The cannabis industry in Canada is projected to get a big boost with edibles and other derivatives becoming legal coming October. Based on a new Deloitte report, the worth of this new segment will be approximately $2.7 billion. Edibles will account for more than half of this amount.
While recreational cannabis has been legal for about 8 months, edibles and other cannabis derivatives have remained illegal all through since Health Canada required more time to make risk assessments and prepare for their rollout.
A survey of 2000 Canadians made by Deloitte suggests a breakdown of different components within the market of derivatives as follows.
- Cannabis infused edibles: $1.6 billion
- Beverages infused with cannabis: $529 million
- Infused topicals: $174 million
- Cannabis Concentrates: $140 million
- Infused Tinctures: $116 million
- Cannabis Capsules: $114 million
The wider assortment of cbd-infused products waiting to be made legal this fall are highlighted in the edibles category, which will become the most popular. In more mature US legal markets, cannabis-infused gummy bears and chocolate have proven to be an incredible hit and are anticipated to appeal to Canada’s broader audience.
About half of potential edible users polled by Deloitte held that they would prefer cookies, gummies, and chocolate at least one time for every three months.
Remarkable Opportunities Ahead
The launch of the edibles market will create doors for investors to carve market share early on. OrganiGram Holdings intends to position itself as cannabis-infused chocolate leader, while companies such as Canopy Growth Corp are looking to bank on the popularity of cannabis-infused beverages.
However, Deloitte has pointed out that not all companies are going to do well. According to Jennifer Lee, the National Leader for Deloitte in Canada, only the cannabis companies that have strong professional leadership, a focused strategy, business fundamentals, willingness place bets, and readiness to wait out changing regulatory environments will prosper in the industry.
Global Market Expected to Hit US$194 Billion
Despite the impressive Canadian market’s projected value, Deloitte anticipates that in 5 years, alternative cannabis product’s demand will hit US$194 billion. The growth and opportunities are expected throughout the world, but most of this growth is likely to come from North America and the U.S. in particular.
As cannabis gets legalized in more U.S. states, a significant potential for edibles will be uncovered. In Canada, the soon-to-be edibles market will benefit many companies with some organic growth. However, this will be a drop in the ocean when compared to the U.S. market’s potential if the cannabis legalization in more states continues.