High Points
- Canadian cannabis sales in 2022 rose by nearly 18% compared to the previous year, reaching $4.52 billion.
- The increase in sales is linked to the rise in the number of licensed cannabis stores in Canada.
- The sales growth rate is slowing down, with future growth expected to come from population growth and product innovation.
- December 2022 saw a monthly record high of $425.9 million in recreational cannabis sales, with Manitoba leading the way in monthly sales growth.
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Canadian cannabis sales continue to increase year over year, with 2022 seeing an almost 18% rise. This is a promising trend, but the rate of growth appears to be slowing down. The country has roughly 3,700 cannabis stores and retail licenses, including almost 1,700 in Ontario. The number of retail outlets affects the cannabis sales trend across the country, with Ontario leading the way as the most populous province and most valuable marijuana market.
The rise in sales is related to the increase in licensed cannabis stores in Canada, with Ontario and Alberta being the most significant contributors. According to Michael Armstrong, an associate business professor at Brock University, the growth of the cannabis market is primarily due to the number of stores. Without new developments such as major cities permitting cannabis retail or provincial governments becoming more permissive toward consumption lounges, Armstrong expects market growth to come from slow, gradual population growth and product innovation.
December 2022 was a record month for recreational cannabis sales in Canada, with $425.9 million spent. Manitoba led the way in monthly sales growth, with an increase of 21.7%, reaching $18.3 million. Cannabis sales also grew on a monthly basis in every other province and territory tracked by Statistics Canada. However, Armstrong expects January and February to be slower months before sales recover in March, as seen in other retail sectors.
Seasonal holiday spending played a role in the high Canadian Cannabis sales figures for December, with a predicted drop in sales for January.
In conclusion, the Canadian cannabis market is continuing to grow, with sales increasing due to the rise in licensed cannabis stores across the country. Although the growth rate is slowing down, future market growth is expected to come from gradual population growth and product innovation. December 2022 saw a record month for cannabis sales, largely due to seasonal holiday spending. While January and February are expected to be slower months, the market is likely to recover in March.
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