4 Market Trends To Look For Canna-Business In Canada

Cannabis Business

Canada’s cannabis market is already scouring sky-high growth. Thanks to the pandemic, the sales for recreational marijuana topped an all-time high in 2020.

Reports suggest that the Canadian cannabis market is surpassing its expected maturity levels. As a result, a significant shift in consumer engagement is also witnessed.

Over the 2 years since marijuana has been legalized in Canada, product usage and demographic profiles have shifted considerably.

Notably, the producers and retailers are also taking note of these changes. And likewise, they are making perspective changes to what items they should offer.

Here’s a look at some of these prospective trends visible this year for cannabis businesses in Canada.

Note: The insights shared in this article were compiled in a July 2021 report. Some of the facts and figures might have changed since then.

Demographic Shift to Old Age

When recreational cannabis was legalized back in 2018, it was expected that most sales would come from the younger demographic. The older Canadians were typically assumed to be a Canna-Curious group.

However, recent studies reveal contrasting facts.

The average consumer age has shifted to older generations over the past year.

A quarter of marijuana users are under 30 years of age, 3% lower than observed a year ago.

In contrast, the majority of users are older males, aged above 30 years, than females.

Consumers Are Demanding High THC

Reports suggest 28% of “THC-Dominant Consumers” consume weed multiple times a day. The number has increased by 3% over the previous quarter.

Notably, a staggering 48% of consumers smoked or consumed marijuana at least once a day.

Cannabis consumers in Canada prefer their products with highly potent THC, measuring up to 35 milligrams of cannabinoids.

Evidently, available edibles online Canada, or any other products with high THC, for that matter, is increasing in demand. And we are likely to see this trend going further upwards.

Fewer Newbies Are Trying Cannabis Now

As promising as the overall growth in the legal cannabis trade, there is a lurking threat on the sidelines.

Recent studies reveal fewer newbies trying or consuming cannabis.

It may be an indication that the total consumer market in Canada for cannabis may soon plateau.

According to a report, only 25% of Canadian consumers who used cannabis consume dried flowers. A considerable portion (34%) of cannabis consumers is now preferring edibles.

These numbers are down from 35% and 43% in the previous quarter, respectively.

Consumers Are Preferring Legal Marijuana

Consumers all around the country are moving away from illicit marijuana trades, thanks to the increasing number of legal retail options available to the users.

About 25% of consumers in Ontario now obtain their weed from informal sources, and 34% say they get it from their friends.

That’s down from 38.4% and 48.2% in the previous quarter, respectively.

Evidently, more consumers are now preferring legally controlled weed for consumption over illicit traders. 

The Bottomline

The overall Canadian consumer market for cannabis looks quite promising. However, consumer plateauing is something that producers and retailers will have to tackle in a few months down the line.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.