What does the future hold for Canada’s legal cannabis landscape? Since legalization spread across the nation on October 17, 2018, Canada has undergone a rapid transformation. The “Cannabis Act” or “Bill C-45” will likely (eventually) dissolve both the black market and Canada’s medical cannabis industry; melding the North American country’s legal weed industry into a hotspot for alternative industries to cash-in on cannabis.
After becoming the first G7 nation to fully legalize recreational cannabis, Canada set a wave in motion across the cannabis industry at large. Investors from overseas immediately started taking interest in Canada’s cannabis industry during the build-up to legalization, with no sight of things slowing down anytime soon.
Nonetheless, nobody is entirely sure just how large the market will be. Then again, since 4.9 million Canadians admitting to consuming some form of cannabis in 2017, changing attitudes on the plant are sure to influence the numbers that are effectively steering the nation’s success.
Federal Cannabis Legalization in the U.S. Will Influence Canada’s Industry
Home to some 37.1 million people, Canada’s population is very close to California’s population of 39.7 million. How it will fare in the revenue stakes compared to the U.S. cannabis industry depends on whether or not the U.S. embraces federal legalization.
During the first 24 hours of legal cannabis sales in Canada, Ontario’s online store had registered 100,000 orders. During the first two weeks of legalization, $43 million CAD was raked in by legal cannabis businesses, such as dispensaries. Of that amount, Ontario and Quebec accounted for half of the sales.
A rush of investment is sweeping across the Great White North as a result of rising consumption and sales. Many companies are capitalizing on Canada’s cannabis industry, even though it’s in its early stages. Nutritional High (NH) is a prime example.
By venturing into business partnerships spread across Colorado, California, Canada, Nevada, Oregon, and Washington, NH is positioning itself as a well-established company that is adapting to growth in an expanding industry.
Companies in the Cannabis Space Must Capitalize on Trends
In order to stay abreast of evolution amidst the unfolding of Bill C-45, cannabis companies need to focus on trends and meet consumer demands within those emerging avenues. Thanks to scientific research and state-of-the-art technology, cannabis product manufacturers are finding innovative ways to deliver consumers a dose of cannabinoids.
Take NH’s FLÏTM product which includes a range of cannabis-infused mints. Available in four unique flavors, the mints are infused with a specific dosage of THC or CBD – perfect for controlled dosing. FLi is just one example of a brand acquired by NH. Through bolstering its portfolio with an assortment of products that ensure convenience, discretion and most importantly, safety, NH is well-positioned to infiltrate Canada’s growing market.
Recently, the company solidified its entrance into the Canadian cannabis market when it revealed that its joint venture agreement Abba Medix, who recently received an oil extraction license from Health Canada.
Infused edibles aside, the cannabis market is also welcoming a number of new products designed to simplify dosage, usage, and overall efficacy. Those products include vaporizers, lotions, sprays, tinctures and more. Capitalizing on these trends may prove volatile, but as more Canadians open up to the idea of legal weed, demand for product diversity will grow.
Partnerships Across the Border Expected
The recent Democratic House flip has changed the outlook for federal cannabis legalization in the U.S. What’s more, since former anti-cannabis Attorney General Jeff Sessions stepped down from his role, the future looks green for federal cannabis legalization in the U.S.
What’s this got to do with the future of Canada’s cannabis industry? Well, as it blossoms, investor attention will be piqued from far beyond the nation’s borders.
Cannabis industry investors could take inspiration from NH, which has already planted roots in 5 of the largest legal U.S. cannabis markets. Currently, the company is working on various stages of operations in California, Colorado, Oregon, Nevada, and Washington. Combined with its involvement in America’s northern neighbor, the Canadian company is setting the foundation for success.
Canada’s Provincial Governments will Rake in Profits and Taxes
Amidst the wake of Canada’s cannabis legalization, analysts are getting excited calculating just how much money the market might yield. According to a report from the Canadian bank CIBC, the nation will swell to CAD $6.8 billion by 2020, with residents expected to consume a whopping 800,000 kilograms (1.7 million pounds) on an annual basis.
CIBC speculates that, of the aforementioned projected figure, Canada’s provincial governments will harvest $3 billion CAD in earned profits and taxes. Conversely, Deloitte predicts that the recreational market alone could top $8.7 billion CAD annually and create an “overall economic impact” amounting to $22.6 billion.
After all, a significant portion of the industry will rely on businesses that don’t even touch the plant, such as companies that manufacture and supply vaporizers, cannabis grows, LED lamps and fertilizers.
However, since these figures were conjectured prior to Canada’s cannabis legalization rolling out late last year, it’s really just a case of waiting and seeing how the Cannabis Act’s first year of passing will pan out.