Canada: cannabis industry set to exceed $7 billion in 2019

According to latest figures from Deloitte, According to the results of a survey conducted by the Canadian Cannabis Association, an auditing and consulting firm, cannabis sales in Canada could exceed $7 billion as early as 2019.

Deloitte conducted an online survey of 1,500 Canadians from all provinces between March 6 and 20 of this year. The majority of respondents indicated that they intend to buy and consume cannabis more frequently when it becomes legal, and most are also inclined to pay more than on the black market.

The report, entitled «A society in transition, an industry ready to bloom», estimates that Canadians could spend up to $7.2 billion in 2019. Legal sales of recreational cannabis would account for $4.34 billion, and the medical cannabis could bring in between $770 and $1.79 billion. The report predicts that the black market could account for between $510 million and $1 billion.

«The cannabis legalization alone won't convince most current cannabis consumers to abandon their current suppliers altogether,» according to the report. «But our research suggests that the right combination of quality, price and safety could do the trick.»

The current average price of cannabis on the black market is 8.24$ per gram. Survey respondents indicate that they would be willing to pay 9$ per gram for legal cannabis.

«Over time, retailers will better understand their customers» needs and behaviors, improve their customer experience and engagement programs, and refine the quality and integrity of their products. We expect to see a growing share of cannabis sales in the legal market," says the report.

Deloitte suggests that edibles speed up the adoption of legal cannabis, even though they will only be available one year after legalization in Canada.

55% of respondents said that better quality products would convince them to switch to the legal market, while others indicated that a combination of price, product or safety guarantees would convince them to go to legal stores.

The report also anticipates a new type of cannabis consumer, aged 35 to 54. These new users are likely to be better educated than traditional Canadian users, less likely to take risks, and likely to use less often, perhaps only once a month (41% of respondents). Only 20% said they planned to smoke every day, the same percentage as today.