The CCSI was assessed at C$5.29 per gram this week, up 1.3% from last week’s C$5.22 per gram. This week’s price equates to US$1,862 per pound at the current exchange rate.
This week, Cannabis Benchmarks’ total Canada-wide adult use cannabis store count reached a new high of 3,231 as of June 30. This figure represents an increase of 606 stores during the first half of this year.
Each province is on a different trajectory this year based on provincial rules and regulations on retail licensing:
Alberta’s store count looks to have reached a saturation point, having stalled at 759. The province continues to lead Canada in terms of stores per capita, but we believe the retail footprint is currently overbuilt, which will likely result in closures. Alberta also recently closed its provincial online store and gave private retail operators the ability to open their own online stores.
In Quebec, where all licensed retailers are owned and operated by the provincial government, growth in the retail footprint has been negligible. The lack of convenient access to the legal market is bolstering illicit operators and helping them maintain market share, despite the Quebec government’s claims of a dying illicit supply.
British Columbia’s store count continues to grow at a steady rate, but is still significantly behind that of Alberta, its less populated neighbor.
The number of retailers in Ontario continues to grow at a strong rate, but much slower than the exceptional growth seen in 2021. The 2021 rush was initiated by a move to streamline the province’s licensing protocol, which included doing away with a very stringent lottery system.
At current growth rates, Cannabis Benchmarks is projecting 3,511 licensed stores open across Canada by the end of 2022. The increased store presence will heighten competition, continue to push retail prices lower, and further pressure margins. That said, lower retail prices could help the legal market continue to expand its share of total cannabis sales at the expense of illicit supply. From the store operator’s point of view, then, lower prices may be offset by increased sales volume.
See previous weekly updates from Cannabis Benchmarks:
- A look at Canada’s latest retail cannabis sales data
- A complete view of trends following the introduction of cannabis 2.0 products.
- The ongoing battle between legal and illegal cannabis sales in Ontario
- How legal cannabis sales in Canada have impacted alcohol sales
- Understanding the current cannabis store county in Canada right now
- Canadian cannabis market fundamentals right now
- 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