Canada leads way in growing cannabis market

The legalization of recreational use cannabinoids in Canada is set to make waves in the market this year. As the first G7 country to legalize recreational cannabis on a national scale, Canada is leading the world in taking this lucrative trade out of the hands of criminal gangs and making it part of the legitimate economy. With the global cannabis market to reach a value of $57 billion by 2027, Canada provides a great opportunity for companies to capture a piece of this rapidly emerging market, notes a media release.

With sales worth close to $6 billion, the Canadian cannabinoid industry has potential. It’s drawing the attention of big business, with Corona’s parent company investing billions in a cannabis beverage partnership. It is also opening a new market for companies in the related industrial hemp industry.

On October 17, 2018, farmers who hold valid hemp cultivation licenses will be allowed to begin to “harvest and store flowering heads, leaves and branches of the industrial hemp plants cultivated during the 2018 growing season.” Companies will now also be able to transport, sell, import and export any part of the industrial hemp plant legally. This allows those involved in the industry to take advantage of an entirely new product market utilizing hemp-derived cannabinoids. For companies already invested in this sector, changes in Canada may open the way for a vast increase in revenues.

More on the Canadian market

Estimates by Statistics Canada indicate that Canadians spent around $5.5 billion on cannabinoids in 2017. As many commentators have pointed out, this places cannabinoid-based product potential in the market on par with alcohol for value to Canadian businesses, and close to the total spent on wine each year.

With around 450,000 people using hemp and cannabis products each day in Canada, this promises to be a stable market with a steady stream of income. It’s one on which businesses can reliably build. And it’s not just about the sale of smokable cannabis. There’s potential for hemp and cannabis-based food and drink, as well as all the paraphernalia used in consumption and the supporting functions needed by the industry and retailers.

Hemp is used in a growing list of products, including dietary supplements and skin products, and even clothing and accessories. Overall, hemp is known to have more than 25,000 possible applications. And Marijuana Business Daily reports that the U.S. market for hemp-derived CBD hit $291 million last year and is projected to explode to $1.65 billionby 2021.

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