Cannabis Retail and Distribution: Industry Vertical Infographic

 

How do retail and distribution apply to cannabis?

Companies in this category sell and distribute cannabis and/or hemp products. This includes licensed brick and mortar retailers, pharmacies, delivery services, and others.

Subsegments

• Retail stores and medical dispensaries
• Distributors
• Transportation and delivery

The cannabis retail and distribution investment opportunity

Since legalization, cannabis sales through regulated channels have steadily increased while spending in the illicit market has declined¹. In Canada, record-setting monthly cannabis retail sales figures seem to be correlated² with brick and mortar store openings.

We expect that successful retailers will continue to make the purchasing process easier and more convenient. They may also secure strategic locations, implement loyalty programs and in-store activations, or offer online ordering and doorstep delivery, where possible. Retailers may gain more traction by using consumer data to inform their pricing, promotion, and product strategies. In some jurisdictions, retailers also have an opportunity to build customer loyalty through creative brand awareness campaigns and consistent, memorable in-store experiences.

Key statistics for the cannabis retail and distribution vertical

• C$2.8B - est. implied value of annual adult-use cannabis market in Canada in 2020²
• US$37B - est. total of U.S. cannabis retail sales by 2024³

 

¹Source: Statistics Canada - “Detailed household final consumption expenditure, Canada, quarterly (x 1,000,000)” (2020)
²Source: Statistics Canada; Marijuana Business Daily. “Canada’s recreational marijuana sales grow to record CA$231 million.” Based on run-rate from July 2020 sales figures (2020)
³Source: Marijuana Business Daily - “US retail marijuana sales on pace to rise 40% in 2020, near $37 billion by 2024” (2020)

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