Canada’s cannabis industry contributed C$8.26 billion to the country’s gross domestic product (GDP) in July, according to new data from Statistics Canada published on Tuesday (October 1).
The marijuana sector in the country has been growing steadily from the C$7.02 billion added to Canada’s GDP in October last year, when the drug was first legalized for recreational use.
The legal cannabis industry in the nation has grown an impressive 185 percent in the 10 months since legalization, according to BNN Bloomberg.
The black market hasn’t fared as well, however. The industry for unlicensed cannabis fell almost 22 percent in the same time span, the data shows.
The legal marijuana industry is set to get a boost later this year when edible cannabis products are made available to consumers.
A report from Deloitte released in June states that this next stage of cannabis legalization — dubbed “Cannabis 2.0” — will create a consumer market worth more than C$2.7 billion a year.
Though the sale of edible cannabis products will be made legal by October 17, Health Canada has said that federal license holders will need to provide 60 days’ notice of their intent to sell edible products, meaning consumers won’t be able to get their hands on anything until mid-December at the earliest.
A variety of marijuana producers have declared their intentions to launch a wide array of products, including gummies, chocolates and infused beverages.
Despite a slump in North American cannabis stocks, Canada’s marijuana space has been big business.
In its inaugural TSX30 list, the Toronto Stock Exchange confirmed that some of the top-performing companies in the country over the last three years have been marijuana businesses.
Cannabis heavyweight Canopy Growth (NYSE:CGC,TSX:WEED) came out on top in the first position. Other cannabis players that made the list include Village Farms International (NASDAQ:VFF,TSX:VFF) in the third spot and Aphria (NYSE:APHA,TSX:APHA) in the sixth spot.
Village Farms holds a joint venture partnership for the management of a licensed producer with Emerald Health Therapeutics (TSXV:EMH,OTCQX:EMHTF).
Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT) made it into the top 10 of the list as well, securing the eighth spot.
Industry experts remain bullish on Canadian cannabis despite a shift in investment sentiment towards the US market, particularly to the multi-state operators that exist in the country.
Nawan Butt, associate portfolio manager with Purpose Investments, previously told the Investing News Network there is still a ways to go before Canada’s cannabis market settles.
“Once the big guys start getting it right, you’ll see a lot more efficiency in the Canadian markets, which will lead to a lot more consolidation as well once the industry matures,” Butt said.
Elliot Johnson, chief investment officer with Evolve Funds Group, is also optimistic about Canada, especially when it comes to international expansion from cannabis firms.
“Whether you’re looking at Europe or South America or Australia, you’re seeing Canadian names popping up all the time … I think that global opportunity justifies a lot of the valuation of Canadian companies.”
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.
Pineapple Express Delivery Partners with CannTrust to Offer Same-Day and Next-Day Delivery for estoraTM Medical Cannabis Patients in Ontario
Ensuring estoraTMpatients have seamless access to their high-quality medical cannabis products
World-Class Extractions Inc. (CSE:PUMP)(FRA:WCF)(OTCQB:WCEXF) (the “Company” or “World-Class”) is pleased to announce that its subsidiary Pineapple Express Delivery Inc. (“Pineapple Express Delivery” or “PED”), a leading logistics technology company offering compliant and secure delivery of controlled substances and regulated products, has partnered with CannTrust Inc. to bring same-day and next-day delivery to estoraTM medical cannabis patients in Ontario
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.