VFF - How Much Do Canadians Spend On Marijuana? A Look At Third Quarter 2023 Sales Data | Benzinga
Five years into its legalization, the Canadian cannabis market reveals intriguing regional disparities and growth trends, as highlighted in the latest report from cannabis equity research firm Zuanic & Associates.
Despite the usual market drivers like affordability, access, and variety, Canada emerges as an outlier.
The report delves into how lower prices and an abundance of retail stores are counterbalanced by factors such as high excise taxes, product caps, strict packaging regulations, and marketing restrictions, which collectively contribute to the nation's lower spending levels in the cannabis sector.
"Among the five largest cannabis formats in Canada, flower accounts for 37% of sales, pre-rolls 33%, vape 15%, and edibles and concentrates each 5%," writes Pablo Zuanic, a senior analyst. "In the third quarter of 2023, vaping notably recorded the third-highest year-over-year growth, reaching 21%, which is behind pre-rolls at 25% and concentrates leading with 43%."
"Flower sales increased by 5% and edibles by 6% year-over-year. However, the market share for vapes has remained relatively consistent, moving from 14% in the first quarter of 2021 to 15% in the third quarter of 2022, still well below the vape penetration in states like California and Colorado, which stands at 26%.”
Regional Differences: Store Density And Pricing
Alberta leads in-store density with 163 stores per million people, significantly higher than the national average of 96. Quebec, conversely, has just 11 stores per million.
Flower prices vary across provinces, with Quebec showing the highest average price, significantly skewing the national average.
Product Preferences
In terms of product mix, Alberta and British ...