On 17 October 2018, Cannabis and derived products were legalized in Canada. The world watches with bated breath as the implications of this act are unveiled in 2019. Hands down, there is a major scope of development in the free-market with the introduction of cannabis and CBDs.
The most asked question, in regards to cannabis, is – what is CBD? Of course, such products have not yet been lined up in retail stores, owing to the Canadian government’s decision to hold off their introduction for a year. It said it wanted time to build safety regulations around these already-hyper-regulated products so that consumers don’t confuse them with non-cannabis goods. Nonetheless, other products, like gels, lotions and soap, have already been introduced.
But the question remains – What is going to affect the cannabis market in the near future?
Here are 5 trends to watch out for in the Canadian cannabis market in 2019:
- The Type And Price Of Cannabis Products
Price is a driving factor when it comes to cannabis-related product. The new goods will make or break the bank of many producers and retailers. Also, according to a Deloitte survey, the types of products made available at a retailer will be another thing consumers will consider before walking inside the store. It also estimates that 6 out of 10 cannabis-consuming citizens will switch over to cannabis edibles after they hit the market. Chocolate and other baked goods, especially cookies and brownies were the most ‘eagerly-waited for’ products.
Also, the demand for the non-smoked option is significantly less in comparison to the smoked or edible variety. However, only consistent supply, which has been a hiccup lately, can tell exactly what consumers want.
Nevertheless, manufacturers are stocking up on cannabis edibles as they understand how popular food products will become as new users, as well as the seasoned ones, will give them all at least a try.
As of now, the sale of such products is prohibited, but they are a freebie that retailers are happily handing out. Once they hit the market, only time will tell how popular cannabis edibles will become.
- Resolution Of Supply Issues
The supply of cannabis products is facing an ongoing shortage, which should, in theory, change when the government gives a green light to retailers in October 2019. Once the government is able to come up with guidelines and product labelling to regularize the sale and ensure the safety of children and adults from unintended consumption, the products should be out for good. Also, the province of Quebec, which is generally very strict regarding local regulation, can be another holdout. According to Eater, the people of the province might not get a chance at buying cannabis edibles at all.
Cannabidiol (CBD) is a vastly popular cannabinoid that is advertised as a cure-all for all ailments. While there is no scientific proof, it is still being considered the next big thing in the cannabis market. It is a high demand product that can bring home a lot of revenue. It is estimated that the CBD market will burgeon to $22 billion in the next 4 years in the US – this has global implications.
Canada stands to benefit from this the most as it is one of the largest hemp producers in the world.
- Cannabis-propelled tourism
It is a surprise, tag-along trend that might be seen in Canada after cannabis regularization. Already, in cannabis-friendly areas like Vancouver, big retailers have repurposed old buildings into manufacturing plants that also invite educational tours. Thus, many tourists gravitate to these new avenues of weed tourism which offers hikes, massages, fine dining, weddings – everything infused with marijuana. Not only that, there are many cafes and retail stores that offer cannabis-infused items.
That being said, when the relatively free market landscape emerges for cannabis products in the whole nation, it is expected the cannabis-propelled tourism industry will grow even further.
- Introduction Of Cannabis-infused Beverages
Health Canada’s regulations stipulate that alcohol and cannabis are not to be mixed. Yet, alcohol brands like Constellation Brands, the alcoholic beverage giant behind Corona and Modelo, have partnered up with Canada’s largest cannabis producer, Canopy Growth. Even Coca-Cola is looking into CBD-infused drinks in Canada.
While it is already clear that they would not be able to mix alcohol and cannabis for Canadian citizens, they will certainly be able to offer drinks infused with Tetrahydrocannabinol (THC).
As the cannabis industry comes to terms with new-found legalization, only time will tell if the free market is what it is touted to be. Even when not considering the ‘high’ THC cannabis-laced products create, their competition with ordinary products like alcohol and juices seems to be a one-sided battle. With the impending release of CBD-heavy coffee, sparkling waters, and juices, other trends will keep popping up as a cascading effect. Analysts can only wait and watch.