In November 2017, the proposed Cannabis Act was passed by the lower house of the Canadian Parliament and is now with the Senate. It is expected that the law will be fully enacted by the end of summer, 2018, opening up all of Canada to legalized cannabis.
That watershed moment is only a few months away.
Consider that the number of medical marijuana patients has already tripled in the last year from around 100,000 to 300,000 and continues to grow at seven percent month over month.
Right now, licensed producers in Canada only provide about seven percent of the potential recreational demand, serving a medical marijuana patient base of 300,000 people.
With full legalization in place, Deloitte estimates the total economic impact of the industry could be $22.6 billion annually – more than the combined sales of beer, wine and spirits.
Canadians will be able to order pot to their door, allowing for easy consumption on a scale never before imagined. That means demand is expected to spike, big time.
Right now, cannabis producers are in a tight spot. Canada currently has just over 100 licensed producers authorized to produce cannabis and only 40 producers authorized to sell cannabis. They grow about 60,000 kg of pot, a mere 7 percent of the potential demand once pot is legalized this summer.