Cannabis News
5 Years After Legalization, Canada Hits CA$5 Billion in Recreational Marijuana Sales (And That is Just the Legal Side)
Published
9 months agoon
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Canadian Cannabis Sales Hit CA$5 Billion in Just 5 Years Post Legalization
If you remember, the first piece of legal rercreational cannabis sold in Canada took place at 12:01:01AM on October 17th, 2018 in Newfoundland, Canada and then CEO of Canopy Growth, Bruce Linton, sold the first order at the Tweed store in Newfoundland. Cannabis.net was there to record the historic first recreational sale as it went down live!
Fast forward almost 5 years, and Canada is selling a whooping $5 billion CA a year, and that is just on the legal and reportable side!
According to retail sales figures revealed by the government on Thursday, recreational cannabis sales in Canada reached a value of 5.07 billion Canadian dollars ($3.8 billion) in 2023, indicating a 12.2% growth from the previous year.
This year-over-year growth pattern shows that the Canadian cannabis industry is maturing more than five years after adult-use cannabis was legalized in October 2018, which is reflected in the sector’s slower pace of growth.
Customers initially had better access to a greater variety of goods from unlicensed vendors, but these advantages have steadily diminished as Canada has added additional product categories and enhanced accessibility to authorized dispensaries.
As Poulos pointed out in an interview, there is still one area in which the black market has an advantage despite these developments, namely with regard to edibles’ strength.
Canada limits the amount of THC in cannabis edibles to 10 mg per packet in order to protect public health.
Rise of Pre-rolls and Stabilization of Prices
Pre-rolled joints are becoming increasingly popular in Canada, according to data analyst Mitchell Laferla of Headset, a cannabis business analytics company located in Seattle. This trend is highlighted by the changing cannabis market landscape of customer preferences into 2023.
Laferla’s analysis reveals a significant surge in pre-roll sales, capturing 31.4% of total sales in 2023, representing a notable 19% increase from the previous year. This surge brings pre-rolls nearly on par with flower sales, which stood at 35.2% of the market share, indicating a shifting trend in consumer consumption habits.
An intriguing development within the pre-roll category is the introduction of the “connoisseur/infused” segment, featuring joints fortified with cannabis concentrates. This segment has notably contributed to the remarkable growth observed in Canada’s cannabis markets, appealing to a diverse range of consumers seeking enhanced experiences.
Although the cost of cannabis products decreased overall in 2023 in a number of product categories, the price compression rate stabilised compared to the year before. Pre-roll costs, in particular, were remarkably stable throughout the course of the year, supported by strong demand in the category, indicating that customers continued to be interested in this specific product type.
Insights into Monthly Sales
Statistics Canada has released retail sales data for December, which sheds light on the dynamics of monthly cannabis sales in the country and provides useful insights into consumption trends and market volatility.
Legal adult-use cannabis sales increased 3.6% year on year in December to CA$441.2 million. This increase suggests that customers continue to seek legal cannabis goods, which contributes to the industry’s overall development trajectory.
Furthermore, December experienced a significant month-over-month gain of 8.2% compared to November 2023, reversing the falling trend that began in August, when sales peaked at CA$467 million. This increase in sales reflects a revived customer interest or seasonal variables impacting purchase patterns.
Regional differences are noticeable, even if the general sales trend seems to be improving. The most populated province in Canada, Ontario, topped the month-over-month growth with a significant 19.3% increase, indicating strong demand. However reductions of 5.2% and 12.6%, respectively, were recorded in British Columbia and Quebec, indicating differences in consumer choices and market dynamics between the two provinces.
The cannabis sector needs reliable statistics to assess market performance and make well-informed choices. This is demonstrated by the updated November sales figures, which were downwardly adjusted from the previously reported CA$ 412.1 million to CA$ 407.9 million.
Ongoing Challenges in the Industry
Sales have increased year over year, but there are still major obstacles standing in the way of the Canadian cannabis industry’s expansion and stability.
