The Canadian cannabis market has been on the rise for quite some time now, but the past year or so has been instrumental to the growth of the industry overall. A new study shows that Canadians will spend as much as $7 billion in the coming year on marijuana if legalization occurs nationwide for recreational purposes. Consumption of cannabis is scheduled to increase by as much as 35% over the course of the next year as well.
This number of $7 billion is a combined number including the recreational consumption of cannabis as well as medicinal within Canada. One of the exciting factors to the industries growth is the fact that it has yet to fully absorb the black market on cannabis in Canada. The black market is currently worth somewhere around $1 billion per year, but this number is undoubtedly subject to change as soon as legal cannabis is easy to come by and even easier to purchase. After legalization, however, prices of cannabis are scheduled to go up as much as 10% per gram due to the taxes and other expenses associated with the market.
A new study has come out showing that in Canada, the public will be more inclined to purchase more cannabis as soon as it is legally available to them. Once cannabis is federally legal, more people will begin using cannabis then ever before with the number showing as much as a 68% increase in purchasing of cannabis than prior to legislation.
Purchases by those who already use cannabis are scheduled to increase by as much as 22% in the coming year with the amount spent by the individual somewhere around $100 per month. Those who do not use cannabis nearly as frequently are scheduled to increase their monthly spending on the substance by almost 70%, which is quite positive news for the whole of the cannabis industry.
According to the survey “Nearly half, or about 48%, of respondents who identified as daily cannabis consumers said they use cannabis products to improve their mood. More than one-third of daily users report consuming cannabis products to aid in thinking or concentration.” The survey also finds that “where cannabis consumers buy their weed matters. About half of survey respondents said they’re interested in buying from the government or licensed private retail stores. Additionally, physical retail locations are important in the nascent industry – about 47% of consumers said they’d like to buy from a bricks-and-mortar location.”
The industry has also been turning towards taking advantage of the digital space by offering ways to buy cannabis online and have it delivered. Although this is not scheduled to nearly take over the physical location sales, it is interesting to note that this could help to continue boosting the market’s revenue in the coming years.
The Canadian Parliament is scheduled to take a third and final vote on whether or not cannabis should be legalized nationwide for recreational use during the first months of summer. If the bill passes, it will completely change the market as this will represent the first time that a developed nation has legalized cannabis for use by the public. The hopes are high that given how new the industry is, it will continue to grow to its full potential in the coming years. With a positive mix of fair legislation and continuous investments in the sector, it seems as though marijuana is continuing to find its place in the market and in the lives of the many people who rely on it for treatment or recreational use.
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