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Increasing Weed Dispensary in Canada Made Billion in Sales of Recreational Cannabis

Recreational cannabis use is dominating the Canadian market and outpacing medicinal marijuana sales. The Canadian cannabis industry achieved a significant milestone by exceeding CAD 5 billion in sales.

Brad Poulos from Toronto Metropolitan University reports most weed dispensary sales growth comes from people leaving buying from street dealers, which accounts for about 40% of cannabis sales in Canada, especially in Toronto.

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Expansive Growth of the Canadian Cannabis Industry

In 2023, the Canadian cannabis industry saw remarkable growth, driven by increasing consumer usage and the proliferation of cannabis stores. Key demographic insights reveal that more than one-third of adults aged 18 to 24 years (38.4%) and 25 to 44 years (34.5%) reported using cannabis products in the previous 12 months, compared to 15.5% of adults aged 45 years and older.

Daily or almost daily cannabis usage was also significant among younger adults, with 8.7% of those aged 18 to 24 years and 10.3% of those aged 25 to 44 years reporting such frequent use, compared to 4.8% of adults aged 45 and older.

With over 3,000 new locations of cannabis stores operating in Canada, the majority of cannabis customers are now purchasing from the wide market. 

Canadian Recreational Cannabis Sales

According to government data, Canadian recreational cannabis sales reached CAD 5.07 billion ($3.8 billion) in 2023, a 12.2% increase from 2022.

Market Share by Product Category

Cannabis consumer preferences in Canada continued to shift, with significant growth in pre-rolled joint sales. According to Mitchell Laferla, a data analyst at Headset, pre-rolls captured 31.4% of total sales, a 19% increase from the previous year. This brought the pre-roll category nearly on par with flower, which had 35.2% of sales.

The “connoisseur/infused” segment, which includes joints fortified with cannabis concentrates, drove the growth in pre-roll sales. These sales are particularly in Alberta, British Columbia, Ontario, and Saskatchewan markets.

Cannabis prices continued to decline across most product categories in 2023, but the rate of price compression slowed compared to the previous year’s double-digit declines. Pre-roll prices remained stable, supported by strong demand in the category.

Other cannabis product categories, like edibles, beverages, topicals, and concentrates, also showed various levels of growth. 

Product CategoryPercentage of Total Sales
Flower35.2%
Pre Rolls31.4%
Concentrates4.0%
Edibles6.6%
Beverages2.1%
Topicals0.4%

Monthly Retail Sales Data

Adult-use cannabis sales in Canada reached CAD 441.2 million in December 2023, a 3.6% increase from December 2022 and an 8.2% increase from November 2023. Monthly sales had declined since peaking at CAD 467 million in August but picked up again in December.

Statistics Canada revised November’s sales total to CAD 407.9 million from the initially reported CAD 412.1 million. 

Regional Insights

Ontario

Ontario leads at a 19.3% rise to CAD 184.3 million in cannabis sales. The province has also made strides in increasing the number of cannabis stores, which makes it more convenient for consumers to purchase their desired weed products.

Alberta

Alberta followed Ontario with an 11.3% increase to CAD 82 million. Alberta has been one of the leading provinces in terms of cannabis sales and the number of cannabis stores. The province’s favourable regulatory environment and entrepreneurial spirit have led to a thriving cannabis market.

British Columbia and Quebec

British Columbia experienced a 12.6% decline to CAD 59 million, and Quebec saw a 5.2% drop to CAD 49.4 million. 

Despite the small decline in sales, British Columbia and Quebec’s cannabis store market is also growing steadily, with an increasing number of diverse product offerings. The provinces have focused on ensuring safe and controlled access to cannabis.

Factors Driving Growth

Expansion of Weed Dispensaries

The increasing number of weed dispensaries and cannabis stores across various provinces has made it easier for consumers to purchase cannabis products. A new location is continually opening, further enhancing accessibility.

Diverse Product Selection

Cannabis stores offer many new products, such as flower, pre-rolls, concentrates, edibles, beverages, and more. This variety caters to different consumer preferences and drives sales.

Each selection enables customers to find a product that suits their needs. As customers become more accustomed to the effects of cannabis, they can transition to different products. You can start from less potent flower and progress to highly potent concentrates. This range of product potency attracts new and existing customers, which sustains the growing sales.

