Everyone knew weed would be big in Canada, but who thought it would get so big so fast? According to a report published by leading Canadian bank CIBC, the marijuana market will reach unprecedented heights by 2020. Just a couple of years after legalization, Canadians could be spending more on weed than alcohol. Here’s a closer look at the post-legalization boom.
Canadian Legalization Is Just A Few Months Away
According to the federal government’s new timeline, legalization should be in full force by early September. In the meantime, everyone from provincial governments to marijuana producers to large banks is preparing for the advent of the new cannabis market.
Setting aside the complications of dispensary permitting and local laws, many are wondering: How much will this all be worth? CIBC sought to answer that question in its report “Cannabis: Almost Showtime.”
The Legal Marijuana Market Will Be Worth Billions
On Monday, the Canadian bank released a comprehensive report on the Canadian marijuana industry. It predicts that the legal marijuana market will be valued around $6.5 billion by 2020.
This is partially due to increased weed smoking even prior to legalization. Between 1985 and 2015, consumption in Canada doubled. Though weed won’t be legally available for a few months, cannabis has become increasingly culturally acceptable over the years.
The report cites a Statistics Canada figure stating that “In 2017, about 4.9 million Canadians aged 15 to 64 spent an estimated $5.7 billion on cannabis for medical and non-medical.” The jump to $6.5 billion is reasonable when considering the increased accessibility and acceptance that accompany legalization. Marijuana sales will mirror the alcohol industry’s growth post-prohibition.
It’s important to note that marijuana use is most popular amongst the young and middle-aged.