The burden of high excise taxes, which provide a significant challenge to licensed producers and retailers and have an influence on their competitiveness and profitability in the market, is one of the main concerns expressed by industry insiders.
Furthermore, the ongoing existence of the black market continues to be a major barrier, undermining legitimate companies and impeding attempts to completely shift customers to legal channels.
The parliamentary study of legalization, which is scheduled for release in the spring, is another item that is a source of great expectation. The conclusion of this assessment and its consequences for stakeholders remain unpredictable, even if it may lead to regulatory measures that may benefit the sector.
Notwithstanding these difficulties, there is continuous consolidation in the market, with several companies going through acquisitions or closing. The market’s competitive dynamics are further shaped by the fact that government-owned cannabis businesses frequently outperform their commercial competitors.
Anticipated Growth Strategies
As the Canadian cannabis business advances, players are proactively preparing to overcome obstacles and capitalize on the potential for future growth. Forecasts predict that cannabis sales might increase by roughly 10% in the next year, driven by a variety of reasons like as the continuous migration of customers toward legal channels and the growth of approved cannabis retail stores in previously underserved areas.
Companies in the sector are concentrating on improving customer experiences and broadening their product offerings in order to maintain this development trajectory. Businesses want to stay competitive in the ever-changing cannabis industry by reaching out to new market groups and offering goods that are creative and responsive to changing customer tastes.
Long-term success will depend not just on diversifying the product line but also on removing regulatory obstacles and creating an atmosphere that encourages creativity. The Canadian cannabis market will expand sustainably if proactive steps are taken to encourage research and development efforts and streamline laws. These actions will also create an innovative culture within the business, adding to its resilience.
Bottom Line
The Canadian cannabis industry’s robust growth in 2023 underscores its resilience and potential for further expansion. Despite facing challenges such as high taxes and competition from the illicit market, the industry continues to adapt, innovate, and thrive. With forecasts predicting continued growth and stakeholders actively pursuing strategies to overcome obstacles and capitalize on opportunities, the future of the Canadian cannabis market looks promising. As regulatory frameworks evolve and consumer preferences shift, proactive measures aimed at addressing industry challenges and fostering innovation will be essential for driving sustainable growth and solidifying Canada’s position as a global leader in the cannabis sector.
CANADA MAKES HISTORY WITH THE FIRST LEGAL CANNABIS SOLD, READ ON…
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November 14, 2024By
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In a recent interview, former New Jersey Governor Chris Christie made headlines by asserting that President-elect Donald Trump will pursue significant reforms in federal policies regarding marijuana and cryptocurrency. As the nation grapples with evolving attitudes toward cannabis and the burgeoning digital currency market, Christie’s predictions have ignited discussions about the potential implications of such changes on both industries. This article delves into Christie’s insights, the current state of marijuana and cryptocurrency regulations, and the broader implications of these anticipated reforms.
The Current Landscape of Marijuana Legislation
Federal vs. State Laws
Marijuana remains classified as a Schedule I substance under the Controlled Substances Act (CSA), which places it in the same category as heroin and LSD. This classification has created a complex legal landscape where states have moved to legalize cannabis for medical and recreational use, while federal law continues to impose strict prohibitions. As of now, over 30 states have legalized marijuana in some form, leading to a burgeoning industry that generates billions in revenue.
Challenges Faced by the Cannabis Industry
Despite its legality in many states, the cannabis industry faces significant hurdles due to federal restrictions. These challenges include:
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Banking Access: Many banks are hesitant to work with cannabis businesses due to fear of federal repercussions, forcing these businesses to operate largely in cash.
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Taxation Issues: The IRS enforces Section 280E of the tax code, which prohibits businesses engaged in illegal activities from deducting normal business expenses, leading to disproportionately high tax burdens for cannabis companies.
