Canadian cannabis retail sales increased for the fifth consecutive month in July, surpassing C$440 million and reaching the highest level so far in 2024.
Total retail cannabis sales increased 1.6 per cent compared to June, according to the latest data from Statistics Canada.
Despite the slight increase, July's figures still represented a 3.9% decrease compared to the same period last year.
This continues the trend of slowing market growth, with annual sales down 0.8% so far in 2024. Provinces such as Alberta and Quebec saw year-over-year growth of 5% and 19%, respectively, while Ontario and British Columbia both reported larger declines of 14% and 12% year-over-year.
Despite consumers moving away from the illegal market due to an increase in the number of stores and more competitive prices, market growth is being limited by factors such as falling prices, which continue to affect revenues.
For example, Ontario's cannabis sales increased 3.8% month-over-month but were down significantly year-over-year, while British Columbia reported a 2.7% drop in sales from June to July and a 12% drop for the year.
Despite these figures, industry estimates are predicting a stronger performance, with Hifyre IQ predicting July sales will reach C$476 million. August forecasts indicate an increase of 2.8%, meaning sales could increase 4.4% year-over-year.
While the legal market continues to expand, growth is being limited by pricing pressures and competition from the illegal market, both online and in brick-and-mortar stores.
The number of new cannabis dispensaries has slowed, and a recent surge in private cannabis production licenses may indicate that more consumers are seeking alternatives to purchasing cannabis at retail stores.
