Canada’s cannabis retail sales grew for the fifth consecutive month in July, topping CAD$440m to reach the highest level so far in 2024.
According to the latest data from Statistics Canada, total retail cannabis sales grew by 1.6% compared to June.
Despite the marginal growth, July’s figures represented a 3.9% decline compared to the same period a year earlier.
This continues a trend of slowing market growth, with annual sales down 0.8% so far in 2024. While provinces like Alberta and Quebec saw year-over-year growth of 5% and 19% respectively, Ontario and British Columbia both reported significant year-over-year declines of 14% and 12%.
The market’s growth has been limited by factors such as price compression, which continues to impact revenues, despite an increase in the number of stores and competitive pricing driving consumers away from the illicit market.
For instance, Ontario’s cannabis sales rose 3.8% month-on-month, but year-over-year declines have been stark. British Columbia reported a 2.7% drop in sales from June to July, with a 12% annual decline.
Despite these numbers, industry estimates had expected stronger performance, with Hifyre IQ forecasting July sales to reach C$476 million. Their predictions for August suggest a 2.8% increase, potentially pushing sales 4.4% higher year-over-year.
While the legal market continues to expand, price pressures and competition from the illicit market, including online and brick-and-mortar stores, are limiting growth.
The number of new cannabis stores has slowed, and a recent surge in personal cannabis production licenses could indicate that more consumers are seeking alternatives to purchasing retail cannabis.
The post Canada’s Cannabis Sales Rise For 5th Consecutive Month, But 2024 Continues to Lag Behind Previous Years appeared first on Business of Cannabis.
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