Although Canadian cannabis stocks have come under considerable pressure in 2021, the size of the market continues to grow and this is a trend we are monitoring closely.
According to Statista Canada, the recreational cannabis market is expected to represent $ 5.9 billion in 2022. By 2026, the firm expects the Canadian recreational cannabis market to be a market of CAN $ 8.6 billion. , which implies growth of more than 100% since 2021.
The most recent data on sales outside Canada was for October. During the month, there were C $ 354 in retail cannabis sales in Canada, which is an increase of over 35% year over year. This amount was almost 3% higher than the previous month and data for November is expected to be released at the end of January.
While we are impressed with how the market has grown from 2020, October’s numbers are lower than Hifyre IQ’s forecast of C $ 360 million. The data analytics provider expects cannabis retail sales in Canada in November to be lower than reported for October and we will monitor the trend for continued until the end of the year. .
The Canadian cannabis industry continues to be negatively impacted by COVID closures and we will be monitoring how this factor plays a role in moving the industry forward in 2022. Although COVID has been a hindrance to growth, the sector Canadian cannabis has benefited from an increase in the number of retail outlets as well as lower prices for flowers.
In Ontario (the largest province in terms of population), sales were up 3.0% from September and 77% from a year ago, reflecting the increase in the number of stores. Sales in Alberta (the second largest province in terms of population) increased 4% from September and 12% from a year ago. We will be monitoring the performance of these two provinces in 2022 and we would not be surprised to see other provinces gain market share.
Hifyre IQ released data on the type of cannabis products that were sold in October and dried flowers and pre-rolls continued to dominate the market. The data analytics company said these two categories accounted for over 70% of sales in October and we expect Cannabis 2.0 products to capture additional market share in 2022.
One of the reasons we follow the Canadian cannabis market closely has to do with the influence it has in growing international markets. In 2022, we expect the market to be heavily focused on Canadian companies that leverage Germany and / or Mexico. We expect these countries to steal much of the international cannabis headlines in 2022 and believe our readers should be aware of this possibility.
The other international markets we focus on are Australia, Argentina, Chile, Colombia, Ecuador, Malta, Peru, Thailand, United Kingdom and Uruguay. If you would like to learn more about Canadian companies having influence in these emerging markets, please email email@example.com with the subject “Canadian Cannabis Leaders” to add to our mailing list.
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