The future Canadian market for edibles, concentrates and topicals estimated at $2.7 billion

The second wave of recreational cannabis legalization is not far off in Canada. This October, one year after the legalization of flowers and oils, the edibles, concentrates and topicals will be legal. First estimates indicate that this new market could be worth $2.7 billion.

Less expected but still lucrative legalization

This estimate comes from the international consulting firm Deloitte. According to the company edibles which will account for the largest market share, with $1.6 billion in annual sales. Cannabis-infused beverages, a market that has already attracted major investments, 529 million a year. The remainder - dyes, topical, The company's annual sales are estimated at $400 million.

Despite these promising figures, a survey conducted by Dalhousie University indicates that demand for edibles has declined since the legalization of cannabis. In 2017, 46% of those surveyed said they were interested in edibles compared with only 36% of respondents this year. «What we're getting from this survey is that people aren't as excited or enthusiastic about cannabis in general,» explains Sylvain Charlebois, Director of Agri-Food Analysis Laboratories.

Deloitte's analysts point out that «the introduction of cannabis-infused edibles will clearly threatening the alcohol industry because consumers use these types of products in similar contexts». This effect of legalization has been anticipated by several alcohol groups, who have committed to partnerships with Canadian cannabis producers and laboratories to develop cannabis-infused beverages. The credo seems to be «diversification rather than competition».

The government has already published initial regulatory considerations, last year, but these are not definitive. Health Canada has indicated its willingness to enter into dialogue with the industry. The government's proposals include THC limits for each product category, taxation based on THC content, and strict packaging standards.

At the same time, Health Canada to grant new licenses production, especially for outdoor cultivation. To avoid shortages of legal cannabis From the very first days of legalization, we need to ensure that we have enough raw material for extraction and the production of by-products. New harvests need to start as soon as possible.