's new report noted however that "an increase in the number of stores, as well as falling flower prices that bring consumers from the illicit market, have been boosting sales."

Canadian Provinces ‘Weed’ Sales

Moreover, "in Ontario, the largest province in population, sales were down 2.2% from July and up 15% from a year ago, reflecting the increase in the number of stores. Alberta, which is the second-largest province, was down 2.9% from July and up 11% from a year ago,” states the report.

Quebec “was up 1.9% from July and down 2% from a year ago, while British Columbia was up 10% from July as it advanced 27% from a year ago," according to Statistics Canada.

What Does The Data Say?

Hifyre IQ, which “forecasted August sales of CA$392.6 million ($287 million) based on its data, now estimates that September sales to be 4.6% lower, which would be 4.9% below the actual level and up 7.7% from a year ago.”

The data analytics provider estimates non-flower sales at 28.9% in August and 28.8% in September, noted Brochstein.

Image by New Cannabis Ventures

September sales data will be released on November 22.
Main Picture by PiggyBank On Unsplash.