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Interstate Commerce: The lack of federal legalization prevents cannabis businesses from operating across state lines, limiting their growth potential.
Chris Christie’s Perspective on Marijuana Reform
Christie, a former presidential candidate known for his tough stance on drugs during his tenure as governor, has evolved his views on marijuana over the years. In his recent statements, he emphasized that Trump is likely to pursue descheduling cannabis, which would remove it from the Schedule I classification. This move would not only provide clarity for businesses operating in legal markets but also open avenues for banking and investment.
Christie highlighted that descheduling would allow for a more regulated market where safety standards could be established, thus protecting consumers. He believes that this approach aligns with a growing consensus among Americans who support legalization and recognize the potential benefits of cannabis use for both medical and recreational purposes.
The Future of Cryptocurrency Regulation = The Rise of Cryptocurrencies
Cryptocurrencies have surged in popularity over the past decade, with Bitcoin leading the charge as the first decentralized digital currency. The market has expanded to include thousands of alternative coins (altcoins), each with unique features and use cases. As cryptocurrencies gain traction among investors and consumers alike, regulatory scrutiny has intensified.
Current Regulatory Challenges
The cryptocurrency market faces several regulatory challenges that hinder its growth and adoption:
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Lack of Clarity: Regulatory frameworks vary significantly across states and countries, creating confusion for investors and businesses.
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Fraud and Scams: The rapid growth of cryptocurrencies has led to an increase in fraudulent schemes targeting unsuspecting investors.
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Consumer Protection: Without clear regulations, consumers are often left vulnerable to risks associated with volatile markets.
Christie’s Vision for Crypto Regulation
Christie believes that under Trump’s leadership, there will be an effort to find a “sweet spot” for cryptocurrency regulation balancing innovation with consumer protection. He argues that overly stringent regulations could stifle growth in this emerging sector while too little oversight could expose consumers to significant risks.
In his view, a balanced regulatory framework would include:
1. Clear Definitions: Establishing clear definitions for different types of cryptocurrencies and tokens to differentiate between securities and utility tokens.
2. Consumer Protections: Implementing measures to protect investors from fraud while promoting transparency within the market.
3. Encouraging Innovation: Creating an environment conducive to innovation by allowing startups to thrive without excessive regulatory burdens.
Christie’s insights reflect a growing recognition among policymakers that cryptocurrencies are here to stay and that appropriate regulations are necessary to foster growth while safeguarding consumers.
Implications of Proposed Reforms
Economic Impact
The potential reforms proposed by Christie could have far-reaching economic implications:
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Job Creation: Legalizing marijuana at the federal level could lead to significant job creation within the cannabis industry—from cultivation and production to retail sales.
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Investment Opportunities: Descheduling cannabis would open up investment opportunities for institutional investors who have been hesitant due to federal restrictions.
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Boosting Local Economies: Legal cannabis markets have proven beneficial for local economies through increased tax revenues and job creation.
Similarly, clear regulations around cryptocurrencies could stimulate investment in blockchain technology and related industries, fostering innovation and economic growth.
Social Justice Considerations
Both marijuana legalization and sensible cryptocurrency regulations have social justice implications:
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Addressing Past Injustices: Legalizing marijuana could help rectify past injustices related to drug enforcement policies that disproportionately affected marginalized communities.
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Financial Inclusion: Cryptocurrencies offer opportunities for financial inclusion for those underserved by traditional banking systems, particularly in low-income communities.
Political Landscape
The political landscape surrounding these issues is complex. While there is bipartisan support for marijuana reform among certain lawmakers, challenges remain in overcoming entrenched opposition. Similarly, cryptocurrency regulation has garnered attention from both sides of the aisle but requires collaboration to establish effective frameworks.
