By EDITORIAL Apr 26, 2022 • 7:34 AM EDT
Although April 20th has been considered to be a holiday for cannabis consumers for more than 50 years, the landscape of the industry has drastically changed since 2014. Cannabis Sales Numbers Have Been Marching Forward Now For the Better Part of a Decade
Based on data from large scale cannabis operators in North America and from cannabis data analytics companies, we believe the amount of cannabis sales on April 20th has recorded exponential growth when compared to 2014.
We are of the opinion that the primary driver behind rising cannabis sales on April 20th is related to the increase in the number of states that allow for the sale of medical and/or recreational cannabis in the United States (US). We consider the legalization of recreational cannabis in Canada to be a secondary growth driver for April 20th cannabis sales and will monitor how this market continues to support growth in future years. Cannabis Sales Numbers Have Been Marching Forward Now For the Better Part of a Decade
After analyzing some of the data released by companies and states, we have a bullish view on the direction the cannabis industry is heading. Some of the most intriguing data points from last week’s holiday include:
- According to New Mexico’s Cannabis Control Division of the Regulation and Licensing Department (NMRLD), cannabis retailers sold $2.2 million in cannabis products statewide which is twice as high as previous years.
- High Tide Inc. (Nasdaq: HITI) (TSX Venture: HITI.V) is a leading Canadian cannabis retailer and it reported approximately CAD$1,372,600 of total retail gross revenue on April 20th,. Since the company had much fewer stores in 2021, we cannot compare the performance on a year over year basis. The amount of revenue was more than 75% higher from the previous Wednesday and we find this to be significant.
- According to cannabis data company Flowhub, this year’s holiday generated the most amount of cannabis sales in one day than it has seen in the past four years. The data is based on information the firm previously recorded and we believe our readers should be aware of this metric.
- According to cannabis data and analytics company Headset, the top-performing product in North America (Canada and the US) on April 20th were cannabis-infused beverages. The data analytics firm reported an 176% increase in the US and 110% increase in Canada. We have always been bullish on the cannabis derivative market and expect this vertical to continue to record strong growth.
- The COVID pandemic had a major impact on how consumers purchase products and the e-commerce industry benefited from it. According to data company Jane Technologies, cannabis retailers reported a 34% increase in edible sales and a 43% increase in vape sales from 2021 to 2022.
Although the cannabis industry has been under considerable pressure, sales have been rapidly increasing and we are bullish on this trend. According to Headset, sales growth in North America was primarily driven by an increase in total transaction volume. In the US, the median cannabis store saw a 107% increase in transaction volume when compared to the previous four weeks. In Canada, transaction volume increased by 57% on average and we find this to be significant.