Canada Sells More Than C$4.5 billion of Cannabis in 2022

Although Canada’s cannabis sector has been trending lower, retail sales are trending higher and we find this to be significant.

Earlier this month, Statistics Canada reported a record C$425.9 million of cannabis retail sales in December. This represents a double-digit percentage increase on a month-over-month basis and sales numbers beat estimates from Hifyre IQ. The cannabis data analytics firm expected C$400.2 million of retail sales for December and we are bullish on the beat.

Another positive development is related to Statistics Canada revising retail cannabis sales for November. Retail sales for the month were revised from C$373.3 million to C$374.3 million and we consider this to be another bullish data point.

The Canadian cannabis sector ended the year on a high note and we expect 2023 to be an even better year (from a growth standpoint). In 2022, there were more than C$4.5 billion of retail cannabis sales. When compared to 2021, the amount of retail cannabis sales increased by almost 18% and we are excited about this trend.

The primary reasons for the higher amount of retail cannabis sales can be attributed to two key factors. First, there has been a significant increase in the number of stores on a year-over-year basis. Second, lower flower prices have attracted customers from the illicit market.

From a population standpoint, Ontario is the largest province in Canada and a key market for the success of the entire cannabis sector. When compared to December 2021, sales in Ontario increased by approx. 35%.

We believe the recent weakness in the cannabis sector has created a great opportunity for investors. Canadian cannabis stocks have been under more pressure than US cannabis stocks and we believe some of the moves lower are overdone.

If you are interested in learning about the companies that could benefit from this, please send an email to support@technical420.com with the subject “Canadian Cannabis Leaders” to be added to our distribution list.

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