Canadian Recreational Cannabis Market Expected to Exceed $4 Billion
With all eyes of the world are on Canada’s experiment with legal recreational weed, the Canadians themselves can’t wait for October, 17th to roll by so that they can roll their marijuana joints without fear or shame. When PM Justin Trudeau announced the date where the recently passed legalization bill to take effect, you could almost hear, and smell, a plume of blue aromatic smoke escaping the lungs of a nation that has been smoking weed on the down-low for years. But while pockets of resistance, especially in Quebec and Chinatown, still try to push back against the recent victory for pot lovers, they won’t have much effect on the growing industry that’s expected to exceed $4 billion in its first year. In his tweet on the subject, Trudeau touched on a sensitive issue that has bothered conservatives for a long time, “It’s been too easy for our kids to get marijuana - and for criminals to reap the profits. Today, we change that. Our plan to legalize & regulate marijuana just passed the Senate".
With the passing of that bill which the PM was referring to, Canadians over the age of 18 can now legally purchase up to 30 grams of marijuana from licensed distributors and with the blessing of the Ottawa government. On Reddit and other social forums, Canadians were celebrating. One user who goes by the name lilmo898 commented, “Fuck yea so glad I live in this amazing Country.” While user Redneck-Midget made it clear what that victory meant, “Proud to be Canadian too! Finally getting shit done.” But grammar and punctuation aside, the mood was that of jubilation all around while their neighbors to the south didn’t hide their feelings either. User boonkdocksaints put it plainly, “America is so boring". Bill C-45 will also allow Cannabis Apparel companies to market themselves without the threat of legal repercussions.
While some health officials were warning of the effects of legalizing recreational marijuana on the young demographic, authorities reiterated PM Trudeau’s position that by making it legal, they were taking cannabis out of the hands of children and dealing a fatal blow to the pot black market. The Prime Minister has often stressed that the rules and regulations being enforced on the cannabis industry were the product of years of research, consultations and hard work. The goal has always been to take out the shady dealers out of the equation and ensure consumers get a quality product that meets the health standards. With Canada being the first G7 nation and the second country in the world after Uruguay to legalize recreational marijuana, it’s going to be a learning experience for the Canadian government.
Booming Industry, Different Estimates
While financial experts agree that the legal marijuana industry would be a huge one from the get-go, they put out different estimates of how big it would be. But with the consumers willing to dig deeper in their pockets to pay for a legal product that is both safe and of higher quality, many projections put the industry size well over $5 billion by 2020. It all hangs on the size of the Canadian appetite for good weed. If sales in the first year increase by 22% and remains steady for the next few years, this nascent industry could hit $7 billion by 2025. And already the government is salivating over the expected tax revenue from marijuana sales. The 2018 budget already includes tax clauses that will charge $1 per gram in taxes or 10% of the total transaction whichever is higher.
But not everyone is excited though. Besides the conservatives, the alcohol industry is not very happy about the new bill. Many in that business fear that sales of alcohol would drop as consumers turn to legal weed which gives a better buzz anyway.