Are Cannabis Sales Falling? – Cannabis News, Lifestyle

Are cannabis sales falling across North America? There is a prevailing theory that the government’s COVID lockdowns have led to increased cannabis use. Some expect lower sales now that life is more or less normalizing. People are going back to work, back outside, meeting their friends. However, the causal relationship is not so obvious. Why shouldn’t people enjoy cannabis both outdoors and indoors? With friends and alone? Another theory is that inflation is the cause. As more money in the economy causes prices to rise, consumers are cutting back on their purchases of non-essential items. And for many, that includes cannabis.

Sales are falling across North America

Peak cannabis sales in 2021

Across the board, in both the legal American states and the Canadian market, cannabis sales peaked in May 2021 and then began a steady decline in August. And it’s been constant ever since. With one exception in December, when Christmas sales soared.

Cannabis data analysis company BDSA found that 2022 got off to a slow start. California reported January sales that were 12% lower than a year earlier. However, BDSA doesn’t think the trend will continue.

“Although most legal cannabis markets saw sales decline in the second half of 2021, the global cannabis market is expected to experience lively growth in 2022, driven by strong sales in new and emerging markets in the US, steady growth in Canada and the… international markets is led by Mexico and Germany,” said Jessica Lukas, BDSA’s chief commercial officer, in a statement.

Lower revenue across the board

Canadian licensed producer Tilray also suffered from lower sales. Tilray’s revenue fell 16.6% from September through November 2021. Gross sales declined 28.8% to $49.5 million and medicinal cannabis sales declined 5.3% to $7.9 million. Cannabis sales accounted for just 37.9% of the company’s top line. Down sequentially, when cannabis accounted for more than 40% of sales.

If we look at the percentage change in total sales compared to the same month last year, we see downward trends. Alberta is down 2%, Colorado is down 8%, Maryland is down 4%, Nevada is down 14%, Oregon is down 10%, Washington is down 7%. But then outliers like Ontario are reportedly up 60%. But that might be offset by the number of retailers in Ontario. Once the market stabilizes, trade saturation is likely to reverse, reducing revenue.

The percentage of stores with negative sales growth is increasing

Is inflation to blame?

Cannabis sales could suffer from the fallout from central bank inflation. Consumers are buying less because their money’s purchasing power isn’t what it used to be. Cannabis prices, too, may find equilibrium after a bizarre start. For many consumers, their first foray into the legal cannabis market came during the pandemic. They were under house arrest and receiving checks from the government. So it’s plausible that new cannabis markets that coincided with the pandemic were generating above-average sales.

Long term cannabis sales

The next month is unlikely to offer any insights into long-term cannabis sales. Like the December holidays, expect April sales to be distorted by the April 20 celebrations. Cannabis sales spike every year on and around April 20th. Customers enjoy discounts and certain categories of goods are gaining popularity, such as B. Edibles. This year’s decline in cannabis sales will temporarily reverse next month.