BDSA estimates that total legal cannabis spending in Canada reached more than $2.6 billion in 2020, based on BDSA’s Canadian retail sales tracking and available government data through February. That is slightly higher than BDSA’s previous forecast of $2.5 billion—which was intentionally conservative in anticipation of impact from the COVID-19 pandemic. As in the United States, however, Canada’s legal cannabis industry saw only limited, short-term negative effect from the pandemic in 2020.
A high-level understanding of cannabis markets is key for any business looking to succeed in the industry. But as legal markets mature, those in the highly competitive cannabis retail space need a more detailed view of consumer behavior and purchasing trends to stay ahead of the curve. BDSA offers a variety of tools to help retailers and brands make informed business decisions.
Retail Sales Tracking provides a granular view of sales trends, category mix and brand/product performance in 10 U.S. cannabis markets. Consumer Insights gives a detailed look at consumer demographics, preferences and behaviors. Now, BDSA’s new Basket Analytics product gives a comprehensive view of per-transaction purchasing dynamics.
BDSA’s Chief Executive Officer, Micah Tapman and Vice President of Insights and Analytics, Kelly Nielsen recently joined Canaccord Genuity’s Bobby Burleson for a lively discussion surrounding BDSA’s latest market forecast. Here are the highlights!
With the launch of sales on January 22, 2021, Arizona became the 10th state with adult-use cannabis retail. The state is already home to one of the most developed medical cannabis markets in the country, as BDSA’s retail sales tracking shows that Arizona brought in over $1 billion in medical sales for 2020. While Arizona’s market will likely deal with issues that are common in new adult-use markets, such as undersupply and limited retail coverage, BDSA expects Arizona to see strong adult-use sales in 2021.
With the results of the 2020 election finalized, one of the clear winners was the cannabis industry, with every legalization proposal on the ballot passing. Voters in 2020 showed that cannabis legalization has grown in popularity to the point that it is no longer a partisan issue, but the progress seen in legalization at the state level has been accompanied largely by inaction at the federal level. The election of Joe Biden to the presidency and the recent progress of cannabis legislation in the House of Representatives give hope that the gridlock on nationwide cannabis reform may be coming to an end in 2021.
The Year Ahead – The Cannabis Industry in 2021.
Acceptance of legal cannabis is rising across the United States and the 2020 election season was an eventful one for the cannabis legalization movement.
With launch of Retail Sales Tracking, BDSA Provides Comprehensive Suite of Market and Consumer Insights on the Canadian Cannabis Market
BDSA has launched retail sales tracking data for Canada, providing brands and retailers with greater insight into the world’s largest nationally legal cannabis market.
BDSA forecasts Canada’s cannabis industry will reach CAD$3.3 billion ($2.5 billion) in spending in 2020 and grow to CAD$8.1 billion in 2025, rising at a compound annual growth rate of 20%. Canada’s market is divided into the medical and adult-use channels, with the latter commencing sales in October 2018. Consumer spending in the adult-use channel has grown rapidly since launch and is expected to account for nearly 84% of Canada’s total legal cannabis market in 2020.
43% of alcohol consumers also consume cannabis
An interesting interaction is evolving between beverage alcohol and cannabinoid products that is becoming an increasingly important issue for both alcohol and cannabis brands and retailers to watch as worldwide cannabis consumption grows. Growing acceptance and consumption of cannabis, consumption of both alcohol and cannabis and cannabis product innovation are three factors influencing beverage alcohol consumption.