Statistics Canada has released cannabis sales figures for April 2022. Canadian cannabis sales increased by 3.7% from the previous month to C$372.4 million.
Compared to April 2021, sales are up 25.8%.
Canadian Cannabis Sales: Details
Statistics Canada cites an increasing number of retail stores and falling flower prices for the boost. We can break down Canadian cannabis sales data province-by-province.
Ontario, the largest province in population, increased sales by 4% from the previous month and up 53% from April 2021.
Alberta, the second-largest province, was up 2% from March and 10% from the previous year.
Despite its restrictive retail model (and striking workers), Quebec was up 18% from March. But, true to form, it only increased 3% of sales from 2021.
Interestingly, British Columbia was down 6% from March and up only 21% from April 2021. Reasons for this may include the proliferation of grey-market shops on Indian Reserves. As well as the popularity and consumer loyalty to BC Bud, of which only a handful hold federal licences. The rest of them remain underground four years after legalization.
Comparing Alberta and Ontario
Ontario began legalization with higher sales than Alberta, with the two provinces equally matched in late 2019. However, since the summer of 2020, Ontario‘s cannabis sales have increased almost exponentially.
This increase in sales corresponds to the drop in cannabis prices. Over the past year, the average unit price has decreased by 13.2%, while the number of units sold continues to trend upward. Since April 2022, the market has amassed $165 million in total sales. And as total sales increase, the prices of cannabis products decrease.
Potential Problems with Canadian Cannabis Sales
Canadian cannabis sales may be trending upward, but competition impacts each store’s revenue. As Ontario has demonstrated, in 2020, the average revenue per store declined from C$100k in average weekly sales to C$20k in 2022. So while Canadian cannabis sales remain strong in Ontario, average revenues have declined for individual retailers.
The average retailer saw negative growth in April 2021, down -3.7% compared to April 2020. Examining April 2022 Canadian cannabis sales, the average Ontario store is now down -14% in revenue.
Toronto Cannabis Stores Consolidate
In response, cannabis retail stores are now consolidating. Consolidation is apparent in Toronto, where, since 2021, cannabis stores have doubled, with roughly 300 in operation in April 2022.
Superette has bought Canoe for $5 million and has acquired Dimes Cannabis.
Dutch Love has closed its doors. Owned by the Donnelly Group, a spokesperson said the company no longer sees the Toronto market as viable due to the saturation of cannabis stores.
It’s a buyer’s market for Canadian cannabis sales.