420 with CNW – Canadians Consume 100 Tons of Recreational Weed in First Year of Retail Sales

December 26, 2019 16:20:22

Data from Health Canada shows that Canadians purchased about 100 tonnes of legal adult-use marijuana within the first year of legalization and that the level of available stock continues to increase.

According to the monthly Marijuana Tracking System from Health Canada, the dried flower marijuana sold in Canada within its first year of legalization amounted to 88,676 kilograms. The overall sale of dried buds has tripled since October 2018.

Data from Health Canada further showed that at the end of September, the finished and unfinished dried marijuana inventory held by farmers, processors, distributors, and retailers amounted to 380,666 kilograms, which is about 32.5 times the quantity of total stock sold within the month of September. At the end of September, the data showed that there were about 64,151 kilograms of finished dried marijuana products in inventory, which has been going up by 5 percent every month. This suggests that a significant amount of legal pot inventory is yet to reach the retailers as the wholesalers hold it.

Within the same year, the recreational market sold a total of 46,056 liters of marijuana oil, which is an equivalent of 9,211 kilograms of dried bud. This brings up the total quantity of dried buds to about 97,887 kilograms sold to the legal recreational market.

The amount sold in the legal recreational markets is less than the quantity projected by Canadian analysts, and it is a sign that the black market demand still outpaces legal marijuana sales. In the Middle of 2018, John Zamparo, an analyst with CIBC World Markets, said that the recreational market in Canada would sell approximately 400,000kgs of legal weed annually while the Bank of Nova Scotia predicted that the total amount of marijuana to be sold this year in Canada would be 900,000kgs. These figures show that lega sales are still way below the potential of the legal recreational marijuana industry, and a possible indicator that the rest of the projected demand is being met by illicit sellers.

The data from Health Canada also showed that by the end of September, there was a total of 1,781,106 square meters of active marijuana cultivation area in Canada. This is an increase from the previous year’s 452,896 square meters of cannabis cultivation area. By the end of the first year of marijuana legalization in Canada, the farmers had planted about five million marijuana plants, and compared to last October, it is a four-fold increase.

On Tuesday last week, Statistics Canada showed that in the third quarter of the year, Canadian households spent a total of $1.27 billion on weed, with $860 million of the total sales were from the black market. The estimated sales from the legal marijuana market total were $417 million.

Experts wonder what recommendations weed companies like The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) and SinglePoint Inc. (OTCQB: SING) have for wiping out the marijuana black market that is exposing consumers to the risks associated with untested products.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

CNW420 is part of the InvestorBrandNetwork.