This month marks the first anniversary of Canada’s foray into the realm of legalized adult-use cannabis, which commenced on October 17, 2018.
According to Washington D.C.-based cannabis data and analysis company New Frontier Data, an estimated 1.5 million adults have consumed legal cannabis during Canada’s first year of legalization.
New Frontier Data estimates that the total number of adult cannabis consumers in the country will increase to 7.3 million through 2024.
The demand for legal cannabis in Canada is expected to reach CAD $2.5 billion (USD $1.9 billion) through 2019 with an 18.2 percent compound annual growth rate through 2024 to a total of CAD $5.8 billion (USD $4.42 billion).
Growth in the legal cannabis industry will be driven by a transition of consumers from Canada’s sizeable black market to the legal industry as well as new consumers entering the market, says New Frontier Data.
Usage rates for Canadians 15 years of age and older are expected to increase from 18 percent in 2019 to 25 percent in 2025.
New Frontier Data also says that a lack of performance and profitability from many of the biggest producers listed on the Canadian stock exchanges (TSA, CSE) have been the driving force behind sharp declines in their stock prices.
According to New Frontier Data, exports of medical cannabis products from those producers remain limited in 2019, creating an additional drag on share prices.