Conclusion
Chris Christie’s predictions about President-elect Donald Trump’s approach to federal marijuana descheduling and cryptocurrency regulation suggest a potential shift in U.S. policy that could significantly reshape both industries. As public opinion evolves on these issues, lawmakers have an opportunity to enact meaningful reforms that promote economic growth while ensuring consumer protection. The anticipated changes could foster a more robust cannabis industry that contributes positively to the economy and addresses social justice concerns, while clear regulatory frameworks for cryptocurrencies could encourage innovation and protect consumers in the digital economy. Stakeholders in both sectors are closely watching these developments, eager to see how potential reforms might impact their futures. While the realization of Christie’s predictions remains uncertain, it’s clear that the conversation around marijuana and cryptocurrency regulation is ongoing and far from settled.
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Cannabis News
Webinar Replay: Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em
Published
1 day agoon
November 13, 2024By
admin
On Thursday, November 7th, Vince Sliwoski, Aaron Pelley and Fred Rocafort held a post election discussion “Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em”. Watch the replay!
Key Takeaways from the “Smoke ’em if You’ve Got ’em – 2024 Post Election Cannabis Wrap” Webinar:
- Panelists:
- Vince Sliwoski: Oregon Business lawyer specializing in cannabis and commercial real estate.
- Aaron Pelley: Experienced in cannabis law since Washington’s legalization in 2012.
- Fred Rocafort: Trademark attorney working closely with the cannabis team.
- Election Results Overview:
- Most 2024 cannabis ballot measures did not pass.
- Florida, South Dakota, and North Dakota saw failures.
- Nebraska became the 39th state to legalize cannabis for medical use when it passed two cannabis initiatives, Initiatives 437 and 438.
- Federal and State-Level Developments:
- Medical use is currently legal in 38 states, and 24 states allow recreational use.
- Republican support for marijuana legalization is growing.
- Federal Policy Implications:
- Schedule III Rescheduling: The process to move cannabis to Schedule III is ongoing, which could significantly impact the industry.
- Importance of Federal Appointments: The future of cannabis policy depends heavily on who is appointed to key positions in the administration.
- International and Domestic Trade:
- Schedule III status could ease import/export restrictions on cannabis.
- Unified control of House, Senate, and presidency might expedite legislative progress.
- Economic and Industry Impact:
- Cannabis stocks experienced volatility post-election, reflecting investor uncertainty.
- Federal legalization and banking reforms are crucial for industry stability and growth.
- Future Outlook:
- The potential for federal rescheduling remains strong, with hearings scheduled for early 2025.
- State-level initiatives and regulatory developments will continue to shape the industry.
“How Long Does One Puff of Weed Stay in Your System?”… This topic can be difficult to answer since it is dependent on elements such as the size of the hit and what constitutes a “one hit.” If you take a large bong pull then cough, it might linger in your system for 5-7 days. A moderate dose from a joint can last 3-5 days, whereas a few hits from a vaporizer may last 1-3 days.
The length of time that marijuana stays in the body varies based on a number of factors, including metabolism, THC levels, frequency of use, and hydration.
Delta-9-tetrahydrocannabinol, or THC, is the primary psychoactive component of cannabis. THC and its metabolites, which remain in your body long after the effects have subsided, are detected by drug tests.
Since these metabolites are fat-soluble, they cling to bodily fat molecules. They could thus take a while to fully pass through your system, particularly if your body fat percentage is higher.
THC is absorbed by tissues and organs (including the brain, heart, and fat) and converted by the liver into chemicals such as 11-hydroxy-THC and carboxy-THC. Cannabis is eliminated in feces at a rate of around 65%, while urine accounts for 20%. The leftover amount might be kept within the body.
THC deposited in bodily tissues ultimately re-enters the circulation and is processed by the liver. For frequent users, THC accumulates in fatty tissues quicker than it can be removed, thus it may be detectable in drug tests for days or weeks following consumption.
The detection time varies according to the amount and frequency of cannabis usage. Higher dosages and regular usage result in longer detection times.
