Record Destruction of Cannabis in Canada Points to Market Adjustments and Consumer Trends

NEW YORK- In a striking development, Canadian cannabis operators have destroyed a record amount of legal cannabis in 2022 and the first half of 2023, as per data from Health Canada. This action highlights the ongoing adjustments in the country’s cannabis market since its inception in 2018.

The report reveals that a staggering 611.7 million grams, approximately 1.7 million pounds, of cannabis products and unpackaged cannabis flower were destroyed during this period. This figure accounts for about 16% of the total cannabis production in Canada for 2022. While data for the second half of 2023 is not yet available, trends from the first six months indicate a gradual move towards achieving a supply-demand equilibrium in the industry.

Cannabis industry consultant Farrell Miller attributes the predominant reason for the destruction of packaged cannabis products to their age. According to Miller, there is a lack of demand for older and low-THC products. As consumer awareness grows regarding packaging dates on dried cannabis products, this trend of destruction is expected to continue. The total amount of cannabis destroyed by Canadian operators has now surpassed 3.7 million pounds.

The overproduction of cannabis in Canada, which legalized adult-use cannabis in 2018 as the first North American country to do so, has been a persistent issue. Experts suggest that this is partly because publicly held cannabis companies in Canada were initially valued more for their production capacity than their sales potential.

Despite these challenges, the Canadian cannabis market has shown signs of robust growth. A poll conducted in October last year indicated that 65% of Canadian cannabis consumers prefer the legal market. Furthermore, a report from June 2023 highlighted a 157% growth in the Canadian cannabis industry’s sales over the previous two years, suggesting a positive trajectory despite the current market adjustments. This trend of destruction and growth reflects the evolving nature of the cannabis market in Canada, as it matures and aligns more closely with consumer preferences and market demands.