Canadian statistics are showing that consumers seem to be more inclined towards cannabis oil and vaping than they are to smoking the traditional marijuana flower anymore. Canada is friendly towards marijuana and has been for a while, so they may be a good benchmark for states here in the U.S. that are newer to the legal marijuana industry. The numbers coming out of Canada show the consumers there are now buying cannabis oil at a faster rate than they are purchasing flower, businesses are even stocking oil at a faster rate than they are flower. If you are a medical marijuana patient in Florida, cannabis oil through vaping is the only inhalation of marijuana that is permitted legally.
If earnings reports from Canadian licensed medical cannabis producers did not prove that the market prefers cannabis oil to dried cannabis, then the numbers out of Health Canada should.
The number of Canadian medical marijuana patients continues to grow rapidly and as of March 31st, there were 167,764 registered patients (almost 30% higher than the prior quarter).
Health Canada reported that 5,673 kilograms of cannabis oil were sold during the quarter that ended on March 31st. This number is 38% higher than the prior quarter and 870% higher than the same quarter last year.
Numbers Show a Remarkable Trend Toward Cannabis Oil
When you look at the amount of dried cannabis sold, this number increased by less than 10% when compared the prior quarter and less than 30% when compared to the same quarter last year.
Numbers don’t lie and this helps confirm that smoking dried marijuana is declining. Licensed producers have recognized this trend and are focused on increasing capacity to satisfy the higher demand.
When compared to the prior quarter, the amount of dried cannabis in the licensed producers’ inventories increased by less than 0.3% while the amount of cannabis oil increased by almost 40%. When compared to the prior year, the amount of dried cannabis increased by less than 70% while the amount of cannabis oil increased by more than 265%.
A More Attractive Opportunity
Cannabis oil is in high demand and licensed producers have many reasons to want to capitalize on this opportunity. One of the main reasons why we are favorable on this trend is due to the fundamentals.