According to a new report from Deloitte, the next wave of cannabis legalization—specifically the legalization of cannabis edibles, topicals, and concentrates slated for October 2019—will create a new market worth over C$2.5 billion a year.
“The report, Nurturing new growth: Canada gets ready for Cannabis 2.0, says the legalization on October 17, 2019, of edibles containing cannabis and cannabis concentrates will create new product mixes that will reach consumers who may have been reluctant to try traditional cannabis consumption methods that are currently available.
Many of these novice or “cannabis-curious” consumers will be older, often female Canadians who will prefer more familiar consumption formats, notably edibles such as baked goods.“
The power of female consumers, especially in regards to the Canadian cannabis market, is not something that investors should underestimate: some reports suggest that women control up to 85% of all consumer purchasing decisions.
Moreover, an issue of the Harvard Business Review titled ‘The Female Economy” suggests that in the addition to fitness and apparel, women are most likely to spend more on food and beauty—two product categories that are expected to be directly impacted by the legalization of cannabis edibles and topicals.
Breaking Down Canada’s Market For Alternative Cannabis Products
“More than half of the estimated C$2.7-billion Canadian market for edibles and alternative cannabis products will be spent on edibles ($1.6 billion), followed by cannabis-infused beverages ($529 million), topicals ($174 million), concentrates ($140 million), tinctures ($116 million), and capsules ($114 million).“
The Deloitte report also makes a point to say that the success of Cannabis 2.0 will depend on how well Canadian cannabis companies manage customer expectations. In other words, Canadian consumers had better be prepared for another supply shortage of cannabis products—this time edibles, topicals, and concentrates.
The good news? The introduction of these new cannabis product types should, in theory, alleviate pressure on the Canadian cannabis supply chain, giving Canadian consumers a better chance of getting their hands on chronically sold-out products.
Collaboration Is The Key To Canadian Cannabis Leadership
On the future of Canada’s leadership in the cannabis market, Deloitte puts it best…
“The capital markets, scientific community, and government regulators must align and work together to create unique intellectual property for cannabis and ancillary industries that support it.”
It’s a big ask to bring people together—especially people with different viewpoints and disciplines—in the pursuit of a shared goal.
But judging from the growth of Canada’s cannabis industry thus far, Canadians seem up to the task.