Cannabis has been legal in Canada for almost a year now, and the industry is shaking up everything from the pharmaceutical market to the food industry. In this article, we’ll explore how the cannabis industry is changing Canadian business and what this means for you as an individual. We’ll also take a look at some of the myths about cannabis that you may have heard and dispel them. So whether you’re looking to invest in or start a cannabis business, read on to learn more about what this emerging industry has in store for you.
The Cannabis Industry is on the Rise
Since cannabis was legalized in Canada in October 2018, the industry has seen an influx of new players. This includes both licensed producers (LPs) and unauthorized growers. The LP space is seeing a high amount of investment, with companies such as Aurora Cannabis (TSX:ACB) and CannTrust Holdings Inc. (TSX:CTST) becoming some of the largest marijuana stocks in the country.
Meanwhile, unauthorized growers are still prevalent, but are starting to see a decrease in sales as more LPs enter the market. This is likely due to the higher prices that LPs are able to command for their product. The average price for dry cannabis products has increased by 43% since October 2018, according to data from Statistics Canada.
Overall, the cannabis industry is growing quickly and there is room for even more companies to enter the market. This is especially true given that there are currently no limits on how many marijuana companies can be established in Canada.
The Benefits of Cannabis
Cannabis has many benefits, both medically and economically. Medical cannabis is currently legal in Canada, and there are many benefits to using it. For example, cannabis can help treat a wide range of medical conditions, including chronic pain, anxiety, and depression. Additionally, cannabis can help reduce the symptoms of certain medical conditions such as cancer and epilepsy.
The economic benefits of cannabis are also significant. The Canadian government estimates that the recreational and medical cannabis industries will be worth CAD $8 billion by 2026. This growth is due to the increasing demand for cannabis products across Canada and abroad. In addition to this, the legalization of cannabis has created new jobs in the industry. For example, companies that produce dried flower products have seen a surge in business demand since legalization.
There are many reasons to consider using cannabis for medicinal or economic purposes. If you’re looking for information on how to get started using cannabis for medicinal purposes, check out our blog article titled “How To Use Cannabis For Medical Purposes: A Step-By-Step Guide”.
The Threat of Marijuana Legalization
The cannabis industry is shaking up Canadian business. cannabis
Since marijuana became legal in Canada on October 17, 2018, businesses have been scrambling to adapt to the new reality. Cannabis companies are now facing the same regulations as any other business, from health and safety to taxes.
This has presented a major challenge for startups. Many of them are still getting their feet wet, and haven’t had time to build the robust infrastructure required to succeed in this new market.
Some experts predict that the cannabis industry will be worth over $22 billion by 2025. While this number is still quite small when compared to other industries, it’s growing rapidly and shows no signs of slowing down.
This growth presents another risk for companies: if regulators decide that cannabis should be regulated like alcohol, it could mean big losses for those who don’t adapt quickly enough.
How to Start a Cannabis Business
Cannabis businesses are booming in Canada, thanks to the country’s liberal cannabis laws. There are now over 150 licensed producers of cannabis, and the industry is expected to grow by 25% annually for the next few years.
To get started in the cannabis industry, you’ll need to get licensed. Applications can be filed online or through a government agency. Once you’ve been approved, you’ll need to decide what type of business you want to operate: cultivation, production, distribution or retail.
Cannabis is still a federally illegal substance in Canada, so you’ll need to decide whether you want to run your business as a licensed LP or an unlicensed producer (UP). Licensed producers must follow strict guidelines and regulations set by Health Canada. UPs are not subject to these rules, but they must comply with local laws and regulations.
If you’re looking to open a retail store, make sure you have enough money saved up because licenses cost between $5,000 and $150,000. You’ll also need access to adequate space – about 900 square feet – and enough money for security deposits and start-up costs.
The cannabis industry is growing rapidly in Canada, but it’s still evolving. Make sure you do your research before starting a business in this rapidly-changing field!
Regulations for the Cannabis Industry
The cannabis industry is shaking up Canadian business. The prohibition on cannabis has been a decades-long barrier to market entry for businesses, and the legalization of cannabis across Canada in October 2018 has created an influx of new players into the market.
The federally regulated Canadian Cannabis Industry Association (CCIA) was founded in January 2019 as an advocate for the industry and provides resources to businesses looking to get involved in the cannabis sector. CCIA membership includes producers, processors, distributors, retailers, laboratories, and other associated businesses.
To become a licensed producer under the Cannabis Act, applicants must undergo a security assessment and meet other requirements such as having a minimum amount of capital invested and having proven experience growing hemp. There are currently just over 100 licensed producers in Canada.
Retailers are required to adhere to certain regulations set by the government including requiring customers to show identification and age verification before buying products containing cannabis. There are also restrictions on where marijuana products can be sold, with some provinces allowing only legal dispensaries while others have allowed for standalone recreational stores that sell both marijuana and alcohol.
Despite these restrictions, the number of retail stores has been increasing rapidly as consumers look for more options than they had before legalization. The CCIA expects this trend to continue as Canadians shift from using illicit drugs to legal alternatives such as cannabis.
Conclusion
The cannabis industry is shaking up Canadian business and it’s only going to continue to grow. With so many people turning to cannabis for medicinal purposes, as well as for recreational use, the cannabis market is expected to be worth an estimated C$22 billion by 2028. And that’s not all – another report predicts that the cannabis industry will create more than 250,000 jobs in Canada by 2020. If you’re looking to get ahead in this growing field, now is a good time to start learning about all of the opportunities available.
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