We will show you how to leverage innovative opportunities and niche products to serve a wide variety of different consumers.
At September 30, 2016, there were almost 100,000 patients registered to access medical marijuana, with an estimated sales value of around $150mm annually, excluding oils and extracts. Sales are growing at 20 – 30% each quarter, and the market is expected to reach $3bn by 2024, according to a recent Dundee report.
Even more promising is the prospect of a recreational market, with base consumption of marijuana estimated at $5bn – $9bn, according to Deloitte. Other analyses support this, including a study by the Parliamentary Budgetary Office (also concluded a $5bn market), and bench marking consumption rates from states such as Colorado, which shows an average of 23 grams per person annually. A market of this size in Canada would require between 650 thousand and 1 million kilograms of annual production, or 5 mm – 8mm square feet of production space.
When ancillary products and services are added in, the recreational market potential jumps to over $20bn annually. Perhaps the most intriguing of ancillaries is infused product manufacturers, which includes edible oils, topical products, edibles, and inhalation extracts. With such a large, emerging market, there will be plenty of opportunities for innovation and niche products to serve a wide variety of different consumers, which will also promote a diverse set of suppliers. In Washington State, ~14% of production is used for infused products manufacturing, which can retail for double the price per equivalent gram of marijuana content.