The Problem With Canada’s New Cannabis Products


Although Canadian marijuana edibles, topicals, and extracts are set to be legalized on October 17, 2019, customers won’t be able to actually purchase them from retail stores for another 2 months—thanks to the fact that federal license holders are required to provide a 60-day notice of intent to sell these new products. Given that each and every new marijuana edible, topical, and extract product has to be “evaluated on a case-by-case basis” before being approved, marijuana edibles legalization in Canada is starting to look like a bit of a headache for Canadian cannabis companies…

How Will Marijuana Edibles Legalization In Canada Pan Out?


With cannabis edibles making up 10% of the entire U.S. marijuana market in 2018, there has been significant excitement amongst cannabis companies and consumers alike for the legalization of new cannabis products in Canada.

However, onerous packaging requirements and vague ingredient restrictions have left many wondering just how popular Canada’s take on marijuana edibles will really be.

Combine these factors with the fact that Canadian marijuana edibles, extracts, and topicals (aka Cannabis 2.0) are expected to face a nationwide supply shortage, and it becomes clear that any real market impact from Cannabis 2.0 products will likely be many, many months away given last year’s legalization challenges.

Via Bloomberg,

“The country [Canada] has been plagued by chronic supply shortages since legalization took effect and that may get worse as new items are added, according to industry players.

Telsey Advisory Group estimates that Ontario, Canada’s most populous province, is currently meeting just 15% to 20% of total market demand.”

Canadian Cannabis Regulations May Stifle Product Innovation


Business leaders (regardless of their industry) understand that the key to success lies in failing quickly.

Unfortunately, it appears that Canadian cannabis companies won’t be able to do so, given Canada’s regulatory approach (ie. case-by-case product evaluation) to new Cannabis 2.0 products. This could present a serious challenge to cannabis product innovation, and potentially one more reason as to why Canada’s cannabis industry will remain in the shadow of the United States’.