The CCSI was assessed at C$5.12 per gram this week, up 1.1% from last week’s C$5.07 per gram. This week’s price equates to US$1,846 per pound at the current exchange rate.
In this week’s report, Cannabis Benchmarks reviews data released by Statistics Canada, which expands our understanding of the state of cannabis market fundamentals. The data set they focus on this week shows monthly dry cannabis unit production and sales data through September 2021. We discover the dynamics are changing rapidly with this latest installment of data, which spans from April 2021 to September 2021.
The chart above shows monthly dry cannabis packaged production alongside total cannabis sales. Both monthly data sets are reported on a packaged unit basis rather than volume.
As the chart illustrates, both production and sales were increasing at a steady rate in the first few years of legalization. However, with the exception of the COVID shutdown periods during Q2 2020, production consistently outpaced sales, with the excess production each month either being destroyed or pushed into storage facilities. As with most commodity markets, a steady increase in inventory leads to weakening wholesale prices. While declining prices typically result in an increase in sales in the short term, over the longer term producers need to cut production to correct the imbalance.
As of last September, the data indicates that production cuts are finally being made to move supply closer in line with demand, with a number of cultivators closing production facilities. A better supply/demand balance should be good news for the cannabis markets as a whole, and should be seen as another sign of a maturing market.
See previous weekly updates from Cannabis Benchmarks:
- How the growth of outdoor cannabis cultivation impacts Canadian cannabis
- Canadian cannabis retail store count right now
- Flattening cannabis sales part of a common trend?
- Cannabis sales and store insights from BC
- Cannabis store count in Alberta right now
- A look at monthly cannabis sales in Canada
- How to compare annual cumulative cannabis sales in Canada
- Canadian cannabis consumer and patient trends right now
- Daily cannabis spend per consumer in BC now
- Canadian retail store counts right now
- A look at average daily cannabis sales in Canada
- Future growth of cannabis retail in Alberta
- Retail store counts in Canada right now
- The mix of cannabis products in Ontario right now
- How to understand legal and illicit cannabis sales
- Comparing legal and illicit cannabis purchases right now
- A look at cannabis retail store counts in Canada
- A look at daily cannabis retail sales in Canada
- Legacy and legal cannabis sales three years after legalization?
- How to understand cannabis’ impact on alcohol sales in Canada
- Understanding cannabis retail store growth in Canada
- A look at average monthly spend per cannabis consumer
- A look at processing licenses issued by Health Canada
- A look at cultivation licenses issued by Health Canada
- Understanding medical versus recreational sales right now
- A look at daily cannabis sales by Province
- How to view dry cannabis sales across Canada
- A look at percentage of legal versus illicit cannabis sales
- A look at the pace of growth for cannabis retail
- A look at monthly cannabis sales in Ontario
- What is the optimal number of cannabis stores in Canada?
- How to compare daily cannabis retail sales by Province
- Understanding the impact of cannabis on alcohol sales in Canada
- A look at cannabis retail store count by Province
- A look at cannabis user statistics in Canada