Edibles and Drinkables Poised to Lead Canada's Cannabis Industry
Edibles and drinkables are gaining popularity in Canada's cannabis market, potentially bridging the revenue gap with alcohol sales, according to Delta 9 CEO John Arbuthnot
Key Points
- 1Canadian cannabis sales capture 50% of black market share
- 2Delta 9 CEO highlights growth in edibles and drinkables
- 3Cannabis retail locations increased from 42 to 71 since 2019
- 4Cannabis revenue remains low compared to alcohol sales
- 5Non-smoking cannabis products appeal to new demographics
The cannabis industry in Canada has experienced a remarkable transformation over the past few years, evolving from a market characterized by supply shortages to one teeming with retail locations. According to Delta 9 CEO John Arbuthnot, cannabis sales have successfully captured approximately 50% of the black market, a significant achievement aligned with the original goals of legalization. As of the latest records, the number of cannabis stores has surged from 42 in 2019 to 71, showcasing a robust expansion in the retail sector
Despite the industry's growth, cannabis revenue still lags behind alcohol sales, with finance minister Scott Fielding reporting cannabis revenue at around $14 million. In contrast, annual dividends from liquor and lotteries, including alcohol sales, reach approximately $650 million. However, new product lines such as edibles and drinkables are gaining traction and could potentially close this revenue gap. Arbuthnot highlights the rising popularity of cannabis gummies, which are attracting a demographic that previously shied away from cannabis products
Edibles and drinkables are emerging as promising sectors within the cannabis market, offering a calorie-free and hangover-free alternative to traditional smoking methods. Arbuthnot believes these products represent a compelling value proposition compared to alcoholic beverages, potentially setting the stage for the future of cannabis consumption in Canada. As more consumers explore these non-smoking options, the industry could see a shift in consumer preferences, further driving growth and innovation