Assuming adult use of recreational cannabis is legalized in Canada in mid-2018, cannabis sales are expected to reach $4.6B by 2019 and $7.4B by 2024. The export market could represent an additional $0.5B to $1.5B at minimum, with potential for much greater global growth on the basis of Canada’s strong international cannabis brand. Canadian licensed producers will need to cultivate an aggregate of 610,000kg of cannabis to meet conservative projects of domestic and export demand in 2019. Last year’s total estimated production of 31,000kg represents just 5% of this total.
Based on the projected rate of approved applications for Licensed Producers by Health Canada, LP’s will only be able to supply 5% of the total demand for cannabis by the time the legal recreational market takes effect in 2018. Based on the projections, it is believed that Health Canada will streamline the application process to meet the demands. This will necessitate that security consultants become more involved in the compliance process and conduct more security assessments and attestations to expedite the licensing process.
Source: PI Financial (23-02-2017)