Although Statistics Canada announced record cannabis sales for the month of May, the numbers came in lower than estimates from leading data analytics provider Hifyre IQ.
During May, Statistics Canada reported C$313.3 million of cannabis sales which is almost 70% higher than May 2020. Hifyre IQ projected C$322 million of sales and the analytics provider expects June cannabis sales data to be modestly higher.
The COVID Delta variant has put pressure on the Canadian cannabis market as additional lockdowns have negatively impacted retail sales. The rise in sales can be primarily attributed to an increase in the number of stores as well as falling flower prices. These two factors are expected to continue to impact the amount of sales in Canada and we forecast a consistent increase in the number of retail outlets.
2021 is proving to be a banner year for the Canadian cannabis industry and we are favorable on how sales numbers are steadily climbing. April and May were the first back-to-back months where the retail market generated more than C$300 million of sales and we consider this to be an important milestone.
In an effort to provide more detailed information on the Canadian cannabis retail market, we have highlighted the performance of four of the largest provinces by providing insight on the growth that such provinces have experience on a year-over-year basis:
- Ontario – sales increased by 170% from a year ago
- Alberta – sales increased by 29% from a year ago
- Quebec – sales increased by 28% from a year ago
- British Columbia – sales increased by 70% from a year ago
According to Hifyre IQ, cannabis flower and pre-rolls are two of the most popular product categories and accounted for 74% of the market. Although we find this percentage to be significant, we expect edibles, beverages and vape pens, to capture additional market share over the next year.
If you are interested in learning more about the Canadian cannabis retail market, please send an email to support@technical420.com with the subject “Canada’s cannabis retail market” to be added to our distribution list.