Oh, canna-bis! Canadian cannabis sales doubled, reaching $ 2.6 billion in 2020
The legalization of cannabis is gaining massive momentum in various countries around the world. As a result, the cannabis industry is growing at different speeds around the world, with certain countries experiencing a major boom at times. Canada is one of the countries where the cannabis industry has grown significantly in recent years. Cannabis sales in Canada were $ 2.6 billion in 2020. Cannabis sales in Canada represent three-digit growth in the Canadian legal cannabis market. This is an achievement that is not surprising. This is one of the biggest booms the world of cannabis has seen recently and we will analyze it in this article. What drove the growth in cannabis sales in Canada? Is the growth sustainable? What does the future hold for cannabis in Canada? These and much more are discussed in detail. Continue reading!
What drove the growth in cannabis sales in Canada
Determining the exact factor responsible for propelling the cannabis market astronomically up is a complicated task. So many factors, so many variables come into play when it comes to growing an industrial sector, especially one that is booming like Canada’s cannabis industry. Despite the difficulty of the task, experts have conducted several detailed surveys and studies to determine the catalysts responsible for growth, and several reports have been published.
A report published by the Brightfield Group details the growth in cannabis sales in the country, as well as the catalysts behind that growth. These growth factors include:
Growth and expansion in e-commerce and click-and-collect offers.
Increasing access to brick and mortar retail in areas such as Quebec, Ontario and British Columbia.
Rapid adaptation to the pandemic by retailers, development of means to deliver despite lockdowns and closings.
Legal prices became quite competitive even with the black market.
The rise in tokens in the Canadian cannabis market
Sales volume wasn’t the only one to see a significant surge in the Canadian cannabis market in 2020. The tokens also rose. Given the industry’s wide diversification over the year, the increase in tokens can be attributed to a number of factors, including competitive prices and the influx of new consumers. Legalizing cannabis means the legal market can now compete with the illegal market, making it easier for new value brands to enter the market.
These value brands don’t have to worry about getting overpriced as most consumers are increasingly switching from the illegal market to the legal cannabis market. This move meant regular stoners were buying more of these tokens. The legality of cannabis and ease of use with value brands have also led new cannabis enthusiasts to try marijuana. These provide value brands in Canada with all of the valuable traffic they need.
Commenting on the growth of the industry in Canada, Jamie Schau, International Research Manager for Brightfield Group, said: “The Canadian market is seeing impressive growth. Adult cannabis will grow 118% in 2020 and an additional 60% this year. This growth has a new one Heralded the era of adult cannabis use that brought with it not only an evolving line of 1.0 and 2.0 product offerings, but also increasingly sophisticated and strategic competitors across the supply chain and diverse and discerning consumers. “
What to expect in the years to come
The future is always a mystery, no matter how stable things may seem, no one really knows what the future holds. However, with obvious growth and specific tools, it is possible to make predictions and projections for the future.
Along with the growth of the market, a lot of structure came into the Canadian cannabis market. Most of the licensed manufacturers focused on improving customer experience, branding, and most importantly, product quality. This had led cannabis enthusiasts to identify with certain brands and build customer loyalty in the market.
Another trend in the market is the increasing diversity of consumers. This means brands need to appeal to a more diverse pool of consumers. The quality of marketing and product offering is improving, and innovation is reaching an all-time high. Partnerships between brands will also grow to meet the needs of their diverse consumer pool. All of this will make Canada one of the largest cannabis industries in a few years. The Brightfield Group report has the numbers to back it up.
Retail openings and price cuts were notable catalysts for 2020 growth, particularly in Ontario and British Columbia. Partnerships and mergers and acquisitions are on the rise – especially partnerships between Canadian LPs and US brands.
Brightfield Group’s international research manager Jamie Schau said, “We look forward to watching the market continue to mature as retail openings and price competitiveness make cannabis more accessible to Canadian consumers and compelling brands and products continue to grow.”
The growth in the Canadian cannabis industry came as no surprise to industry experts. It should be noted that Colorado and Louisiana also boomed immediately after legalization. We’re almost halfway through the year and so far 2021 has been very optimistic for the cannabis industry worldwide and in Canada. Will cannabis sales in Canada double again by the end of 2021? Economic forecasts point in this direction, but we’ll wait and see. Regardless of what happens, these are exciting times for any cannabis enthusiast.
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