The multibillion-dollar cannabis industry in Canada is showing no signs of stopping anytime soon. In fact investors from around the world are turning to the Canadian cannabis market to invest their millions of dollars. According to Vancouver-based financial service firm Canaccord Genuity, the Canadian cannabis industry is poised to be worth an excess of 4.5 billion dollars US by 2021. The recreational / retail marketplace size of the cannabis industry in Canada is one that is setting itself up to become massive.
According to analysts from Canaccord Genuity, Canadians are expected to buy an estimated 882,000 pounds of cannabis alone in the first 365 days of legal retail cannabis sales. The demand for medical and retail cannabis combined is expected to be more than a million pounds by 2021 according to the same group. If you follow the groups that project these numbers you will also realize that Cannacords estimates are considered to be ones that are very conservative. There’s even talk of Canadians facing a shortage of cannabis upon its legalization.
The Cannabis industry is a hard one to peg the numbers on. You have to factor into the equation more than just the sale of cannabis flowers. Edibles and concentrates make up a huge part of the cannabis market in Canada. When you look at the influence of organic vegan products and the demand they have seen over the past four years in Canada it’s easy to spot a growing trend of cannabis infused organic vegan edibles becoming even higher in demand.
Assuming that the sales of cannabis begin on a retail level across Canada in 2018, Cannacord reports that they believe the market to be worth an estimated 6 billion dollars by 2021. Other groups such as Deloitte believe this number to be much higher. In fact Deloitte went as far as suggesting that through a combined total from distribution, paraphernalia, tourism, and business taxes that the industry could be worth as much as 22.7 billion annually. Of course nobody truly knows the number of sales that will be produced from legalized cannabis across Canada until cannabis is legalized for retail purposes.
The numbers will surprise most analysts as there are a great number of individuals who still keep their cannabis consumption private do to the repercussions they face from work, school, and other obligations in life. When cannabis is legal these individuals will have a chance to express their opinion and choices as responsible adults and consumers. As of 2015, the population of Canada was 35.85 Million according to results collected from World Bank. If say, 15 million, just under half of the population of Canada were to spend $25 a week on cannabis, it would total 1.5 billion dollars monthly and 18 billion dollars a year. Just throw that equation into random statistical evaluations and see how it compares. No matter what the predictions say it will truly be remarkable to see how things unfold in Canada in the months to come!