- Canadians purchased CAD$54M worth of marijuana in Novermber 2018, the first full month recreational marijuana was legalized
- Canada’s potential market is expected to be larger than CAD$5B annually
- The first G7 member to take the leap, Canada is being closely watched by other G7 countries who are debt burdened and looking for additional revenue streams
The figures are in. Statistics Canada announced that $54M worth of marijuana was purchased from retail stores in the first full month (November 2019) after legalization on October 17, 2018.
Market estimates place Canada’s potential market size between $5.5 billion and $10 billion a year. Canada became the first G7 nation to legalized recreational marijuana with hopes of increased tax revenues, decreased criminal activity and an attempt to curb your consumption.
Analysts are predicting that Statistics Canada’s numbers may understate the initial sales figures due to limited distribution and a supply chain in its infancy. Ontario, the country’s most populous province, is limited to online orders until a batch of 25 stores opens in April. Physical locations is other provinces also saw supply shortages. Other developed nations are closely monitoring Canada’s progress to understand the implications of recreational cannabis and potential tax revenues. With many nations burdened in debt and marijuana becoming less of a taboo, more and more countries may follow Canada’s lead.
Article by: Mick Ross
Mick is currently a full-time investor and formerly a buy-side analyst (2yrs) covering healthcare companies. Before that, he was a salesperson at a bulge-bracket firm, based in Dallas, Texas. Mick blogs to clarify and synthesize his investment thought process and to elicit feedback; additionally he likes to connect with other investors and swap ideas.