How much will legalization be worth? Now we know who will be buying weed, and how much they’ll be paying for it.
After legalization this summer, Canada will be one of the biggest weed consumers in the world. How much will the Canadian market be worth was the million (or billion) dollar question—until now. Financial giant Deloitte just released an official report on cannabis in the country’s market. In it, they shared that cannabis sales in Canada are expected to pass $7 billion in 2019.
Canadians Will Spend Over $7 Billion on Weed
In the report titled A Society in Transition, An Industry Ready to Bloom, Deloitte surveyed Canadians in early 2018 to predict future marijuana consumption. The report estimates that cannabis sales in Canada are expected to Pass $7 billion in 2019 alone. This includes medical, legal recreational, and illegal sales.
It also predicts that legal recreational sales will make up $4.34 billion, the majority of overall sales. According to surveys, Canadians will buy legal marijuana as long as it’s no more than 10 percent more than what’s currently available illegally.
Deloitte calculates the Canadian weed market value is worth between $1.34–2.75 billion. In 2019, they expect it to increase to $1.81–4.34 billion.
The Average Consumer Is Changing
The report describes the current weed smoker as “risk taker,” which skews younger (18-34 years old). They expect that legalization will attract 35-54 year-olds, who will consume, on average, less than once a month.
This doesn’t mean that they’re new to the herb. 3/4 have smoked, eaten or vaped in the past, and almost half have in the past few years.
After legalization, those who rarely smoke weed and those who consume it often are expected to increase their intake. Not only that, but the rare smokers will spend 65 percent more on marijuana than they do now.
The culture around marijuana is changing. Middle-aged consumers, especially those with college or graduate school educations, will become typical. These will be people with stable jobs, families and more of an inclination to follow the law.
Canadian Spending On Legal Weed Will Depend On Access
There are some major hurdles to overcome post-legalization. The lower the priceof legal recreational marijuana and the better the supply and access, the more Canadians will spend.
Most cannabis consumers will buy from dispensaries. This means that location, accessible information and a good (and visible) supply are key. Of Canadians surveyed, one third would buy marijuana online. Delivery services have the advantage of privacy, but the threat of shared data.
Most Canadians Will Be Buying Their Weed Legally
Overall, most people see the benefits of legalization–and are willing to pay for it. The average Canadian is open to paying 10 percent more, though it varies per province. They see legalization as a way to guarantee quality and offer better and more varied products.
And if there are enough dispensaries, and if weed is cheap and plentiful enough, this could mean over $7 billion in weed sales in 2019.