Will Canada Dominate Global Marijuana Market?
As most everyone knows, Canada’s upper house of Parliament approved the revised cannabis bill in a 52-29 vote last month, paving the way for a fully legal cannabis market within six to 10 weeks. As the only developed nation able to legally grow and export marijuana legally, Canada is well positioned to dominate in a market that could be worth as much as $200 billion.
The Canadian market expects to add billions of dollars in annual revenue from the legalization of pot. Growers will have to find a way to move what could be well in excess of 1 million kilograms of oversupply. So, they are expected to do this by focusing on the more than two dozen (and growing) foreign markets where medical marijuana has been legalized. These foreign countries, like Germany, Australia and New Zealand, are depending on countries like Canada to supply their medical weed industries.
As medical marijuana is legalized around the world, Canadian producers are readying to export it. Seven Canadian producers have been granted licenses to export the crop. By the end of March these companies are projected to have sent 528 kilograms of dried cannabis flower and over 30,000 ounces of oil overseas.
As Canada moves to finalize the legalization of recreational weed this month, the number of licensed growers has already swelled to 84 and production is skyrocketing. Research into new growing techniques and improved strains is increasing exponentially. This has placed Canada in a unique role as nations seek out safe and legal supplies of medical cannabis.
In contrast, American producers are shut out of the global market because of the federal prohibition on cannabis. That leaves Canada room to pursue the international market and the potential riches that go with it.