“Canada is about to become the first G20 nation in the world to fully legalize cannabis and the implications are enormous,” says New Frontier Data founder & CEO Giadha Aguirre de Carcer. “New Frontier Data projects the domestic Canadian cannabis market will reach (CAD)$9.2 billion by 2025. Combined, the Canadian medical and adult-use markets will rival that of Californiawhich boasts the 6th largest overall economy internationally. Canadian usage rates in the medical market are higher on average than in the U.S. When the adult-use Canadian market opens the combined domestic and international opportunities will increase dramatically and create new momentum around the world."
These findings are part of New Frontier Data’s The Canada Cannabis Report: Industry Outlook 2018. This report examines Canada’s cannabis market, emerging business opportunities, potential risks and both investment and regulatory implications. It also looks at Canada’s cannabis demand, public and private market performance, and critical market forces, dynamics, and trends. As the legal cannabis industry expands globally, the report also looks at international opportunities for Canadian cannabis licensed producers (LPs) and potential impact on both Canada and the emerging regional legal cannabis import and export environment.
Among the key findings from the report:
The total addressable market for annual consumer sales in Canada, i.e., the sum of illicit, medical, and adult-use demand in the country) is estimated to be CAD$8.6 billion in 2018, growing to CAD$9.2 billion by 2025.
The Canadian legal market (domestic only, not including exports) is projected to be CAD$1.7 billion (US$1.3 billion) in 2018, growing to CAD$7.7 billion (US$6.0 billion) by 2025. Between 2018 and 2022, total legal revenue is forecasted to increase CAD$5.2 billion (US$4.1 billion).
Canada is one of a few countries to allow for the importation and exportation of cannabis. Even with the export market still in its infancy, the U.S. is ceding the international market to Canada.