Canadian Cannabis Industry Is Booming; Here Are the Stats
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By PAGE Editor
Canada had been trying to legalize recreational marijuana since 2009, and it was until October 2018 that the country finally approved its legal use. While the journey has been quite long, it seems it was worth the wait. Since the legalization of cannabis, the Canadian cannabis industry has seen a tremendous rise in the demand for cannabis products.
During the coronavirus pandemic (March 2020- February 2021), the total marijuana sales skyrocketed up to $2.5 billion. Well, there's a lot more to the Canadian cannabis sector that you would get to read in this article.
What Do Experts' Predictions Suggest?
Speaking of how global analysts predicted the market, people are more likely to buy cannabis products than ever before. While the actual marijuana sales did not meet the estimated sales figure, every other canadian cannabis dispensary combined is predicted to hit $4.8 billion in 2022 through cannabis sales, according to MJBiz Daily.
And that's expected to be a 13.4 percent annual compound annual growth rate (CAGR) until the year 2030. The rising figure is also an indication of how vast the scope of cannabis is in today’s everyday life.
It's the Role of Rising Competition
Obviously, it's the upward trajectory of competition among cannabis retailers and producers that has led to an increase in the overall cannabis market. Right after the pandemic, the prices of different cannabis products fell sharply. For instance, the price of vape pens and concentrates plummet by 35 percent, flowers by 16 percent, and edibles by 11 percent.
The cut-throat competition has resulted in such a change in the cannabis market, opposite to how other goods are seeing a wave of inflation.
Well, the competition also comes as a result of the volume of the Canadian cannabis market. At present, the country has more than 800 individually licensed dispensaries, including both medicinal and recreational. Plus, the approval of recreational cannabis has pushed consumer demand by a considerable number.
There Will be a Substantial Inclusion of Retailers and Producers
Considering the steep competition among retailers and producers, experts suggest there will be a heavy influx of mergers and acquisitions over the next few years. Latest predictions also point out the fact that more than 800 cannabis businesses would not be able to be upheld in the long run and that six major players will dominate the cannabis market.
Well, this has also affected the gross profit margins of small cannabis retailers who have been struggling with low prices and supply chain issues. Big franchised businesses are expanding their scale, which again comes as a threat to small businesses.
Final Thoughts
The Canadian cannabis market is indeed witnessing a sharp rise in its market share. However, until 2023, the country will see no major changes in the Cannabis laws.
The federal government is expected to amend the cannabis laws in 2023, which would likely change some of the burdensome laws of the current cannabis act. Keeping the federal laws and regulations aside, the country is anyway all set to ramp up its marijuana sales in the coming few years.
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