During the month of June, investors were able to learn a lot more about the upcoming edibles market in Canada.
Marijuana-infused and edible items will be legalized on October 17 of this year. However, the government is projecting that sales will not kick off until mid-December.
Despite the expected slow ramp up, this market is set to play a critical role in the development of marijuana producers.
The government has been cautious, indicating that the initial rollout will take time as all the necessary parties start to get familiarized with the new set of cannabis products.
Similar to what happened with last year’s legalization of adult-use products, these new items will face restrictions on marketing, promotion and packaging. Every product will adhere to a limit of 10 milligrams of tetrahydrocannabinol (THC). Producers will be required to indicate in the labeling the percentages of THC or cannabidiol included.
“Additionally, as with any new regulatory framework, federally licensed processors will need time to become familiar with and prepare to comply with the new rules, and to produce new products,” the federal government said.
“Provincially or territorially authorized distributors and retailers will also need time to purchase and obtain the new products and make them available for sale.”
New reports shed light on importance of edibles
Deloitte issued its official projections on the impact of the edibles market on the Canadian economy. As per the study, the entire market for edible and infused products will be worth C$2.7 billion per year.
The researchers project that edible items alone will command a market leading share and rake in C$1.6 billion per year in Canada. Marijuana infused beverages, an item facing the pressure of significant investment from producers and alcohol companies, are set to represent C$529 million per year.
“According to our research and stakeholder interviews, much of this economic boost will be on top of current cannabis product spending,” Jennifer Lee, partner at Deloitte and the firm’s cannabis leader for Canada, said in a press release.
The second report offers a closer look into the edibles market and is a collaboration between Lift & Co. (TSXV:LIFT,OTCQB:LFCOF) and EY. This study focuses on consumer trends related to the new sector, as displayed during a presentation at the Lift & Co. Cannabis Expo in Toronto.
Ashley Chiu, cannabis strategic growth and risk leader at EY, told the Investing News Network (INN) that she expects the new edibles market to cause the entry of 1.5 million new consumers into the overall cannabis market in Canada.
Chiu explained to INN that the study used a new breakdown of consumers to better understand the needs and which groups offer more upside. The consumer categories are canna-savvy, canna-casual, canna-curious and unconvinced.
Watch the video above for more on what happened in cannabis during the month of June.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.