Edible sales are falling in Canada
The Canadian edible is an exciting part of the cannabis industry, and it is of enormous interest to the Canadian marijuana user, in part, because it can help newcomers to understand and enjoy the cannabis experience without smoking. According to the recent data submitted by the federal health regulator, there is a discrepancy in cannabis edibles sales versus the Canadian edible inventory.
The data indicates that sales growth for the Canadian edible market is slowing down. The Canadian edible lineup can also include beverages, gummies, lotions, dissolvable strips lotions and balms. The discrepancy reported is around 6.7 million units, which is an increase from the previous month. There are also another 3 million units of cannabis edibles that had been placed in the final packaging stage.
Tracking this number of Canadian edibles has revealed that over 200 adult-use cannabis dispensaries, which opened between June and October, have some of the inventory. There is a small amount of those cannabis edibles that can be contributed to the medical cannabis market. The collected data indicated that as more stores came on board, the growing sales of cannabis edibles slowed down, most likely due to widespread distribution.
Restrictions responsible for the falling sales
Some of the restrictions on edibles may be posing a problem for this part of the Canadian edible industry. The heavily restricted market does not go lightly on the number of rules that are imposed on cannabis edibles. Currently, the Canadian edible is limited to 10 milligrams per serving or dose. Compared to the United States, where cannabis is legal, consumers can purchase products with 100-gram packets. In Canada, edibles purchased through lawful means require an increase in consumption to achieve the desired results.
The 10 milligram restrictions are too small of a THC dose, which forces many Canadian cannabis users to use more than one edible at a time. Ten milligrams of THC (tetrahydrocannabinol) per packet is not enough for many Canadian cannabis users, and this can lead consumers to seek another market. This barrier to legal cannabis edibles sales drives the consumer to the black market where the number of milligrams' regulations are not nearly as restricted.
The Winnipeg-based cannabis chain Delta9 Cannabis Inc was prompted to hire 76 new employees during the pandemic resulting in a 30 percent increase to the company’s workforce. Although consumer traffic is still high, the observed attitude within the consumer's purchasing habits seems to have changed. There is no longer a rush on purchasing cannabis edibles or stockpiling them for troublesome days, as the world has experienced with the onslaught of COVID-19.
The impact of COVID-19
The deadly COVID-19 virus of 2020 has affected people worldwide, and it has also negatively impacted Canadian edible sales figures. When COVID-19 hit the world, cannabis dispensaries, along with many businesses, were closed to the public. There was no more browsing for which cannabis edibles were best suited for you. When the cannabis industry was declared an essential service, edibles' sales increased but perhaps not enough to substantiate the reported discrepancies.