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$6.20 per gram this week, up 1.7% from last week’s C$6.09 per gram. This week’s price equates to US$2,207 per pound at current exchange rates.
This week, Cannabis Benchmarks provide an update on the growing gap between supply and demand in Canada’s legal cannabis market.
Cannabis Benchmarks estimates that the total implied demand for legal cannabis in August 2020 was 25,978 kg, up 81% from August 2019. Even though demand has continued to grow rapidly, August 2020’s estimated demand is less than a quarter of the 112,025 kg of unpackaged production reported by Statistics Canada for the month. The most recent data from Statistics Canada shows cumulative packaged and unpackaged inventory ballooning to 882,938 kg as of August 2020, representing 34 months of supply based on demand levels that month.
Canada’s oversupply has persisted even after many LPs took large write-offs for excess inventory over the past year.
Source: Canada Cannabis Spot Index, Cannabis Benchmarks
