Canadian edibles, topicals market worth $2.7B; ramp up over 3-5 years: Deloitte

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The Canadian market for next-generation cannabis products is worth an estimated $2.7 billion annually, with edibles contributing more than half, according to a new report from Deloitte.

This spending once the final edible pot regulations roll out in the coming months is expected to be on top of the roughly $6-billion estimated domestic market for recreational and medical cannabis, the consultancy said Monday.

"When we legalize in October again for edibles, we are in a world where the formats and the assortment is much broader," she said. "The use cases are much broader." The federal government wrapped up its consultation on the draft edible rules in February, and has said the regulations must be brought into force no later than Oct. 17, 2019.

The global market for alternative cannabis products is expected to nearly double over the next five years, the consultancy added. Legal pot retailers, both government and privately owned, have been contending with a shortage of cannabis since legalization last October, but have said the situation has improved in recent months.

While this presents a growth opportunity for companies readying themselves for the next wave of the green rush, it may come at the expense of sales in more established industries.

 

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