{"id":201842,"date":"2019-11-28T11:30:37","date_gmt":"2019-11-28T16:30:37","guid":{"rendered":"https:\/\/irpp-policy-options.local\/issues\/cannabis-sales-could-jump-with-edibles-but-industry-should-be-prepared\/"},"modified":"2025-04-14T04:49:22","modified_gmt":"2025-04-14T08:49:22","slug":"cannabis-sales-could-jump-with-edibles-but-industry-should-be-prepared","status":"publish","type":"issues","link":"https:\/\/potestlaunch.irpp.org\/fr\/2019\/11\/cannabis-sales-could-jump-with-edibles-but-industry-should-be-prepared\/","title":{"rendered":"Cannabis sales could jump with edibles, but industry should be prepared"},"content":{"rendered":"<p class=\"p1 dropcap-big\"><span class=\"s1\">Canadian Cannabis 2.0 is here!<\/span><b> <\/b><span class=\"s1\">It\u2019s been over a year since recreational cannabis was legalized for adult use in Canada, and with the edibles, extracts and topicals category recently legalized, the market is shifting into what many envision as a new wave of consumption. How will the introduction of these new products impact the market?<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\"><b>Let\u2019s start with Cannabis 1.0.<\/b><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Canada legalized recreational cannabis in October 2018 with the <a href=\"https:\/\/www.canada.ca\/en\/health-canada\/services\/drugs-medication\/cannabis\/resources\/cannabis-act-what-you-need-to-know.html\"><span class=\"s3\"><i>Cannabis Act<\/i><\/span><\/a>, becoming the first G7 nation to do so. Legalization was met with much fanfare and a very bullish outlook for operators in the space. In the first stage, cannabis consumers got access to dried flower and oils. However, consumer purchases have been limited. <\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Many point to regulations as the reason that financial results for the first year have been sobering, and some highly valued publicly traded companies have seen their stock prices tumble in recent months. Limited product offerings have not been attractive enough to entice all consumers away from the illicit market. Brands have found it difficult to connect with consumers because there are not enough retail outlets in the country and because of the <a href=\"https:\/\/www.canada.ca\/en\/health-canada\/services\/drugs-medication\/cannabis\/laws-regulations\/promotion-prohibitions.html\"><span class=\"s3\"><i>Cannabis Act<\/i>\u2019s heavy restrictions<\/span><\/a> on the promotion of cannabis and cannabis-related products.<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Ontario has 14.5 million people. The province has issued only 75 cannabis <a href=\"https:\/\/mjbizdaily.com\/ontario-holds-second-lottery-to-divvy-up-42-new-recreational-cannabis-stores\/\"><span class=\"s3\">retail licences<\/span><\/a>. Once all locations are actually open, there will be roughly 1 store for every 193,000 people. On the other hand, Alberta currently has the most <a href=\"https:\/\/mjbizdaily.com\/ontario-holds-second-lottery-to-divvy-up-42-new-recreational-cannabis-stores\/\"><span class=\"s3\">retail stores<\/span><\/a> in the country, with 300, which is about 1 store for every 14,500 people. To compare, there are almost 3,000 <a href=\"https:\/\/www150.statcan.gc.ca\/n1\/pub\/13-605-x\/2018001\/article\/54964-eng.htm\"><span class=\"s3\">liquor stores<\/span><\/a> in Canada, with 739 in Ontario and 874 in Alberta. You do the math.<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\"><b>Let\u2019s hear it for Cannabis 2.0.<\/b><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Canada\u2019s second coming of cannabis legalization this fall means <a href=\"https:\/\/www.canada.ca\/en\/health-canada\/services\/drugs-medication\/cannabis\/resources\/regulations-edible-cannabis-extracts-topicals.html\"><span class=\"s3\">a new range of choices<\/span><\/a> for buyers. Retailers will soon be able to stock shelves with:<\/span><\/p>\n<ul class=\"ul1\">\n<li class=\"li4\"><span class=\"s5\">edibles: foods and beverages;<\/span><\/li>\n<li class=\"li4\"><span class=\"s5\">extracts: other ingestible products, like capsules and tinctures; and<\/span><\/li>\n<li class=\"li4\"><span class=\"s5\">topicals: products applied to hair, skin and nails.<\/span><\/li>\n<\/ul>\n<p class=\"p3\"><span class=\"s1\">These new items will give consumers far more options in addition to simply inhaling the plant. Although legislation has been in effect since October 17, actual sales won\u2019t be seen until mid-December, according to Health Canada, because the regulator is requiring a 60-day review period for new products. <\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">In keeping with the objective of mitigating health risks, these new products will have THC content limits imposed by Health Canada. Each edibles package will be restricted to 10 mg of THC, extracts will be limited to 10 mg per capsule or 1,000 mg per package, and topicals will be limited to 1,000 mg per package. Restrictions on advertising these new products have been reiterated, specifically the rule that products should not be \u201cappealing to kids.