Canadian Cannabis Market Trends

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“It’s going to be a very interesting year,” said Brightfield Group Managing Director, Bethany Gomez. Canadian sales are expected to reach $8.8 billion by 2027 cannabis The market is on fire. Thanks to consumer demand, great LPs They have mostly abandoned the single-crop “Sea of ​​Green” concept and have reduced the range of distinct flowers. The Convention on Biological Diversity The market suffers from regulatory restrictions. But the opportunity exists to have a foothold for the United States. Small, artisanal brands still compete with SEO with their deep-rooted distribution networks. But things look a lot different in 2022 than they did in 2020. “We’re seeing a lot of disruptive craft brands starting to emerge,” says Bethany.

Compared to its population, Alberta outperforms all of Canada.

It ranks highest in spend per capital on Canadian hemp products. AlbertaThe US’s free-market approach means fewer regulatory hurdles for retail licensees to overcome. Allowing more free competition by 2027, Alberta It expects to reach more than $1 billion in revenue from cannabis sales.

In contrast, Canadian cannabis performance in Quebec is still poor

despite the size of its population. Quebec Taken the opposite approach to Alberta‘s. All retail is government owned and controlled. By reducing competition among entrepreneurs, the government has limited product options and efficacy. the foodConcentrates and vapes are illegal. For this reason, many consumers in Quebec continue to use the old market.

British Columbia is the historical home of Canadian cannabis.

So it is not surprising that the county expects to overtake Alberta in sales by 2027. Much of this depends on whether BC removes the middle man in distribution. and whether they have developed a straightforward farm-to-consumer model. Likes Albertathe industry expects to grow to more than 1 billion sales by 2027. British Columbia It is also (finally) taking steps to bring legacy producers to the legal market. The reliance on the old market is likely the reason for the drop in sales in the county. In addition, the province has consumer brands. There is BC-Grown, Certified Organic, Indigenous BC, among others.

Ontario has become a hotbed of Canadian cannabis.

As of early 2022, there are over 1500 cannabis retailers It operates in the most populous province in Canada. Their sales in 2022 are expected to be more than $2 billion and by 2027 they are expected to increase by 12%. Despite their successes, market saturation remains a problem. Some firms expect to fail due to high earnings by the government supplier (Ontario cannabis shop) eat margins.

CBD Industry in Canada

The Canadian hemp market has an unfortunate CBD sector. CBD products are only available through authorized retail cannabis channels. This limits the rates of distribution and purchase. Most CBD sold in Canada has a mark of at least 20%. Most LPs do not focus on developing CBD products. There is very little variety on Canadian store shelves. In response, Canadian companies began collaborating with American companies. The idea is to prepare for us legislation It would open up the entire North American cannabis market.

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“The battle is turning out for the better,” says Bethany Gomez. Industrial hemp continues to dominate the Canadian hemp market. Senior LPs are turning away from value-priced products and focusing on premium flowers.

2021 has been a tough year for many of the big LPs. Revenue stagnated while smaller artisanal producers grew their sales. “Big-sized companies can’t be any bigger,” says Brightfield Group Managing Director, Bethany Gomez. “There is a lot of competition from the troubled brands that are beginning to shape the face of the industry. Today’s cannabis market does not look what most people thought it would look like on the eve of legalization.”

However, as artisanal brands continue to rise, Canada’s most distributed brands are still the ones with base price offerings. “This is a very price sensitive market, and producers need to be able to offer quality products at a price that people will achieve,” says Bethany.