Canada Braces for Second Round of Cannabis Product Legalizations
Within the first quarter of legalization, 5.3 million or 18% of Canadian ages 15 years and older reported using cannabis, according to Statistics Canada. Following legalization, Canada reported a large spike in active users, as a year prior to legalization, just 14% of Canadian of Canadian reported using the plant. During the recent first quarter, approximately 646,000 of the users reported trying cannabis for the first time compared to 327,000 the same period a year ago. Predominantly, the rise is largely due to male users between the ages of 45 and 64, who primarily use cannabis for its therapeutic benefits to treat ailments such as chronic pain, cancer, Alzheimer’s, Parkinson’s, and epilepsy. Based on gender, a significantly larger amount of males used cannabis compared to females. It was estimated that 22.3% of Canadian males used cannabis, while only 12.7% females turned to the plant. Statistics Canada also reported that 29.5% of Canadians ages 15 to 24 years old used cannabis in the first quarter. Similarly, approximately 28.7% of Canadians ages 25 to 34-year-olds also used cannabis during the quarter. Overall, the number of active users has drastically increased over the past year, but it is important to note that the market is still continuing to mature. And despite having legalized cannabis entirely, the Canadian federal government still heavily monitors the market. As a result, many businesses have faced legal barriers, which have in turn negatively impacted their operations. Nonetheless, as the Canadian cannabis market continues to develop and expand, the industry is positioned to become a global driving force. Furthermore, with the second wave of legalization coming later in 2019, the market is expected to flourish even more going forward. According to data compiled by Verified Market Research, the global marijuana market was valued at USD 42.20 Billion in 2016. By 2025, the market is expected to reach USD 466.81 Billion while registering a CAGR of 35.3% from 2018 to 2025. BevCanna Enterprises Inc. (CSE: BEV), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), New Age Beverages Corporation (NASDAQ: NBEV), The Alkaline Water Company Inc. (NASDAQ: WTER) (TSX-V: WTER), Emerald Health Therapeutics, Inc. (OTC: EMHTF) (TSX-V: EMH)