Each week, Business of Cannabis delivers a series of insights from our partners at Cannabis Benchmarks®.
The Canada Cannabis Spot Index was assessed at C$5.89 per gram this week, down 1% from last week’s C$5.95 per gram. This week’s price equates to US$2,097 per pound at the current exchange.
Last week, Statistics Canada released retail sales data for November 2020. November’s sales reached C$261.4M, down by C$8.5M from October. While monthly sales broke with the previous trend of steady growth, average daily sales were flat from October to November at C$8.7M. Plateauing daily sales occurred even as the number of licensed cannabis retailers open in Canada grew by 18% from September to November. Apart from Ontario, provincial sales data shows flat or declining average daily sales during that period.
November’s data suggests that Canada’s legal cannabis market may have reached a momentary baseline in much of the country. Instead of relatively steady, consistent growth in monthly revenues, we may begin to see more monthly and seasonal fluctuations in consumer demand. However, based on examples from the U.S., this does not mean that overall growth has ceased, nor that annual growth rates will necessarily subside.
Source: Canada Cannabis Spot Index, Cannabis Benchmarks
