Canadian Cannabis Market Trends – Cannabis News, Lifestyle

“It’s going to be a very interesting year,” said Bethany Gomez, managing director of Brightfield Group. With expected sales of $8.8 billion by 2027, the Canadian cannabis market is on fire. Thanks to consumer demand, major LPs have largely abandoned the “sea of ​​green” monocrop concept and narrowed down to premium flowers. The CBD market suffers from regulatory constraints. But there is an opportunity to gain a foothold in the US. Smaller, artisanal brands, with their deep-rooted distribution networks, still compete with the larger LPs. But things look very different in 2022 than they will in 2020. “We’re seeing a lot of disruptive craft brands emerging,” says Bethany.

In proportion to its population, Alberta surpasses all of Canada.

They rank highest in what is spent per capital on Canadian cannabis products. Alberta’s free market approach means retail licensees face fewer regulatory hurdles. Allowing for more free competition, Alberta expects cannabis sales to exceed $1 billion by 2027.

In contrast, Canadian cannabis continues to underperform in Quebec

Despite its population. Quebec has taken the opposite approach to Albertas. All retail is state-owned and controlled. By restricting competition among entrepreneurs, the government has restricted product choice and effectiveness. Edibles, concentrates, and vapes are illegal. Because of this, many Quebec consumers continue to use the legacy market.

British Columbia is the historic birthplace of Canadian cannabis.

So it’s not surprising that the province expects to overtake Alberta in revenue by 2027. Much of that hinges on BC getting rid of its sales agent. And whether they introduce a direct farm-to-consumer model. Like Alberta, the industry expects sales to grow by over a billion by 2027. British Columbia is also (finally) taking steps to bring the old producers onto the legal market. Confidence in the legacy market is likely the reason provincial sales are so low. In addition, the province has trademarks for consumers. There is BC-Grown, BC-Certified Organic, Indigenous-Grown, among others.

Ontario is becoming the epicenter for Canadian cannabis.

As of early 2022, over 1,500 cannabis retailers operate in Canada’s most populous province. Their 2022 revenue is forecast to exceed $2 billion and is projected to grow 12% through 2027. Despite their successes, market saturation remains a problem. Some companies expect to fail as high markups from the state supplier (Ontario Cannabis Store) eat away at margins.

Canada’s CBD Industry

Given that CBD shows promise in preventing COVID-19 infections, Canada’s CBD regulations put Canadians at risk

The Canadian cannabis market has an unfortunate CBD sector. CBD products are only available through approved cannabis retail channels. This limits its sales and purchase rates. Most CBD sold in Canada has a premium of at least 20%. Most LPs don’t focus on developing CBD products. There is little variety on the shelves of Canadian stores. In response, Canadian companies have partnered with American companies. The idea is to prepare for US legalization, which would open up the entire North American cannabis market.

The LPs

“The fight shifts to premium,” says Bethany Gomez. Craft cannabis continues to dominate the Canadian cannabis market. Big LPs are turning away from budget products and focusing on premium flowers.

2021 was a tough year with a lot of big LPs. Sales stagnated, while smaller craft businesses increased their sales. “The big LPs just can’t get any bigger,” says Bethany Gomez, Managing Director of Brightfield Group. “There is a lot of competition from disruptive brands that are starting to shape the face of the industry. Today’s cannabis market is not what most people thought it would look like on the eve of legalization.”

As craft brands continue to rise, the top selling brands in Canada are still those with core price offerings. “This is a very price-sensitive market,” says Bethany, “and manufacturers need to be able to offer quality products at a price that people are willing to pay.”