Michael Armstrong, An Associate Professor At Brock University, Who Studies The Canadian Cannabis Market, Said That While Year-over-year Growth Was Still Strong, Growth Was Starting To Slow And That The Growth in Adult-use Cannabis Sales Was Largely Driven By An Increase in The Number Of Stores.
In Ontario, Canada's most populous province and the largest cannabis market, the number of cannabis shops will not grow until the summer of 2022. In most other provinces, the number of cannabis shops is growing slowly. Alberta is approaching Ontario, but the province already has a large number of cannabis shops, so the boost to sales will be weakened.
Canada now has about 3,700 cannabis shops and retail licenses, with Ontario accounting for nearly 1,700.
Armstrong said growth in the total number of stores has stalled. Unless there are new reforms, such as big cities such as Richmond, British Columbia, or Mississauga, Ontario, allowing marijuana retail, or provincial governments taking a more lenient approach to cannabis consumption, he expects future growth in the cannabis market to come from "slow and gradual population growth, and perhaps a little boost from product innovation." "
Cannabis sales hit a record in December
After two consecutive months of month-on-month declines in October and November, Canada's recreational cannabis sales reached a record $425.9 million in December, up 13.8% from a revised $374.3 million in November and a month-to-day adjusted month-on-month growth rate of 10.1%.
Cannabis sales in Manitoba, Canada, led the 21.7% increase to C$18.3 million in December, with other provinces and territories also seeing sequential growth, as follows (in order of market size):
Ontario: $171.2 million (+15.1%)
Alberta: $73.8 million (+11.1%)
British Columbia: $63.1 million (+13.3%)
Quebec: $54.6 million (+12.7%)
Saskatchewan: $17 million (+10%)
Nova Scotia: $9.9 million (+15.2%)
New Brunswick: $7.6 million (+14.3%)
Newfoundland and Labrador: CAD 6.4 million (+13.8%)
Prince Edward Island: $2 million (+10%)
Yukon: $966,000 (+13.4%)
