Canada’s market for alternative cannabis products, such as edibles and topicals, could be worth about $2.7 billion a year, according to a study by consulting firm Deloitte outlined by Global News. The firm estimates edibles will drive the market — to the tune of $1.6 billion a year.
Deloitte suggests cannabis-infused drinks will comprise $529 million per year with tinctures, topicals, concentrates, and capsules representing $400 million per year in sales.
Edibles, topicals, and concentrates are currently not permitted under the nation’s legal cannabis regulations; however, regulators in the state are crafting rules for the products, eyeing an October 17 rollout. The government has proposed basing the tax rate of edibles and extracts on THC content.
Recently, a Dalhousie University study found that interest in edibles has dropped post-legalization, with 36 percent of survey respondents saying they were interested in trying edible products – down from the 46 percent pre-legalization.
“The introduction of cannabis-infused edibles will clearly threaten the alcohol industry as consumers are using the product for similar usage occasions.” — Jennifer Lee, Retail & Consumer Analytics Practice Leader for Deloitte, via Global News
Get daily cannabis business news updates. Subscribe