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Canada’s Marijuana Demand to Reach 2.2 Million Pounds in 2018

Canada

Canada will legalize recreational marijuana use in July 2018 and Health Canada, the country’s department responsible for public health, has estimated that the recreational marijuana demand in Canada will be approximately 2.2 million pounds for the remainder of the year.

Canada does expect to supply marijuana to its residents as well as export to international markets, The Motley Fool reports. The rapid growth is also expected to  increase stock prices and the price-per-gram of dry flower.

Officials are expected to vote on the Cannabis Act on June 7, which would allow for the final regulatory framework to start taking shape for Canada’s legal recreational marijuana industry.

Following legalization, it is expected that Canada’s legal market could generate billions of dollars of revenue annually.

The country’s top cultivators, as a whole, are on-pace to produce over 3.6 million pounds annually. With all of the country’s cultivators put together, it is estimated that they could produce about 5 million pounds by the end of 2020.

It is also estimated that by 2020, extract and oil production may increase due to doctor preference. While patients tend to prefer dry flower, the oils and extracts can be sold at a higher price, thus increasing profits for cultivators and manufacturers. It is also expected that CBD oil export will increase, which could lead more cultivators to shift in that direction.

Photo: flickr (goo.gl /hUXrBF)