Canadians are drinking less alcohol as consumption of cannabis rises, according to a new report released by Statistics Canada that tracked sales in the country from April 1, 2023, to March 31, 2024. While alcohol sales still dwarf cannabis sales, the trends are telling alcohol consumption is declining and cannabis is growing.
Statistics showed that during the tracked time federal and provincial governments earned C$15.7 billion (+1.1%) from the control and sale of alcohol (C$13.5 billion, -0.5%) and recreational cannabis (C$2.2 billion, +12.6%) in the fiscal year ending March 31, 2024.
Biggest booze decline
According to the report, “On a volume basis, sales of alcohol declined by 3.8% to 2,988 million liters in 2023/2024. This was the largest volume decline ever recorded since Statistics Canada began tracking alcohol sales in 1949. On average, Canadians of legal drinking age purchased the equivalent of 8.7 standard alcoholic beverages per week in 2023/2024, down from 9.2 the previous fiscal year.”
Beer used to command 50% of the market, but it has dropped to just one-third of alcohol sales. Wine and spirits also fell as ciders and coolers grew.
Cannabis growth slowing
The report also noted that sales of recreational cannabis by provincial cannabis authorities and other retail outlets increased 11.6% or C$500 million from one fiscal year earlier, reaching C$5.2 billion during the fiscal year. That growth occurred even with a 2.8% decrease in the price of recreational cannabis from March 2023 to March 2024.
Despite that good news, the report said the growth came at a slower pace than the 15.8% sales growth from the previous year.
Cannabis sales in 2023-2024 amounted to C$163 per person of legal age to consume cannabis. Quebec’s sales though were impacted by its ban on cannabis vapes and topicals, as well as limited edible offerings in the province.
The ban on vapes is crucial as it turns out that inhaled extracts were the fastest-growing cannabis category during the reporting period, up 31.4% after growing 59% the previous fiscal year. It was the biggest contributor to the increase in cannabis sales in 2023-2024, accounting for more than two-thirds (67.5%) of the C$500 million overall increase.
Chart created by Statistics Canada.
The report defined dried products as flower and pre-rolled products. Inhaled extracts included vape pens, hash, wax and rosin, while ingested extracts include products like tinctures, capsules, soft gels and sprays. The Other category included topicals, seeds and other cannabis products not classified elsewhere.
[[{“value”:”Growth has slowed somewhat in cannabis sales, but alcohol sales declined more rapidly.
The post Canadians are increasing cannabis consumption, as alcohol declines appeared first on Green Market Report.”}]] Read More
