Canadian retail cannabis sales dropped by 6.4% in February 2024 to $376.18 million according to new Statistics Canada data. January sales were revised higher to $402.0 million.
Despite this monthly drop, sales increased by 1.71% from February 2023, likely boosted by the extra day for the leap year. This is also the highest February figure on record since Canada legalized cannabis in 2018.
Nova Scotia was the only province to see an increase in month-over-month sales from January 2024. On an annual basis, Nova Scotia, Newfoundland, and the Yukon saw the largest increase in sales from February 2023, while BC, Ontario, and Saskatchewan saw drops.
Prairies
Cannabis sales in the Prairies dropped across the board in February with Saskatchewan seeing the biggest decrease. Sales in Saskatchewan were down 15.30% from January to $13.48 million, while sales have only dropped 0.44% since February last year.
Alberta sales dropped by 2.32% from January to $72.07 million, the lowest figure the province has seen since March 2023. Month-over-month sales in Calgary and Edmonton were down 1.88% and 3.42%, respectively, in February. Alberta sales have increased 10.81% since February 2023.
Manitoba sales dropped by 3.62% from January to $16.82 million, while sales in Winnipeg were down 3.36% to $10.24 million. Sales in the province have increased 17.22% year-over-year.
In April, the Manitoba government announced it will be placing a temporary moratorium on any new licenses in urban areas for controlled access stores that sell cannabis, including convenience stores and gas stations. The province already has 11 such outlets in urban areas and government wants to review before adding more stores.
Ontario
Cannabis sales in Ontario hit a low of $145.74 million in February, down 7.06% from the prior month. Sales have not been this low since March 2022. The province also saw a drop in year-over-year sales, down 3.59% from February 2023.
Toronto and Ottawa both saw month-over-month drops in sales of 7.06% each in February. Both cities’ sales have dropped 3.59% since February 2023.
Ontario is planning to add $31 million to its budget to address illegal cannabis stores and websites operating in the province. As part of Ontario’s Budget 2024, the province plans to provide the funds over three years to the Provincial Joint Forces Cannabis Enforcement Team.
Quebec
February sales in Quebec were down 9.48% from January to $49.03 million. Similar decreases were seen in the cities of Quebec, Montreal, and Gatineau. Provincial sales have increased 8.47% since February 2023.
British Columbia
February sales in BC were down 11.31% from January to $48.33 million, while sales in Vancouver dropped 6.33% to $18.35 million. Similar to Ontario, provincial sales have not been this low since February 2022. BC also saw a decline in year-over-year sales, down 15.01% from February last year.
Surrey, which is predicted to become the largest city in BC by 2029, recently voted to allow 12 cannabis stores, two in each of the city’s town centres. Surrey should see more stores open in the future.
Maritimes
As previously mentioned, Nova Scotia was the only province to see an increase in February sales, up 21.45% from January to $12.65 million. Sales in the province have also increased a sizable 49.12% from February last year.
February sales in Newfoundland were down 5.16% to $7.08 million but have increased 26.32% year-over-year.
Sales in PEI dropped 8.23% in February to $1.91 million, while sales have increased 12.24% since February last year. Sales in New Brunswick dropped 5.13% in February to $7.03 million but have increased 14.93% year-over-year.
Ontario is not the only province to be doing more to crack down on illicit sales. New Brunswick is changing its provincial rules to target illegal cannabis stores more aggressively. The provincial government introduced amendments to its Cannabis Control Act with the goal of increasing compliance with provincial rules, reducing the sale of illicit cannabis, and preventing young people from consuming cannabis.
Provincial Sales (x1,000)
Canada $376,182 (-6.41%)
Newfoundland & Labrador $7,080 (-5.16%)
Prince Edward Island $1,908 (-8.23%)
Nova Scotia $12,645 (21.45%)
New Brunswick $7,030 (-5.13%)
Quebec $49,027 (-9.48%)
Montreal $26,380 (-9.48%)
Quebec City $4,559 (-9.49%)
Gatineau $1,392 (-9.49%)
Ontario $145,736 (-7.06%)
Toronto $46,643 (-7.06%)
Ottawa $14,572 (-7.06%)
Manitoba $16,817 (-3.62%)
Winnipeg $10,244 (-3.36%)
Saskatchewan $13,476 (-15.30%)
Alberta $72,070 (-2.32%)
Calgary $19,875 (-1.88%)
Edmonton $24,158 (-3.42%)
British Columbia $48,332 (-11.31%)
Vancouver $18,352 (-6.33%)
Yukon $968 (-0.51%)
Source: Statistics Canada
Photo courtesy of SevenPoint Interiors