In an online survey of 1,519 randomly selected Canadian adults we conducted in December 2018, one thing is clear from the results: Canadians — to the tune of 38% — are eager to try new consumption methods of cannabis as they become legally available.
One standout product category that has piqued interest nationwide is edibles, with 30% of Canadians expressing their interest in trying them when they to become legal. That’s expected to happen in April of this year.
Edibles are popular in the U.S. too, where in many legal states edibles are readily available and evolving into a major market force. In California alone, the edibles market is poised to reach $5.1 billion in 2019 and can already account for 25% to 60% of a dispensary’s profits, reports Cannabis Investing News.
However, it is important to note that regulatory landscapes differ from region to region, and ultimately impact the potential of emerging markets. For Canadian operators and investors looking to tap into this consumer segment, this can create a barrier that will need to be taken into account, and will play a key role in how consumers will get their hands on edibles later this year.
Draft regulations from Health Canada are set to cap THC content at 10 milligrams per package of edibles, compared to U.S. states such as California, Colorado and Washington where edibles can contain up to 100 milligrams of THC per package. Low THC content regulations would make it harder for Canadian companies to compete with the black market and increase packaging costs, which would means higher prices on the shelf.
While a new market can represent an exciting investment opportunity, it’s important to keep one adage in mind before diving in: The devil is in the details. Cannabis exists within a complex network of regulations, so due diligence and thorough research will always be crucial.
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