\u201d Edibles packaging will be child-resistant and plain, and it will include mandatory health warnings.<\/span><\/p>\n<figure id=\"attachment_85255\" aria-describedby=\"caption-attachment-85255\" style=\"width: 624px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/potestlaunch.irpp.org\/wp-content\/uploads\/2025\/04\/shutterstock_1177801054-scaled.jpg\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-85255\" src=\"https:\/\/potestlaunch.irpp.org\/wp-content\/uploads\/2025\/04\/shutterstock_1177801054-scaled.jpg\" alt=\"\" width=\"624\" height=\"416\" \/><\/a><figcaption id=\"caption-attachment-85255\" class=\"wp-caption-text\">Photo: A cannabis smoothie. Shutterstock, by Elvira Koneva.<\/figcaption><\/figure>\n<p class=\"p4\"><span class=\"s7\">Edibles, extracts and topicals are projected to dominate this new environment of legalized cannabis. Deloitte\u2019s <a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/ca\/Documents\/c-and-ip\/ca-en-consumer-nurturing-new-growth-en-aoda-may31.pdf\"><span class=\"s3\"><i>Nurturing New Growth<\/i><\/span><\/a> report states that Canada\u2019s ability to enact federal policy, as opposed to the fragmentation in the US market, and the introduction of new, low-dose products will pull in fresh customers and lead to a market for edibles and other non-flower cannabis worth C$2.7 billion annually. Even with THC limits, packaging requirements, limits on advertising and insufficient retail locations, a<\/span><span class=\"s5\">\u00a0<a href=\"https:\/\/investingnews.com\/daily\/cannabis-investing\/edibles-new-users-canadian-cannabis-market\/\"><span class=\"s3\">study<\/span><\/a>\u00a0from Lift &amp; Co., a cannabis-focused technology and media company, and EY, a global professional services firm, estimates that 1.5 million new customers could be brought into the market now that alternatives to smokable products will be available. This report breaks the population into nonconsumers and consumers, with the consumers further categorized as canna-savvy, canna-casual, canna-curious and the unconvinced. Although many think that the canna-savvy will be the most likely to purchase edibles, the report suggests that the canna-curious \u2014 those who have never used cannabis but are interested \u2014 are actually 20 percent or more of the potential market.<\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">In particular, the next wave of consumers will include those who are inclined to try more familiar formats, like baked goods or teas, instead of combustible products. These people tend to be middle-aged and university-educated, and they are less likely to be frequent consumers of cannabis. Although flower is still overwhelmingly the largest product segment, edibles, extracts and topicals will be coming up. If Canada is anything like the United States, edibles and extracts could form the fastest-growing segment of the cannabis market.<\/span><\/p>\n<figure id=\"attachment_85257\" aria-describedby=\"caption-attachment-85257\" style=\"width: 624px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/potestlaunch.irpp.org\/wp-content\/uploads\/2025\/04\/shutterstock_1492246823-scaled.jpg\"><img decoding=\"async\" class=\"wp-image-85257\" src=\"https:\/\/potestlaunch.irpp.org\/wp-content\/uploads\/2025\/04\/shutterstock_1492246823-scaled.jpg\" alt=\"\" width=\"624\" height=\"416\" \/><\/a><figcaption id=\"caption-attachment-85257\" class=\"wp-caption-text\">Photo: Cannabis cream. Shutterstock, by IRA_EVVA.<\/figcaption><\/figure>\n<p class=\"p3\"><span class=\"s1\"><b>With all this excitement, what could possibly go wrong for producers? <\/b><\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Well, as it turns out, a lot. <\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">First, there\u2019s risk of tighter regulations. As we can see from the US market, regulators are increasingly concerned about the dosages of edibles and the possible health impacts of mixing cannabinoids into digestible products. <\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Second, competition. Large consumer packaged goods companies, like Unilever, Pepsi Co. and Mondelez, were not that interested in selling flower or oil for smoking. But they are already highly skilled in creating and distributing products that consumers eat, drink or apply topically. Canadian producers will have rivals competing for a share of the new edibles and topicals market. <\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Third, taxes. The