Outdoor Production

In addition to the already substantial stockpile of cannabis, there’s a surge in outdoor cultivation. This uptick in outdoor farming aims to reduce production expenses for some growers and lower costs for cannabis derivatives, such as infused products. This focus on affordability aligns with current consumer preferences.

Special Offers and Promotions

Weed stores offer special deals and discounts to attract customers and encourage repeat purchases. These special offers and promotions can include bulk discounts, monthly sales, and sample sales. Retailers report a noticeable uptick in consumer preference for budget-friendly brands, often priced at around $3.75 (CA$5) per gram or lower.

Online Shopping and Delivery Services

The convenience of online weed shopping and home delivery has also played a major role in boosting sales. Many customers prefer the ease and privacy of purchasing cannabis online.

An online cannabis shop also provides access to people who cannot find a nearby dispensary and caters to disabled patients.

Product Selection

Some popular weed products share the most market sales: pre-rolls, flower, and concentrates.

FeatureGary PaytonAAA – PreRoll Pack – 5 X 1GBudder – White Widow – 2g
CategoryDried FlowerPre-RollConcentrate
Strain TypesHybrid (Balanced)IndicaSativa-dominant (60/40)
FlavoursCitrus, SweetSmooth and tastySugary, Fruity, Tropical
THC24%24%80-90%
DescriptionCollaboration between Cookies and Powerzzz Genetics, named after NBA Hall of Famer. Potent, flavourful, colourful strain with even-keeled effects.GRASS’s stylish pre-roll packs with 3-star flowers. Includes 5 joints, 5g totalWhite Widow Haze is a Sativa-dominant blend with moderate THC.Best for daytime use.
weed dispensary Canada

Booming Recreational Sales Through Cannabis Dispensaries

The increasing number of weed dispensaries in Canada has significantly contributed to the booming sales of recreational cannabis. With sales surpassing CAD 5 billion in 2023, the industry is set for continued growth, driven by market expansion, product innovation, and a supportive regulatory environment. 

The diverse product offerings, particularly the rise of pre-rolls and the sustained popularity of flowers, highlight the dynamic nature of consumer preferences.

If you want the best weed dispensary product selection, visit GrassLife’s website. We offer a huge variety of high-quality cannabis products to suit every preference. We also prioritize customer satisfaction and cannabis education. Our marijuana products are sourced from trusted suppliers and undergo rigorous testing to guarantee 100% safety and potency. 

Frequently Asked Questions

Which region has the largest cannabis stores in Canada?

Canada, with a large population of nearly 40 million, has over 3,600 recreational cannabis retail stores as of January 2024, slightly less than one store per 10,000 residents.

Provinces like Ontario and Alberta allow private-sector cannabis retail stores, while Nova Scotia and Quebec only allow government-owned stores. British Columbia has both private and government-operated stores.

Here are the number of cannabis stores by region:

  • Ontario: 1,742
  • Alberta: 749
  • British Columbia: 494
  • Manitoba: 198
  • Saskatchewan: 184
  • Quebec: 98
  • Newfoundland and Labrador: 53
  • Nova Scotia: 49
  • New Brunswick: 38
  • Northwest Territories: 6
  • Yukon: 6
  • Prince Edward Island: 5
  • Nunavut: 1

How do dispensaries attract and retain customers in a competitive market?

  • Competitive Pricing: Lower prices and special offers draw in cost-conscious customers. Consistent value and discounts for loyal customers keep them returning.
  • Loyalty Programs: Rewards programs entice new customers to start shopping. Ongoing benefits and exclusive deals encourage repeat business.
  • Diverse Product Selections: Offering various products that appeal to various customer preferences. Regularly updating inventory keeps customers engaged and returning.
  • Knowledgeable Staff: Expertise and personalized recommendations attract those seeking guidance. Trust and reliable advice from staff build long-term customer relationships.
  • Exceptional Customer Service: Friendly, efficient service and easy returns create a positive first impression. Consistently good service fosters loyalty.

What is the future outlook for the cannabis industry in Canada?

The future outlook for Canada’s cannabis industry is very positive. Brightfield projects that Canada’s cannabis market will grow at an annual rate of 10% for the next five years and reach $8.8 billion.

Sales will grow as more people choose to support more retail stores. The industry is also innovating with new products and methods which will attract a broader audience.

Cannabis is increasingly integrated into other sectors, such as health, cosmetics, and tourism, creating new opportunities. The popularity of cannabis-infused products and cannabis tourism highlights a bright future for the industry in Canada. For more information check out Best online dispensary Alberta.

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