The CCSI was assessed at C$5.02 per gram this week, lower from last week’s C$5.05 per gram. This week’s price equates to US$1,791 per pound at the current exchange rate.
Each week, Business of Cannabis delivers a series of insights from our partners at Cannabis Benchmarks®.
This report focuses on the proportion of sales dedicated to cannabis 1.0 and 2.0 products in Ontario. As a reminder, cannabis 1.0 references the legalization of combustible cannabis flower, cannabis oils, and cannabis seeds in October 2018.
A year later cannabis 2.0 began; making available to consumers derivative products such as vapes, edibles, beverages, concentrates, and topicals. The data aggregated in today’s CCSI report reviews a series of OCS quarterly reports to compile a complete view of the trends following the introduction of cannabis 2.0 products.
Cannabis 2.0 products created a lot of excitement ahead of their legalization and sales from the different product categories were expected to grow rapidly.
With over two years of data, however, we currently see that cannabis 2.0 products make up only a small portion of total sales. As seen in the chart above, total cannabis sales in Ontario have been accelerating with the rapid build-out of brick-and-mortar stores. Since its full roll-out, however, cannabis 2.0 product sales have averaged approximately 23% of total legal Ontario cannabis sales.
The cannabis industry was hoping for cannabis 2.0 products to capture a larger proportion of sales dollars, as they generally command a premium for the same cannabis input and the product differentiation would pull consumers towards legal supply channels. Consequently, these stats are likely disappointing to Canadian cultivation and processing businesses, which had placed large bets on the cannabis 2.0 release.
Source: Canada Cannabis Spot Index, Cannabis Benchmarks
See previous weekly updates from Cannabis Benchmarks:
- 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
- Understanding the impact of cannabis on alcohol sales in Canada
- A look at cannabis retail store count by Province
- A look at cannabis user statistics in Canada
