Canadian Cannabis Sales Growth Has Slowed

Statistics Canada released May retail sales for the country, with cannabis sales increasing from the April levels, up 5.8% to C$434.5 million. On a per-day basis, sales sales rose 2.4%. April was revised much lower to C$410.5 million. The sales were up just 4.5% from a year ago. This was down from the 19.8% August growth rate and up from the lowest annual  growth rate (in April) since legalization commenced of unchanged.  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 5.3% from April and down 12% from a year ago. Alberta, which is the second-largest province, was up 23.8% from April and up 6% from a year ago. Quebec was up 21.0% from April and up 30% from a year ago, while British Columbia was down 6.1% from April as it fell 2% from a year ago.

Hifyre IQ had forecast May sales at C$459.3 million based upon its data, so this was far below the estimate. The data analytics provider has been estimating June sales to be 0.8% lower, which would be 4.8% above the actual actual May level and up 4.1% from a year ago, based upon its data. Hifyre estimates sales outside of flower and pre-rolls at 30.2% in May and 30.1% in June.

The June sales data will be released on August 23rd.