Cannabis Benchmarks has modified its projections for Canadian recreational cannabis sales in 2020.
We believe that the COVID-19 pandemic and accompanying mitigation measures will alter purchasing habits in a way that will bring more consumers into the legal market, driving increased sales. Depressed sales in April and May will be offset by a spike in March, and subsequent sales could benefit if new consumer habits persist after the virus abates.
Still, our downside projections would result in sales coming in 5% lower than the pre-COVID-19 base case. However, upside projections show sales almost 12% higher than our previous outlook, with 2020 recreational cannabis sales reaching over C$2.5 billion.
Source: Canada Cannabis Spot Index, Cannabis Benchmarks
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