Canadian cannabis sales reached unprecedented heights in May, continuing a trend of steady growth in the nation’s regulated market.
According to the latest seasonally adjusted data from Statistics Canada, released on Jul. 24, the country pulled a record C$482.3 million from weed merchandise during the month.
Ontario, the province with the largest population by far, led the pack for purchases in May. Alberta was the second largest consumer and British Columbia took third place.
By the end of May, weed sales in Canada reached C$2.2 billion, marking a 5.4 per cent year-over-year rise from the five month period in 2024.
Canada’s marijuana sector has grown into a multi-billion-dollar industry since 2018 but it faces many challenges. High excise taxes, a substantial oversupply flooding the market and a thriving illicit industry are persistent concerns.
Organigram Global Inc (TSE: OGI) (NASDAQ: OGI) (FRA: 0OG) just complained about the excessively high taxes on Canadian pot products in an interview with CTV.
Other key market Canadian market players, including High Tide Inc. (CVE: HITI) (NASDAQ: HITI) (FRA: 2LYA), SNDL Inc (NASDAQ: SNDL) (FRA: VY4) and Tilray Brands Inc (TSE: TLRY) (NASDAQ: TLRY) (FRA: 2HQ), would evidently prefer that the government lowered the levies as well.
The Cannabis Council of Canada, the country’s largest lobby group, has been continually complaining about this tariff, highlighting that it is the industry’s number one problem.
“This excessive taxation [up to 34 per cent] puts businesses in the industry at risk, limits their ability to reinvest in innovation, and drives consumers toward cheaper, unregulated products,” the organization highlighted on its website.
Illegal pot exports leaving the country are also an ongoing issue. Authorities at the Calgary International Airport just announced that they seized 160 kilograms of cannabis concealed within suitcases and other items within the past year. The vast majority was destined to make its way to other countries, they determined.
Read more: Alberta now permits cannabis sales at events where minors are present
Read more: Cronos Group enters the Swiss medical cannabis sector
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