Without new rules, cannabis market hitting its ceiling: experts

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'If you really do want this industry to sort of succeed ... I do think you can change those promotion rules.'

After a sharp period of growth, legal cannabis sales are levelling off in Ontario, province-by-province sales numbers show.

Ontario, where cannabis retail stores were slower to roll out than elsewhere in the country, saw a similar flattening, but about a year later, in early 2022. The province's monthly cannabis revenues have floated between $140 million and $160 million since March of 2022, with one exception. "I think with no change in regulation, we're probably getting closer in Ontario and probably most of the other provinces," says cannabis industry lawyer Matt Maurer.

Mississauga's decision to allow cannabis stores will cause a one-time uptick in sales when stores open there, he says. "I think that the legal industry hasn't fully managed to convert all the consumers from the illicit market," says cannabis industry consultant Deepak Anand ."I don't think it's realistic that we would in a few short years post-legalization, but certainly, there is that section of the market that still can be captured as well."

 

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