US experience has shown that layers of taxes at various levels can impact a consumer\u2019s decision about where to buy cannabis. The same could happen in Canada, between the goods and services tax, social responsibility tax and provincial sales tax, to name a few that are added to the price for consumers at retail. Making the product legal is one thing, but making its price attractive enough to pull people away from the illegal market is another. <\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Fourth, consumer safety concerns. As the <a href=\"https:\/\/www.cdc.gov\/tobacco\/basic_information\/e-cigarettes\/severe-lung-disease.html\"><span class=\"s3\">vaping crisis<\/span><\/a> has recently shown, unpredictable dosing and toxins in products have led consumers to question what exactly is in all these cannabis and cannabis-related products, in what quantities, and how those ingredients are absorbed into the body.<\/span><\/p>\n<p class=\"p3 dropcap\"><span class=\"s12\">S<\/span><span class=\"s1\">o, Canadian producers face some challenges, but not all hope is lost. As they venture into this new world of different product formats and exciting market developments, it\u2019s important to reflect on lessons of the past and take into account what the expansion of legalization could mean for consumers and companies alike. <\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Industries don\u2019t develop overnight \u2014 they take years. There will surely be delays, miscalculations and even the loss of customers who are dissatisfied with products in Cannabis 2.0, and that\u2019s okay. The goal should be to create products that manufacturers can produce and test consistently, that consumers like and trust and that regulators understand. <\/span><\/p>\n<p class=\"p3\"><span class=\"s1\">Canada has the unique opportunity to lead the way not only in effective federal cannabis policy, but in innovation and economic gains through new business opportunities, increased tax revenue and the reduction of cannabis-related crime and incarceration rates. If only more countries would follow Canada\u2019s lead.<\/span><\/p>\n<p><strong>This article is part of the\u00a0<\/strong><a href=\"https:\/\/potestlaunch.irpp.org\/fr\/magazines\/november-2019\/naissance-dune-industrie-lan-1-de-la-legalisation-du-cannabis\/\"><span class=\"s1\"><b>The Making of a Cannabis Industry: Year One<\/b><\/span><\/a><span class=\"s1\"><b>\u00a0<\/b><\/span><strong>special feature.<\/strong><\/p>\n<p><span class=\"image-caption\">Photo:\u00a0<span class=\"s1\">Cannabis matcha tea latte. Shutterstock, by\u00a0<a href=\"https:\/\/www.shutterstock.com\/g\/oleksandra+naumenko\" data-track=\"click.assetDetails.contributorSelected\">Oleksandra Naumenko<\/a><\/span><\/span><\/p>\n<hr \/>\n<p class=\"p1\"><span class=\"s1\"><i>Do you have something to say about the article you just read? Be part of the\u00a0<\/i>Policy Options<i>\u00a0discussion, and send in your own submission.\u00a0Here is a\u00a0<\/i><a href=\"https:\/\/potestlaunch.irpp.org\/article-submission\/\"><span class=\"s2\"><i>link<\/i><\/span><\/a><i>\u00a0on how to do it. |\u00a0Souhaitez-vous r\u00e9agir \u00e0 cet article ? Joignez-vous aux d\u00e9bats d\u2019<\/i>Options politiques\u00a0<i>et soumettez-nous votre texte en suivant ces\u00a0<\/i><a href=\"https:\/\/potestlaunch.irpp.org\/fr\/article-submission\/\"><span class=\"s2\"><i>directives<\/i><\/span><\/a><i>.<\/i><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canadian Cannabis 2.0 is here! It\u2019s been over a year since recreational cannabis was legalized for adult use in Canada, and with the edibles, extracts and topicals category recently legalized, the market is shifting into what many envision as a new wave of consumption. How will the introduction of these new products impact the market? [&hellip;]<\/p>\n","protected":false},"featured_media":85259,"template":"","meta":{"_acf_changed":false,"content-type":"","ep_exclude_from_search":false},"categories":[9362,9358,9372],"tags":[8451],"article-status":[],"irpp-category":[4243,4229],"section":[],"irpp-tag":[6966,7088],"class_list":["post-201842","issues","type-issues","status-publish","has-post-thumbnail","hentry","category-economie","category-politique","category-recent-stories-fr","tag-cannabis-fr","irpp-category-economy","irpp-category-politics","irpp-tag-cannabis"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Cannabis sales could jump with edibles, but industry should be prepared<\/title>\n<meta name=\"description\" content=\"Edibles, extracts and topicals could bring in millions of consumers, many of them \u2018canna-curious,\u2019 but Canadian producers will face challenges.\" \/>\n<meta name=\"robots\" content=\"index, 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