While the rest of the world was watching as Canada stepped into the limelight by becoming the first G7 country to legalize recreational cannabis, the business landscape got loaded with anticipation related with the promising gains expected to come along with the rise of the Canadian pot industry.
Almost a year after legalization, one of the hottest questions remains as relevant as it used to be prior to Canada joining the #freetheweed movement: Will the expected business gains live up true to experts’ claims?
Furthermore, what is to become the most profitable cannabis business segment? Should businesses stack on cannabis seeds for sale, or maybe target the in-vogue CBD fever by selling CBD Oil and/or other CBD-laced products? Then what about the boom of high-end cannabis smoking devices, and nonetheless, the highly promising cannabis-infused foods and beverages sector?
Ultimately, if there is one thing for sure in the ongoing post-legalization massacre, then it’s certainly the growing acceptance and appeal of cannabis to a broader and broader number of people, ranging from healthy lifestyle enthusiasts, hardcore veteran pot users, medical marijuana users, random weed consumers, and nonetheless, the curious gardeners who simply want to enjoy growing a plant that has been demonize for far too long throughout the course of history.
The Pot Industry in Canada Is Ready to Bloom, and Businesses Are Ready to Ride the Highly Profitable Opportunities that Come along
Ever since October 17, 2018, and in fact, even prior to the date marking the revolutionary legalization of recreational cannabis nationwide in Canada, the public officials have been into balancing a rather complex, three-component mechanism, consisting of safety, health, and revenue, striving to not only ensure a controlled, safe supply of cannabis products but also trying to keep cannabis away from the reach of minors, and nonetheless, trying to undermine the illicit market.
If the government’s approach to shaping and regulating the newly established pot industry is to be successful, Canada is sure to win global recognition, and moreover, to set an example for other nations that can leave a lasting imprint on the entire history of mankind.
Up-to-date, the government’s push for legalization has already managed to pose an extremely strong effect when it comes to sparking a huge, unprecedented wave of innovation in the field of cannabis science and research, accompanied by massive advances in entrepreneurship sharing that we-can-do-it-spirited, fast-growing cannabis technology sector.
However, navigating the pace of a brand new industry with such a GIGANTIC moneymaking capacity, marked by such a massive-scaled consumer market definitely proves to be easier said than done. Ultimately, patience, consistency, and ability to embrace and learn from trial-and-error make up for the secret ingredients of enjoying the same insanely high success attributed to the Canadian pot business at the very beginning of its establishment.
Questions like what will the legal cannabis market in Canada look like a year from now, a decade from now, or several decades from now, remain unclear, at least as for the time being, although marketing agencies are into severe competition of coming up with the latest, most relevant facts and stats on that matter.
There are experts who confidently state that partnering with wholesale cannabis seeds suppliers is one of the best business moves, especially with bulk marijuana seeds’ prices being literally a bargain that promises succulent paybacks for the canny entrepreneurs. Yet others swear by the prospective business gains of selling cannabis oil and targeting the veteran pot consumer market through alluring discounts, personalized deals and that special kind of we-feel-you-bud-buddies attitude which is believed to turn more of the hardcore cannabis enthusiasts who already have years of experience with the green medication into loyal customers.
In reality, the truth about the highly revered cannabis business gains is somewhere in the golden middle. There is plenty of room for any business operating in Canada to take the best advantage of the ongoing cannabis fever and to give you a better taste of the dimensions of this huge market segment, we have a list of intriguing stats shared below.
1. It is expected that the total marijuana market in Canada, encompassing the medical, recreational, legal and illegal products, is evaluated to generate about $7.17 billion (mind the B, we’re not talking about millions!) as soon as by the end of 2019, more than half of which, or more precisely, $4.34 billion are expected to come from the legal recreational pot market.
2. Medical cannabis alone is expected to generate anything from $0.77 billion to $1.79 billion, while the illegal market is anticipated to make up for $0.51 billion and up to $1.04 billion.
3. Stats on the first quarter of 2018 pointed out to 8% of all medical cannabis users obtaining their green medication by growing weed themselves or by friends who grow weed for them. This number is expected to triple by 2020, although no further highlights on whether the medical or the recreational cannabis growers share are bound to rise, pointing out to a high probability of the expected increase of at-home cannabis growing to actually surpass experts’ projections on that matter.
4. In general, cannabis consumption through legal channels is anticipated to grow by up to 35%, and especially with the tendency of new pot consumers offsetting the proportion of current users, the latter still gravitating towards illegal channels.
5. The money Canadians are expected to spend on cannabis are also expected to rise with some whopping 58%. However, there is actually a catch, as the expected rise is primarily due to prices for legal pot products getting higher.
6. The Canadians who are most likely to consume pot are not neophytes. 74% of marijuana users in Canada share that they have had antecedent experience with recreational pot. 41% reported having consumed cannabis at some point in the past five years. But most importantly for Canadian businesses looking into profiting big from the newly established legal status of cannabis, experts highlight that legalization may come with the opportunity for conservative Canadians who were never really into consuming the herb on a regular basis to occasionally enjoy returning to their younger days.
7. 74% of women shared that they use cannabis for relaxation and/or sleep, vs. 59% of men reporting to use cannabis for the same reasons.
69% of females said to consume pot for stress and/or anxiety relief, as compared with 55% of men opting for cannabis because of trying to cope with the same concerns. 48% of cannabis consumers overall (69% of daily consumers) shared that the major reasons for consuming pot are to improve their mood, while about 35% of daily marijuana users reported to opt for the ancient herb to help them with concentration and thinking.
The Cannabis Business Gains after Legalization: Conclusion
With Canadians willing to pay more for cannabis but still remaining extremely sensitive to price, growing weed from seed remains one of the favorite options to enjoy more of the green medication at fraction cost, even though the number of at-home cannabis growers and future pot cultivation enthusiasts in Canada is not at all a big focus of the government’s ongoing battle to balance between health, revenue, and safety.
As the Canadian society is still in transition, faced with the newly established pot industry, all ready to boom but somehow still far away from reaching its fullest potential and living up true to experts’ claim, the business landscape is conquered by those who are brave enough to take a step ahead of their competitors, even if forced to work their way into bathing in high paybacks with big doses of creativity and vision.
While the legalization of recreational cannabis marks a crucial change in Canadian society, with expected legitimization of consumption and diminishing of the stigma that keeps surrounding pot use up-to-date, the industry is certainly to become one of the biggest competitors to the already well-mature and controlled tobacco, beer, wine, and spirits in general, business segments.
Experts believe that recreational pot consumption will eventually outreach medical cannabis consumption, and moreover, it will become mainstream, eliciting no different reactions than what having a pint of beer elicits up-to-date, further highlighting that the same will most probably happen to cannabis cultivation, with the elicited reactions to growing weed at-home best to be described as about as much the same as to enjoy a batch of fine craft beer.