The cannabis industry is growing in Canada. With the next wave of legalization set for October 2019, edibles, topicals, and extracts will be available to consumers. Canada has a leadership position in the cannabis sector, with the next stage of legalization projected to create a consumer market worth $2.5 billion per year.
Edibles alone are expected to be worth approximately $1.6 billion per year, with cannabis-infused beverages projected to bring in $529 million annually. Read on to learn how the cannabis industry is giving Canada’s economy a boost!
Canada’s Industry Has Many Key Advantages Over Other Markets
Canada has some major advantages over other markets like the United States or other global players. These include:
- Government support
- A scalable market
- Public capital markets
There are challenges in other countries with accessing capital investment in the cannabis industry. However, there are more than 200 publicly listed cannabis companies on Canadian stock exchanges such as:
Over 55 of these companies have a market capitalization that exceeds $100 million. Banks, venture capital, and private equity firms all have been active in the cannabis space, raising valuations. This makes it a good time to apply for a cannabis retail application, taking advantage both of new legalization and potential of investment.
Government support has also boosted the industry. Investment, regulation, and research all create a unified market that is scalable, in contrast to more fragmented industries that are less so.
The Industry Can Grow as More Physical Stores Open for Longer
Canadians showed a preference for physical, brick-and-mortar stores over online purchasing, demonstrated by sales more than doubling in April 2019 upon new stores opening. Some evidence of brick-and-mortar stores boosting sales includes:
- British Columbia’s sales saw 37% growth in May 2019, following new store openings
- Quebec experienced a 25% growth in sales once store hours were increased to include the full week
- Alberta leads the country in retail cannabis sales with a plan to have over 200 physical stores, compared with a 25 store limit in Ontario
The growing number of stores in the country is expected to encourage growth and increase purchases.
Why a Cannabis Dispensary Licence Can Lead to Work in a Scalable Market
In order to be scalable, markets need processes, management, and standard operating procedures to manage growth. With a unified market, these standards and procedures are in place, thanks to regulation.
In a fragmented market, there is no single force that influences or drives the industry in a focused direction.
With a cannabis dispensary licence in Canada, you can take advantage of the unification in the industry. Since the market as a whole has scalability, the success of the sector not only benefits professionals in the field, but the Canadian economy as a whole.
Are you interested in how to apply for a cannabis licence?
Contact AAPS for more information.