Below is the part of a weekly series of benchmarks provided by the team at Cannabis Benchmarks®.
This week’s Canada Cannabis Spot Index examines a new report from the Ontario Cannabis Store (OCS), which details the development of the province’s legal cannabis market from April 1, 2019 through March 31, 2020.
The OCS report affirms many of the themes that Cannabis Benchmarks has detailed in prior analyses:
Canada’s illegal market remains robust, especially in Ontario, where the rollout of legal physical retail locations has been slow. OCS estimates that the legal market accounted for only about a fifth of all cannabis commerce in the province in Q4 2019.
The build out of a physical retail presence is key to growing the legal Canadian cannabis market. Even though Ontario had only about 50 licensed stores open at the end of the period under discussion, revenue generated at those retailers made up over 80% of all legal sales in the province, with the rest coming from the online store.
Overall, Ontario’s legal cannabis market has significant room for growth, which should be stimulated by additional stores opening and the continued rollout of Cannabis 2.0 products.