Cannabis sales continue to show signs of levelling off in Canada

| David Brown

Cannabis sales showed some upward movement in the first half of 2024, but increases did not surpass those previous highs in much of the first half of 2023, as the annual growth of the market appears to be finding a ceiling.

Unadjusted retail cannabis sales in Canada continued to rebound through July from steep seasonal declines in January, but sales were down year-over-year from March through July compared to 2023. 

When looking at the same figures adjusted for seasonal changes, July 2024 was down 1.8% from June and 3.8% compared to July 2023. Provincially, those declines appear to have been most pronounced in Ontario, British Columbia, and Saskatchewan.

While price compression is likely a factor in slowing overall sales figures, price compression has been an issue facing the industry for years now, even as overall sales continue to increase. 

One change in the market is that the number of new stores has been slowing in the last year, which has correlated with increased sales since legalization began. Another possible factor is the increasing number of options consumers have in the illicit market, both brick-and-mortar and online stores. 

Interestingly, after several years of declines, those registering to grow their own cannabis under designated and personal production licences for cannabis for medical purposes were increasing in the first half of 2024, despite greater oversight by Health Canada.

StratCann will continue to watch these monthly sales figures as they evolve to better understand these changing market factors.


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