The type of drug test also affects detection windows. Blood and saliva tests typically detect cannabis metabolites for shorter periods, while urine and hair samples can reveal use for weeks or even months. In some cases, hair tests have detected cannabis use over 90 days after consumption.
Detection Windows for Various Cannabis Drug Tests
Urine Tests
Among all drug tests, urine testing is the most commonly used method for screening for drug use in an individual.
Detection times vary, but a 2017 review suggests the following windows for cannabis in urine after last use:
– Single-use (e.g., one joint): up to 3 days
– Moderate use (around 4 times a week): 5–7 days
– Chronic use (daily): 10–15 days
– Chronic heavy use (multiple times daily): over 30 days
Blood Tests
Blood tests generally detect recent cannabis use, typically within 2–12 hours after consumption. However, in cases of heavy use, cannabis has been detected up to 30 days later. Chronic heavy use can extend the detection period in the bloodstream.
Saliva Tests
THC can enter saliva through secondhand cannabis smoke, but THC metabolites are only present if you’ve personally smoked or ingested cannabis.
Saliva testing has a short detection window and can sometimes identify cannabis use on the same day. A 2020 review found that THC was detectable in the saliva of frequent users for up to 72 hours after use, and it may remain in saliva longer than in blood following recent use.
In areas where cannabis is illegal, saliva testing is often used for roadside screenings.
Hair Tests
Hair follicle tests can detect cannabis use for up to 90 days. After use, cannabinoids reach the hair follicles through small blood vessels and from sebum and sweat surrounding the hair.
Hair grows at approximately 0.5 inches per month, so a 1.5-inch segment of hair close to the scalp can reveal cannabis use over the past three months.
Factors Affecting THC and Metabolite Retention
The length of time THC and its metabolites stay in your system depends on various factors. Some, like body mass index (BMI) and metabolic rate, relate to individual body processing, not the drug itself.
Other factors are specific to cannabis use, including:
– Dosage: How much you consume
– Frequency: How often you use cannabis
– Method of consumption: Smoking, dabbing, edibles, or sublingual
– THC potency: Higher potency can extend detection time
Higher doses and more frequent use generally extend THC retention. Cannabis consumed orally may remain in the system slightly longer than smoked cannabis, and stronger cannabis strains, higher in THC, may also stay detectable for a longer period.
How Quickly Do the Effects of Cannabis Set In?
When smoking cannabis, effects appear almost immediately, while ingested cannabis may take 1–3 hours to peak.
The psychoactive component THC produces a “high” with common effects such as:
– Altered senses, including perception of time
– Mood changes
– Difficulty with thinking and problem-solving
– Impaired memory
Other short-term effects can include:
– Anxiety and confusion
– Decreased coordination
– Dry mouth and eyes
– Nausea or lightheadedness
– Trouble focusing
– Increased appetite
– Rapid heart rate
– Restlessness and sleepiness
In rare cases, high doses may lead to hallucinations, delusions, or acute psychosis.
Regular cannabis use may have additional mental and physical effects. While research is ongoing, cannabis use may increase the risk of:
– Cognitive issues like memory loss
– Cardiovascular problems including heart disease and stroke
– Respiratory illnesses such as bronchitis or lung infections
– Mood disorders like depression and anxiety
Cannabis use during pregnancy can negatively impact fetal growth and development.
Duration of Effects
Short-term effects generally taper off within 1–3 hours, but for chronic users, some long-term effects may last days, weeks, or even months. Certain effects may even be permanent.
Bottom Line
The amount of time that cannabis remains in your system following a single use varies greatly depending on individual characteristics such as body fat, metabolism, frequency of use, and mode of intake. Frequent users may maintain traces of THC for weeks, whereas infrequent users may test positive for as little as a few days. Hair tests can disclose usage for up to 90 days, while blood and saliva tests identify more recent use. Urine tests are the most popular and have varying detection durations. The duration that THC and its metabolites are detectable will ultimately depend on a number of factors, including dose, strength, and individual body chemistry.
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