Cannabis is prevalent in Canada, with about half of the population claiming to have used it. Canada made history in October 2018 when they became the second country to legalize the adult use and sale of cannabis. Many had projected cannabis sales percentages after legalization, but has it lived up to expectations in the year 2020?
Over the last couple of months, the cannabis industry has seen an increase in sales. The covid-19 pandemic has given individuals more urge to consume cannabis. With the current increase in sales, the lows at the beginning of the year have quickly been overturned.
The recent increase in sales comes after several months of low sales, and Canadian Licensed Producers (LPs) suffered many losses during this period. This trend of downfall in sales has left many people optimistic about entering the Canadian sector, but this is undoubtedly the right time to re-enter with the recent increase.
Several analyses were conducted on the Canadian cannabis sector, which shows how far the market has gone since legalization. This year has seen a period of strong growth for the Canadian cannabis industry, which was forecasted by industry analysts.
In June, reports from cannabis Canada showed that the nation had generated more than $200 million from cannabis sales. These figures were higher than the revenue generated in January, which signifies a rising curve.
Cannabis sales in Canada witnessed an increase in sales by 30% in June, which was impressive. However, the sales figures in July and August were even more impressive. Cannabis sales in July reached more than $230 million, and this figure soared to approx. $245 million in August.
With this constant increase in sales, the Canadian cannabis industry is set to generate more than $2.7 billion of revenue yearly, which is what was projected. When compared to 2019, the Canadian cannabis industry has witnessed a tremendous increase in sales. The main reason for the rise in sales was the legalization of recreational cannabis in October 2018 and the legalization of cannabis-infused items in December 2019.
It’s believed that cannabis sales in Canada have been on a trajectory and forecast more demand for cannabis derivative products over the next couple of years. Many licensed producers in Canada have come under pressure due to slow starts, but with the sales numbers rising, this trend is expected to change.
Another reason why Canada’s cannabis sales have been a trajectory is related to the international market. Over the past years, most major global markets have legalized cannabis, which creates optimism on the opportunity presented by the European Union (EU) and South American markets.
Bottom line- A trajectory or not?
Cannabis legalization of recreational cannabis has so far gone to plan, and there’s no doubt that it will only become more fruitful over the upcoming years. Given that it was the second nation to legalize cannabis, the increase in sales was highly anticipated. Still, as of now, we hope it maintains an upward pattern in the upcoming years.