A look at Statistic Canada’s household expenditure data

5 mins read

The CCSI was assessed at C$5.38 per gram this week, down 0.8% from last week’s C$5.42 per gram. This week’s price equates to US$1,781 per pound at the current exchange rate.

Each week, Business of Cannabis delivers a series of insights from our partners at Cannabis Benchmarks®.

This week Cannabis Benchmarks analyzed Statistics Canada’s data on household spending to determine the trends in the country’s cannabis market. The data is released every quarter and the most recent dataset provides an overview of consumer spending patterns through Q2 2022. The data set continues to demonstrate strong growth in overall cannabis sales in both legal and illegal markets. Canadians spent C$1.97B on cannabis products in Q2 2022. This is an increase of C$119M, or 6%, from the previous year.

Taking a deeper look at the statistics, we can see that legal recreational cannabis sales account for all of the growth. Legal recreational sales increased by 23% between Q1 2022 and Q2 2022, while illicit recreational sales decreased by 15% and sales for medical use decreased by 7% over the same time frame. Better accessibility, cheaper prices, and higher quality are driving growth in the legal recreational market, with that growth coming at the expense of both the legal medical and illicit sectors. In Q2 2022, more than two-thirds of all cannabis sales (recreational + medicinal) were legal. As more shop licenses are issued by provincial governments like British Columbia and Ontario, we believe that this trend will continue.

Cannabis Benchmarks estimates that the total Canadian cannabis market in 2023 will exceed C$8.3B, inclusive of the legal adult use and medical sectors, as well as the illicit market. Of this amount, the pie for legal supply continues to grow with 69% of sales expected to be generated by the legal recreational market next year.

Source: Canada Cannabis Spot IndexCannabis Benchmarks

See previous weekly updates from Cannabis Benchmarks:

Canadas Unpackaged Cannabis Production graph
Previous Story

A look at unpackaged cannabis production in Canada

Next Story

Exploring daily retail cannabis sales in Canada

0 $0.00