Time: 2024-06-30
Canadian cannabis sales surged 5.3% sequentially to C$428.6 million in April, marking a 4.4% increase from the previous year. The market saw a positive trend with several notable developments in the industry.
WH opened its fourth Pennsylvania dispensary and relocated one, while CBSTF announced its exit from the Florida market. CRON provided a substantial loan to GrowCo and GTBIF launched its 17th dispensary in Florida. Furthermore, PLNH introduced a Fight Club in Las Vegas, and TLRY expanded its product line to include Broken Coast in Australia.
The Global Cannabis Stock Index experienced a 7.1% decline in the week, contrasting the 0.6% gain in the S&P 500. In 2024, the S&P 500 showed a 14.6% increase, while the GCSI gained 6.2%. The market has had its ups and downs, with 2023 marking a 16.5% decrease for the GCSI after a 24.2% increase in the S&P 500.
Two new model portfolios, including Beat the Global Cannabis Stock Index and Beat the American Cannabis Operator Index, were introduced in 2022. The former saw a 6.4% rise to $100,526 in the week, outperforming the index. While the latter gained 0.3% to $68,322, underperforming the index.
Notably, retail cannabis sales in Canada rebounded in February and April, reaching $539 million in April 2024 compared to $518 million in January. Despite the year-over-year growth, the pace of sales increase has slowed down as the market approaches saturation.
From January 2019 to January 2020, sales nearly tripled from $54 million to $160 million, followed by further increases in subsequent years. However, the growth rate has been tapering off, signifying a potential plateau in sales volume as the market matures.
Moreover, wholesale sales, prices, and volumes of cannabis fluctuated, with a drop in April from the record high in March 2024. Additionally, the number of retail stores across Canada saw a decline, particularly in British Columbia and Alberta, while other provinces showed either an increase or remained stable in store count.
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