With just four months to the liberalization of the Canadian recreational cannabis market Deloitte estimates it could eventually be worth around $2.7 billion.
The global financial consultancy says this will be in addition to the existing $6 billion domestic market for recreational and medical cannabis, reports Bloomberg. In addition to the currently legal dried flower, oils, plants and seeds Canada is gearing up to legalize various recreational products including cannabis-infused foods, beverages and topicals before October 17, this year.
Deloitte’s survey of 2,000 Canadians estimates that roughly $1.6 billion will be spent on edibles, $529 million on cannabis-infused beverages and $174 million on topicals. Spending on concentrates is expected to hit $140 million, tinctures $116 million and capsules at $114 million.
Gummy Bears And Chocolate
Around half of likely edible users surveyed by Deloitte say they plan to consume gummy bears, cookies, brownies or chocolate at least every three months. The first wave of recreational legalization in Canada last October was quite limited in terms of product range, said Jennifer Lee, Deloitte Canada’s cannabis national leader.
Ms Lee said she doesn’t expect these new products to eat into revenues of existing categories in Canada, at least in the early days. “Right now, there’s too much demand in the market and there’s not enough product,” she said.
Shortages of cannabis in the Canadian market, as reported by CBD Testers,means that many products may not be available when the rules change this fall. And Bloomberg reports the looming legalization is ‘facing an even more shambolic start than the dried flower market’.
It says the federal government has not yet issued regulations for the new formats. Ms Lee believes it will be a minimum of 24 months before the industry normalizes.
17 New Recreation Cannabis Products
BNN Bloomberg reports that the The Ontario Cannabis Store is seeking to add as many as 17 new product types to its sales catalog come October, These are as follows:
Concentrates: Cartridges, rosin (a solvent-less concentrate made with heat and pressure), resin, hash, wax, kief (a dry powder) and shatter (a butane hash oil);
- Beverages: Hot, cold and non-alcohol drinks (each in single servings);
- Edibles: Chocolate, soft candy, hard candy and baked goods;
- Topicals: Lotions, creams and bath products
CBD Testers recently reported how Californian edibles business Plus Products is set to enter the Canadian market. Lucie Herold a Co-Founder of Plus Products, told CBD Testers: “We are always open to new markets opportunities where cannabis is legal.
“We have listed on the Canadian stock market and it the opening of the Canadian edibles market is definitely interesting to us.”