Canadian Cannabis Sales Drop Again

Statistics Canada released February retail sales for the country, with cannabis sales decreasing from the January levels, down 6.4% to C$376.2 million. On a per-day basis, sales sales rose 0.4%. January was revised higher to C$402.0 million. The sales were up just 3.3% from a year ago. This was down from the 19.8% August growth rate and up from the lowest annual  growth rate since legalization commenced in January of 1.6%.  In 2023, total sales increased 12.5% to C$5.09 billion, and in 2024 they have increased just 2.4% from a year ago.

An increase in the number of stores as well as falling flower prices that bring consumers from the illicit market have been boosting sales. In Ontario, the largest province in population, sales were down 7.1% from January and down 4% from a year ago. Alberta, which is the second-largest province, was down 2.3% from January and up 11% from a year ago. Quebec was down 9.5% from January and up 8% from a year ago, while British Columbia was down 11.3% from January as it fell 15% from a year ago.

Hifyre IQ had forecast February sales at C$394.3 million based upon its data, so this was far below the estimate. The data analytics provider has been estimating March sales to be 8.0% higher, which would be 0.2% above the actual actual February level and up 4.8% from a year ago, based upon its data. Hifyre estimates sales outside of flower and pre-rolls at 32.1% in January and 32.6% in February.

The March sales data will be released on May 24th.