More Canadians Buying Legal
From July to the end of September, Canadians spent $1.72 billion on recreational cannabis and more than half of it was purchased from legal sources.
Statistics Canada recently released data shows that household expenditure on non-medical cannabis products increased 30.8% between the second and third quarter of 2020, from $630 million to $824 million, while spending on unlicensed cannabis dropped 5.86% from $801 million to $754 million.
In combination with medical cannabis, which is purchased directly from licensed producers, 56.2% of the money spent on cannabis was spent in the legal market, and in the recreational market, spending in licensed storefronts finally overtook unlicensed sources. Last quarter, only 44% of Canadians’ spending on non-medical cannabis went to legal sources, but now it accounts for just over half, at 52%. Spending on medical cannabis did dip slightly, however, Health Canada has admitted to experiencing a backlog of paperwork due to COVID-19.
This shift of the scales is likely due to the rapid influx of new stores across the country, as well as innovative new products that customers can’t get in the illicit market. In Q3 of 2020, cannabis purchases (licensed or otherwise) accounted for 0.55% of all household spending, or $1.72 billion out of a total of $314 billion. We are seeing the cannabis industry take its place in Canada’s economy, with spending continuing to increase each quarter.