Canadian Cannabis Retail Sales Show Modest Growth in May

TORONTO– Statistics Canada has recently released the May retail sales figures for cannabis in the country, revealing a moderate increase from April levels. According to the report, cannabis sales rose by 1.2%, reaching C$415.6 million. These numbers come after a slight downward revision for April sales, which were adjusted to C$410.6 million. On a per-day basis, the sales experienced a 2.1% decline, but compared to the previous year, May sales saw an 11.2% surge, surpassing the 10.0% growth rate observed in April.

In the broader context of 2022 and 2023, the cannabis industry has been displaying positive trends. Last year, total sales surged by 17.9%, reaching C$4.52 billion. This growth has continued into 2023, with sales increasing by 12.1% so far.

The increase in cannabis sales has been partly attributed to two factors: a rise in the number of cannabis stores across the country and a decline in flower prices, which has encouraged consumers to shift away from the illicit market.

Notably, the largest province by population, Ontario, witnessed a 1.5% sales increase from April and an impressive 10% increase from the previous year. Alberta, the second-largest province, also experienced growth, with sales rising by 2.3% from April and 11% from the previous year. Quebec showed promising results as well, reporting a 7.9% sales increase from April and a 4% rise from the previous year. However, British Columbia faced a slight setback with a 5.4% decline from April, despite a noteworthy 18% surge from the previous year.

Hifyre IQ, a prominent data analytics provider, had forecasted May sales to reach C$429.3 million based on its data analysis. The actual figures of C$415.6 million came as a negative surprise, indicating a deviation from their projections. Looking ahead to June, Hifyre IQ predicts a 0.4% decrease in sales, which would be 2.9% higher than the actual May level and a 13.1% increase from the previous year, based on their data. Hifyre IQ also estimates that sales outside of flower and pre-rolls accounted for 30.1% in May and are expected to reach 30.0% in June.

The cannabis industry’s performance in May demonstrates continued growth, albeit with some fluctuations in sales across different provinces. Analysts and market participants will keep a close eye on upcoming data to gauge the overall trajectory of the Canadian cannabis market.