Several trends in cannabinoid (CBD) oil have reshaped the marijuana market across the North American country, leading to speculation on the potential to grow and cultivate sales in the nation.
CBD Stats Post-Legalisation in Canada
In recent years, figures on CBD producers revealed downward trends among several producers, with Ahria plummeting from 22.19 CAD in 2018 to 3.93 in early 2020, or a loss of 83 percent.
Aurora, one of the largest CBD providers, nosedived from 164.52 CAD in 2018 to 4.93 CAD in March 2020, or 97 percent.
But major gains in the Canada’s cannabidiol (CBD) oil industry have taken place in recent months and analysts predict further growth in the industry expected over the next five years.
The government legalised CBD edibles in Canada under the Cannabis Act in December 2018, which sold 81,000 units the same period and 1.5m unit sales in November the following year.
In 2020, edibles made up 27 percent of cannabis sales compared to 20 percent in 2019, according to government statistics.
Young adults consume the most cannabis, with people aged 65 and over increasingly purchasing CBD oil, Matei Olaru, chief executive of cannabis review site Lift & Co said as reported by CTV News.
CBD Oil Supply Glut
Canada’s cannabis inventories surpassed 1m kilograms from October last year, sparking a major downturn in CBD oil prices and causing brands such as Sunniva, Green Growth Brands and Muskoka Grown to fall into administration.
Despite the low prices, CBD oil demand in Canada grew rapidly to make up for the lost revenues, with Canadians spending 1.499m CAD on medical and recreational cannabis products in Q3 2019. But sales jumped to 1.72m CAD, or 13 percent year-on-year last year.
Forecasts from Statistica revealed improving trends by summer 2020, with market research for CBD gummies set to reach 3.09bn CAD by 2025.
CBD and COVID-19
National lockdowns and restrictive measures have been imposed in Canada due to the ongoing COVID-19 pandemic, forcing non-essential businesses and facilities to close temporarily as authorities tackle the spread of the disease.
Consumers were forced to stay at home amid the lockdowns, triggering a stockpile of CBD oil and other cannabis goods in a similar manner as other fast-moving consumer goods such as toilet paper, deodorants and other household items.
Buyers spent 74 percent more in the second quarter last year compared to 2019, with research suggesting CBD reduced anxiety amid the pandemic, boosting its popularity.
Consumer stockpiling due to the lockdowns led to shortages of supplies in Canadian markets. Roughly 35 percent of people responding to a Goldenseed survey said the COVID-19 restrictions were their top reason for panic buying.
A further 37 percent in the survey said they planned to use CBD to tackle restlessness and boredom.
CBD Prices Fall in the Canadian Market
The glut in CBD oil has also seen outdoor cultivation rile in recent months, with bumper crops in 2020 boosting unpackaged cannabis volumes to over 1mn kilogrammes for the first time in history, Marijuana Business Daily reported at the time.
But inventories of THC and CBD edibles have skyrocketed in eight months from 1mn units in January 2020 to over 9.5m units in August last year, Government figures show.
Figures from Statistics Canada found the Implicit Price Index (IPI) for CBD and recreational cannabis stood at 80.2 in Q3 last year, down from 85.0 in Q4 2018. IPI for Medical CBD in the third quarter last year fell from 80.5 in Q4 2018 to 72.6 in Q3 last year.
Research firm Headset found that CBD prices also varied across provincial markets, with British Columbia’s average vape CBD prices dropping from 114.57 CAD in January last year to 95.84 CAD in August the same period. Prices in Alberta sank from 138.64 CAD in February last year to 80.88 CAD in October the same year.
Improved Access to CBD Oil
Canadian provincial governments control policy on cannabis, causing an uneven rollout of storefronts across the country.
Stores in Western Canada saw a meteoric rise in locations in 2018, but Ontario only saw one store open for business.
Roughly four in ten Canadians live in the eastern province but a new Conservative government in 2018 scrapped plans to allow government-run cannabis stores in favour of private franchises.
Despite this, only 24 CBD and cannabis shops opened their doors for business in Ontario a year after legalisation.
The Ford government also scrapped unpopular lottery systems fuelling slow rollout policies and passed measures to expedite licence approvals.
According to the Toronto Star, Ontario had saw 359 storefronts in January this year and expects 1,300 by October the same year, or roughly 30 stores each week.
Customers choosing not to smoke dried flower or use cannabis oil with THC can use alternative products such as full spectrum CBD oil, one of Canada’s top CBD products, CDB Oil Guide revealed.
Retail CBD and cannabis sales skyrocketed over 169 percent year-on-year from January 2020 to 2021, Statistics Canada figures revealed.