Below is a brief excerpt from a complimentary research note written by our Cannabis analyst Howard Penney. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more.
Canada sales grew by over 120% from 2019 to 2020. In 2019 sales were $1.19 Billion, and in 2020, they grew to $2.62 Billion.
Using linear regression, we estimate annual sales will be C$4.02 Billion for 2021, a 53% increase over 2020. The largest reasons for the continued growth are increased brick and mortar access in Ontario, BC, and Quebec, and expansion in e-commerce presence.
Another significant reason for the increase in growth was the market trending towards value-based products in cannabis.
The licensed market can now compete better with illicit markets, causing an increase in overall revenue in the legal cannabis market as more consumers shift to buying from licensed retailers rather than illicit dealers.
Profitability remains elusive, as inventory remains a significant problem in the Canadian market. Our C$4.02 sales estimate needs to be low to work thru the current inventory issues.
We see profitability remaining elusive in the Canadian market well into 2022.