The CCSI was assessed at C$5.41 per gram this week, down 0.4% from last week’s C$5.43 per gram. This week’s price equates to US$1,911 per pound at the current exchange rate.
Each week, Business of Cannabis delivers a series of insights from our partners at Cannabis Benchmarks®.
- Statistics Canada recently published unpackaged production data through the end of 2021. The agency had previously released unpackaged production data through September 2021. The latest data shows that, through the end of 2021, total Canadian unpackaged production continued to hover slightly above 2020 levels. For 2021, total unpackaged cannabis production totalled 1.62M kg, or 9.6% more than 2020.
- Despite several significant cultivators closing growing facilities, as we reported last month, production still increased. This indicates that a sizable portion of the licensed growing area has been grossly underutilized, and that additional closures may be on the horizon. Total licensed indoor growing area dropped by 10% in 2021, according to Statistics Canada.
- While indoor growing facilities close, we see craft growers turning to outdoor cultivation in the cold Canadian climate. Though legal cannabis produced from outdoor cultivation is frequently thought to be of lower quality, it has significantly lower production costs, making it more competitive with illicitly-produced supply. While outdoor-grown cannabis might not be as marketable for smoking compared to indoor-grown flower, cannabis grown outdoors is ideal as a raw material for extraction and the production of cannabis 2.0 products like edibles, beverages, and vapes. In 2021, the reported data shows that the country’s licensed outdoor growing area jumped by 62% year-on-year to peak at 713 acres.
- Nevertheless, despite the growth in outdoor cultivation, Cannabis Benchmarks estimates outdoor-grown cannabis still makes up a relatively small portion of Canada’s overall cannabis production. Cannabis Benchmarks estimates the total Canadian outdoor cannabis cultivation volume in 2021 to be approximately 210,000 kg, or approximately 13% of overall unpackaged production. This proportion is consistent with 2020. As more cannabis is cultivated outdoors, we anticipate that outdoor-grown cannabis will have a significant impact on the landscape of Canadian cultivation.
Source: Canada Cannabis Spot Index, Cannabis Benchmarks
See previous weekly updates from Cannabis Benchmarks:
- A look at legal vs illegal recreational cannabis spending
- 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
