Canadian adult-use sales of cannabis jumped 118% to $2.6 billion in 2020, from $1.2 billion in 2019, according to Brightfield Group’s report. By the end of the year, the adult-use sales are projected to rise by another 60%.
Opening of retails and price declines were responsible for the rise in adult-use of cannabis in 2020.
New partnerships and M&A also fueled growth.
Value brands continued a robust performance, helped by competitive prices that drove demand.
THC drinks distribution increased towards the end of 2020 amid underwhelming sales during the year.
Brightfield Group expects more partnerships and consolidation in the Canadian cannabis market as companies come together to increase their competitive power.
Cannabis brands are expected to seek more product appeal to diverse consumers, balancing regulatory compliance and innovation.
Major cannabis stocks are currently declining. WEED is down 2.21%, TLRY is down 0.24% on premarket, ACB is down 2.06%, APHA is down 1.56%
