Cannabis Industry Research: Canada
The Cannabis Act and its regulations lay the framework for legalizing cannabis in Canada. However, the market is strictly regulated, especially cannabidiol (CBD) products. The next section provides full insights into the Canadian CBD products market.
CBD Products Legalization Process
- In Canada, the Cannabis Act and its laws control and regulate CBD products. The regulations apply to CBD derived from both industrial hemp plants and other varieties of cannabis.
- Therefore, in Canada, CBD products are only legal when sold as per the Act and its regulations. The Act and accompanying laws control the possession, production, distribution, and sale of cannabis.
- Health Canada controls the production, distribution, and sale of cannabis, including CBD products for medicinal use. Next, the provinces and territories control the distribution and selling of cannabis, and the location and operations of cannabis stores.
- With the Canadian government strictly controlling cannabis in the country, the geographic impact of the cannabis market is widespread, with more impact felt in a few provinces.
- For instance, Alberta has 56 retail outlets for cannabis, with an originally planned roll out of 250 licenses for retail stores. On the other hand, Saskatchewan has issued 51 licenses.
- From October 2018 to June 2019, the top five cannabis markets in Canada based on sales are Alberta at $123.6 million, Ontario at $121.6 million, Quebec at $119.2 million, Nova Scotia with $47.89 million, and Saskatchewan with $38.24 million.
Provinces That Have Legalized CBD products
- In Canada, all provinces sell CBD products; however, they sell and distribute them under different laws because each province is responsible for its cannabis licensing.
- Recent statistics about the cannabis market in Canada indicate that all provinces and territories registered sales above $1 million. This indicates that all states offer cannabis, which includes CBD products.
- The provinces and territories where one can buy cannabis and CBD products in Canada are Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, Saskatchewan, Yukon, and Northwest Territories.
How Cannabis Legalization Process Affects the Buying and Selling CBD Products
- In Canada, cannabis online sales are controlled by the government in Alberta, British Columbia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
- The roll-out of cannabis regulation across the provinces has been strenuous, often pushing people to purchase their products from the black market, which was the case for Ontario due to a less efficient supply chain and logistics.
- The legalization limits private distribution with only Saskatchewan and Manitoba approving private distribution and online sales models. However, Ontario said it would start allowing private retailers from April 2019.
- Generally, the Canadian government strictly regulates the cannabis market, which has limited opportunities for private players to invest in spaces such as online sales. The stringent regulation implies that buying CBD products is limited to online and retail stores, which are predominantly run by government entities.
A thorough examination of the Canadian government website provided comprehensive information about the legalization process of CBD products in the country. Extensive searches through industry reports published by leading media agencies such as CBC Canada also provided additional insights into the current top markets in the region, to provide an overview of the geographic impact of cannabis in the nation. Other searches through reports published by Forbes featured a breakdown of the licensing across the provinces. Overall, the information presented above provides a detailed overview of the Canadian CBD products market based on insights about how the legalization process is changing and challenging the sector.