More Canadians Are Utilizing Legal Cannabis
Since cannabis has yet to be federally legalized in the U.S., American investors frequently rely on Canada for their cannabis stock financial investments. The 2 greatest marijuana stocks by market cap– Canopy Growth Corp. and Aurora Marijuana– are Canadian. And numerous other major cannabis companies are headquartered there also.
These companies are global in nature. But they depend on the Canadian market for considerable profits. So that makes it essential for investors to discover whatever they can about cannabis in Canada, consisting of Canadians’ usage habits. That’s what today’s chart is all about.
Statistics Canada carries out a National Marijuana Survey every 3 months determining cannabis use and related habits. In the 2nd quarter of 2019, the company found that about 4.9 million (or 16%) of Canadians aged 15 and older reported utilizing cannabis.
It discovered that roughly the very same number of female and male participants acquired their weed from both legal and illegal sources. But a greater portion of both groups reported getting at least some of their marijuana legally. And 48% of all cannabis consumers reported buying a minimum of some of their weed lawfully (such as from an authorized retailer or online manufacturer) compared with 42% who bought a minimum of some of it illegally. And more women than men reported getting cannabis from pals and household. (Participants could pick more than one choice, so the numbers don’t add up to 100%.)
As a whole, the legal Canadian market got off to a bit of a sluggish start. But things are getting. Adult-use cannabis sales reached a new high in June, going beyond CA$85 million ($63 million). Sales have increased in Ontario, Quebec, Alberta and British Columbia– the most populous provinces in the country.
And legal sales will only grow from here. The Canadian federal government recently revealed policies to allow the sale of cannabis edibles, extracts and topicals starting this fall. That will help unlock a multibillion-dollar market.
It will take some time for Canada’s legal market to dominate its illegal market. But the legal market is making strong gains.
Assistant Managing Editor, Early Investing