What is the current state of 2020 Canadian cannabis research and statistics?
The cannabis industry has faced so many unexpected challenges in 2020. From enabling contact-free cannabis sales and facing the health and safety challenges of COVID-19 to falling hemp prices and long wait times for cultivation license approval. With cannabis stocks and businesses fluctuating as Canadian cannabis growers work internationally with countries like Colombia and Germany, starting to do more cannabis research, you may be wondering where the industry is really standing as a whole. Here is a glance at Canadian cannabis research and statistics for 2020.
Originally, it was estimated that the industry would reach CAN$3.4 billion, so sales are not doing as well as expected. However, they are still up significantly from last year’s CAN$1.2 billion.
Canadian Cannabis Statistics At A Glance
- Between October 2018 and September 2019, CAN$907,833,000 was spent on recreational cannabis
- Canada was the second country after Uraguay to federally legalize recreational cannabis
- Second-quarter stock earnings in July and August 2020 show US cannabis stocks increased an average of 15% since reporting while the Canadian cannabis stocks have dropped an average of 8%
- 329,038 Canadian medical cannabis registrations were active as of March 2020 and are plateauing
- Cannabis vapes are currently the most popular new cannabis product compared to cannabis edibles, beverages, concentrated extracts, and topicals
Annual Canadian Cannabis Sales Revenue
Marijuana Business Daily reports that recreational sales of cannabis in Canada are projected to reach CAN$2.5 billion ($1.8 billion USD) in 2020. Originally, it was estimated that the industry would reach CAN$3.4 billion, so sales are not doing as well as expected. However, they are still up significantly from last year’s CAN$1.2 billion.
Biggest Canadian Cannabis Producer
According to the Marijuana Business Daily report on Canadian cannabis sales, Ontario is expected to be the largest cannabis-producing province by 2021. As of April 2020, their cannabis sales are near CAN$800 million and are expected to reach as much as double that in 2021. Ontario is very actively issuing new store authorizations which are expected to help fuel that immense growth.
Health Canada Cannabis Market Data
Health Canada is a great source for cannabis research and cannabis market data because they frequently update and share sales, licensing, and cultivation metrics on their website. Here are some highlights of the 2020 Canadian cannabis market.
For the reporting period ending in May 2020, Health Canada reported the following:
- A total of 7,840,577 packaged units of medical and non-medical cannabis were sold across Canada
- Dried cannabis sales represent 73% of total sales (5,712,547 packaged units sold)
- Cannabis extracts sales represent 14% of total sales (1,114,838 packaged units sold)
- Edible cannabis sales represent 13% of total sales (1,002,402 packaged units sold)
- 43,309,909 packaged units of cannabis products are being held in inventory by cultivators, processors, distributors, and retailers- 4.8 times the total sales
- Unpackaged plants held by federal license holders stood at 6,518,054
Licensed indoor and outdoor cultivation areas were 2,217,216 m2 and 334 hectares
Canadian Hemp Licensing Statistics
Health Canada hemp licensing data from January 1, 2018, to February 4, 2019, indicates that Alberta, Manitoba, and Saskatchewan have the highest total number of licensed and registrations for hemp cultivation. However, looking at the percentage of available licenses vs the number of licenses issued, New Brunswick (80%), Prince Edward Island (76%), Quebec (71%), and Ontario (68%) were the most popular locations for hemp cultivation. Overall, there are 711 licensed hemp cultivators in Canada, only 58% of the potential licenses that could be issued.
Canadian Cannabis Research 2020
Canadian cannabis research appears to have slowed with only one research grant published for 2020. Canadian cannabis research appears to be focused on cannabis safety, cannabis policy, and how cannabis works with the body.
- Team Grant: Partnerships for Cannabis Policy Evaluation (2019)
- Team Grant: Cannabis Research in Priority Areas (2019)
- Catalyst Grant: Cannabis and Mental Health (2020)
Final Thoughts on The 2020 Canadian Cannabis Market
Canada’s cannabis market growth has slowed but remained steady in 2020. As Health Canada grants more cannabis licenses, the market will continue to grow. Canada has a great cannabis economy and is taking huge steps to work with other nations as well. Considering the unexpected obstacles of 2020, Canada’s cannabis market has held up considerably well. This just goes to show that cannabis is an enduring market.
While the Canadian “green rush” may be in the past, the market is becoming more stable and expanding internationally. One thing is for certain, world-wide, Canada has one of the most robust and organized federal marijuana programs that has laid the groundwork for a successful industry. While US states struggle to cobble together programs and are continually fighting their federal government, Canada is encouraging growth and expansion. While US cannabis stocks may be currently gaining over Canadian cannabis stocks, the future of US cannabis is uncertain and could crumble under federal anti-cannabis rules at any time.
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