Legal marijuana could spark a $4 billion industry in Canada

Legalizing recreational marijuana in Canada could spark an industry worth more than $4 billion.That's the asse...

Posted: Jun 7, 2018 6:50 PM
Updated: Jun 7, 2018 6:50 PM

Legalizing recreational marijuana in Canada could spark an industry worth more than $4 billion.

That's the assessment of Deloitte, which estimates in a new report that a legal cannabis industry in Canada would generate recreational sales of up to $4.3 billion in its first year.

Legal cannabis could soon be a reality in Canada. The Senate is expected to vote on Bill C-45, a measure that would legalize the recreational use of marijuana for those over the age of 18, as early as Thursday.

Under the legislation, adults would be permitted to purchase up to 30 grams from distributors that have been licensed by the federal government.

Some health care professionals in the country have said they fear the consequences of legal marijuana. But Prime Minister Justin Trudeau has been supportive of the measure, arguing that it would make it harder for young people to access the drug.

"We are very much focused on the control and legalization of marijuana, because the current system is not working," Trudeau said in May.

"The decisions and the ways we have chosen to move forward on this issue are based on months if not years of consultations with experts ... looking at the best way to ensure that we are eliminating the criminal elements from the sale of marijuana," he added.

Related: The U.S. legal marijuana industry is booming

If the legislation becomes law, Canada would be the first G7 country to legalize the drug.

Estimates of the industry's potential size vary. Canadian Imperial Bank of Commerce estimates the legal market could approach 6.5 billion Canadian dollars ($5 billion) by 2020, while New Frontier Data projects the market will reach 9.2 billion Canadian dollars ($7 billion) by 2025.

Deloitte said that total cannabis spend could surge by as much as 58%, partly because users will be prepared to pay a premium for legal access to the drug.

Regular marijuana consumers will increase purchases by up to 22% under the new law, the consultancy estimated.

In terms of tax, Canadian Finance Minister Bill Morneau laid out plans in his 2018 budget for recreational marijuana to be taxed at $1 per gram or 10% of the total purchase, whichever is higher.

Experts expect alcohol sales to decline as some consumers turn to legal weed.

"Given that sales of cannabis are likely to cut into those of beer, spirits, wine, and even tobacco, it's important that governments ascertain the ultimate impact of legalization on so-called sin tax revenues," Deloitte said in its report.

Nine US states and the District of Columbia now allow for recreational marijuana use, and 30 allow for medical use.

The emerging US industry took in nearly $9 billion in sales in 2017, according BDS Analytics, which tracks the cannabis industry. Sales are equivalent to the entire snack bar industry, or to annual revenue from Pampers diapers.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 51079

Reported Deaths: 2756
CountyConfirmedDeaths
Marion12019693
Lake5588248
Elkhart353959
Allen2939134
St. Joseph210669
Hamilton1691101
Cass16449
Hendricks1454100
Johnson1340118
Porter82638
Tippecanoe7709
Vanderburgh7276
Clark69544
Madison67464
LaPorte61628
Howard59858
Bartholomew59745
Kosciusko5754
Marshall5449
Noble51328
LaGrange4849
Boone48244
Jackson4783
Delaware47152
Hancock46736
Shelby45425
Floyd40644
Morgan34231
Monroe34028
Grant31826
Dubois3046
Henry30018
Montgomery29720
Clinton2903
White27410
Dearborn25823
Decatur25632
Lawrence25225
Vigo2528
Warrick25029
Harrison21722
Greene19432
Miami1932
Jennings17912
Putnam1738
DeKalb1694
Scott1649
Wayne1546
Daviess15017
Perry14710
Orange13723
Steuben1362
Jasper1352
Ripley1307
Franklin1278
Gibson1202
Wabash1162
Carroll1142
Fayette1067
Whitley1066
Starke1043
Newton10010
Huntington942
Jefferson862
Wells821
Randolph794
Fulton731
Knox710
Jay700
Washington681
Pulaski661
Clay645
Rush613
Posey570
Spencer541
Owen521
Benton510
Sullivan501
Adams491
Brown431
Blackford402
Fountain352
Crawford330
Switzerland320
Tipton321
Parke270
Martin260
Ohio230
Vermillion200
Warren151
Union140
Pike110
Unassigned0193

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 64214

Reported Deaths: 3036
CountyConfirmedDeaths
Franklin11724445
Cuyahoga8979393
Hamilton6781207
Lucas2952305
Marion274539
Montgomery244035
Summit2327209
Pickaway222241
Mahoning1928239
Butler182147
Columbiana137860
Stark1214114
Lorain112069
Trumbull104578
Warren97725
Clark80010
Delaware69815
Fairfield66717
Tuscarawas60410
Lake58923
Medina58232
Belmont56922
Licking56812
Miami50631
Portage49259
Wood48851
Clermont4737
Ashtabula44744
Geauga42543
Wayne37253
Richland3715
Allen35641
Greene3439
Mercer29910
Erie27122
Holmes2595
Darke25626
Huron2402
Madison2169
Ottawa17324
Sandusky16015
Washington14620
Ross1443
Coshocton1423
Athens1391
Crawford1385
Putnam13715
Hardin12312
Morrow1201
Auglaize1094
Jefferson1092
Muskingum1001
Union931
Preble901
Monroe8917
Hancock861
Lawrence830
Guernsey823
Clinton811
Hocking809
Williams762
Shelby744
Logan711
Ashland672
Carroll673
Fulton670
Scioto670
Wyandot635
Brown611
Fayette550
Defiance533
Knox531
Champaign511
Highland501
Van Wert471
Perry441
Seneca412
Henry330
Paulding300
Jackson280
Pike280
Adams261
Vinton232
Gallia201
Noble140
Harrison131
Meigs130
Morgan110
Unassigned00
Fort Wayne
Clear
66° wxIcon
Hi: 75° Lo: 59°
Feels Like: 66°
Angola
Clear
64° wxIcon
Hi: 78° Lo: 57°
Feels Like: 64°
Huntington
Clear
69° wxIcon
Hi: 76° Lo: 58°
Feels Like: 69°
Decatur
Clear
68° wxIcon
Hi: 73° Lo: 59°
Feels Like: 68°
Van Wert
Clear
68° wxIcon
Hi: 75° Lo: 59°
Feels Like: 68°
Dry start to the work week
WFFT Radar
WFFT Temperatures
WFFT National

Community Events