One year after the legalization of recreational marijuana in Canada, the country is preparing for “Cannabis 2.0.”
The second phase of legalization will bring three new classes of cannabis to dispensary shelves: edibles, concentrates and topicals.
Cannabis 2.0 Sales Expectations: Edibles Should Dominate
It would be an understatement to say that sales expectations for Cannabis 2.0 are huge.
according to CNN Business. ” data-reactid=”22″>The Brightfield Group estimates Canada’s cannabis industry will reach $3.7 billion by the end of 2020, which is more than double the $1.6 billion it reached in 2019, according to CNN Business.
Sales of the newly legalized cannabis products, such as edibles, vapes and topicals, are projected to hit $900 million in sales, Brightfield Group managing director Bethany Gomez told CNN.
Deloitte projected in June that the Canadian edibles market will be worth a minimum of $1.6 billion annually, with cannabis-infused beverages adding $529 million more.” data-reactid=”24″>Another forecast from Deloitte projected in June that the Canadian edibles market will be worth a minimum of $1.6 billion annually, with cannabis-infused beverages adding $529 million more.
Deloitte’s survey results said 59% of likely cannabis users intend to use cannabis-infused edibles, which indicates they could be the most profitable category among the newly legalized products. ” data-reactid=”25″>What’s more, Deloitte’s survey results said 59% of likely cannabis users intend to use cannabis-infused edibles, which indicates they could be the most profitable category among the newly legalized products.
The ongoing vaping crisis may affect the sales of vape products in Canada, despite Health Canada’s efforts to rigorously regulate the market.
The country’s improved regulations now limit ingredients in vaping products, forbidding sweeteners, sweetening agents and sugars, CNN Business said.
“It will be prohibited for cannabis extracts, including cannabis vaping products, to contain anything that may cause injury to the health of the user when the cannabis product is used as intended or in a reasonably foreseeable way,” Tammy Jarbeau, a Health Canada spokesperson, told the network.
Another interesting question: will Cannabis 2.0 make any meaningful impact on the illicit market sales?
black market has continued to dominate.” data-reactid=”30″>While it was expected that recreational legalization would diminish the illegal cannabis market in Canada, the latest sales analysis showed that didn’t happen. Due to the huge price gap between the legal and illegal markets, the black market has continued to dominate.
Cannabis 2.0 Announcements
Cannabis 2.0 products should hit shelves in mid-December. Health Canada has started accepting applications from licensed cannabis companies to sell the products.
Some companies have already obtained license amendments, while others have announced their plans to do so:
ACB) (TSX: ACB) announced Oct. 16 it will roll out Canadian vape, concentrate and edible products.” data-reactid=”34″>Aurora Cannabis (NYSE: ACB) (TSX: ACB) announced Oct. 16 it will roll out Canadian vape, concentrate and edible products.
“In December 2019, we will be launching over 15 new SKUs related to our new vape technologies.”
The company is planning on building on its partnership with Constellation Brands by launching cannabis-infused beverages.
The company also aims to produce vape cartridges with already-signed sales agreements, and said it will start the production of its new softgel capsule line once necessary approvals are obtained.
On Oct. 16 the company announced its subsidiary MediPharm Labs Inc. has signed a private label cannabis concentrate supply agreement with Olli Brands Inc., a producer of cannabis-infused edibles and teas.
ACB) on Canadian edibles.
THCBF) (CSE: THC) said Oct. 24 it obtained an amendment to its Health Canada license that allows it to sell cannabis extracts, topicals and edibles.
The company also recently disclosed entering into a non-binding letter of intent dated Oct. 15 to collaborate with Capna Intellectual, Inc. to bring its cannabis vape brand Bloom to Canada.
“The long-awaited Health Canada approval we just received is pivotal, as it allows us to participate in the cannabis oils market today and sets the stage for our presence in the edibles, extracts and topicals markets, pending their legalization and regulation anticipated to occur this week,” CEO Meni Morim said in a statement.
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