A new study by Deloitte focusing on the “cannabis 2.0” stage of legalization in Canada projects that the upcoming edibles market will be worth over C$2.7 billion per year.
The report, published on Monday (June 3), is the research firm’s third annual study of the Canadian cannabis market.
Deloitte projects the heavily anticipated edibles and infused marijuana products market will offer C$2.7 billion annually, with edibles alone representing C$1.6 billion per year in Canada.
In a survey of consumers, gummies took the top spot for preferred edible items with a 26 percent market share, while cookies, brownies and chocolates rounded out list.
The research shows that another cannabis item that has caused a splash of interest will also offer some substantial value.
Cannabis-infused beverages represent C$529 million per year of the total edibles projection.
These drinks have gained notoriety among investors thanks to partnerships between cannabis firms and alcohol producers looking for an entry point into this market.
As the effects from adult-use legalization are still being seen across the country, industry players expect the opening of sales for edibles and infused items to be a shot in the arm to the overall space.
However, one Canadian firm recently expressed concerns about the expectations for beverages.
In a conference call with investors and analysts in May, Cam Battley, chief corporate officer with Aurora Cannabis (NYSE:ACB,TSX:ACB), said the firm has focused on products with strong demand using a model that is based on what the legal US state markets have experienced.
According to Battley, cannabis beverages secure a “low market share” in the total marketplace.
Jennifer Lee, partner at Deloitte and the firm’s cannabis leader for Canada, said cannabis-infused edibles will “clearly threaten” the established alcohol space in Canada.
“According to our research and stakeholder interviews, much of this economic boost will be on top of current cannabis product spending,” Lee said in a press release.
As part of its study, Deloitte interviewed a variety of industry players on the state of the market.
Edibles market offers Canadian players edge over US
As the Canadian market has seen the growing pains from its legalization path, the US space has seen exponential growth in investment and interest thanks to the emergence of multi-state operators, companies that manage assets in legal cannabis states.
Deloitte is bullish on the potential for the Canadian market to gain a spark from the entry of edibles and beverages.
The study indicates that the market will need to be patient as the regulations for edibles come into place.
“There will be missteps, delays, and frustration,” Deloitte says about the legal framework for cannabis and derivatives in Canada.
As mentioned, Deloitte refers to this new stage of legalization as “cannabis 2.0,” noting that, while it will take some time for the market to really establish itself, in time the momentum will be great enough to match the interest for the US market.
“Cannabis 2.0 will position Canadian companies and talent for global growth — even as the US market gains momentum,” the report states.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).