PALM BEACH, Florida, July 30, 2019 /PRNewswire
Projections show rapid growth in revenues across all cannabis market segments, including flower and edibles. Research also shows that illicit sales will decrease as the legal markets mature and more retail outlets come online, making it easier to buy and at lower price points. An article in the Marijuana Business Daily said that: “Canada’s direct cannabis market will double to 11 billion Canadian dollars ($8.2 billion) in the next six years, and flower market share will halve as consumption shifts toward non-combustible methods, according to research by Ernst & Young. While the accounting and consulting firm said dried flower currently makes up 84% of sales, it expects that figure to fall to 46% by 2025. The projections are for the legal and illicit markets and do not include ancillary sales.”
The article’s insight on the discussion continued with: “… by 2025, the expectation is “the percentage coming from the illicit (market) would be significantly lower, especially if quality and price of legal product is commensurate with the illicit market and if access continues to improve,” said Duncan Yang, EY Canada’s real estate and cannabis practice senior manager. Extracts, edibles and nonedible derivatives will make the biggest gains, underpinned by Canada’s upcoming regulations for those products later this year.
EY estimates that extracts will grow from the current 10% of the market to 37%, while edibles will rise from the current 5% to 12% by 2025. Active companies in the industry making moves to ready that include: Choom™ Holdings Inc. (OTCQB: CHOOF) (CSE: CHOO), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Fire & Flower Holdings Corp. (OTCPK: FFLWF) (TSX-V: FAF), Green Thumb Industries Inc. (OTCQX: GTBIF) (CSE: GTII), Trulieve Cannabis Corp. (OTCPK: TCNNF) (CSE: TRUL).
The report concluded with “… additional product formats will be catalysts of growth… “Retail and distribution frameworks across Canada have been implemented at a slower pace than anticipated since legalization, diverting many consumers to the illicit market,” wrote the report’s author, Zachary Pendley, cannabis real estate and valuation leader. “However, as the industry matures, access to legal cannabis products increase and higher margin derivatives come online, we expect the Canadian direct cannabis market to grow by over 50% in 2025… Average annual spending per adult consumer for all cannabis products – both recreational and medical – is expected to grow from CA$1,200 this year to CA$1,600.”
Choom™ Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) BREAKING NEWS: Choom™, an emerging adult use cannabis company that has secured one of the largest retail networks in Canada, is pleased to announce the appointment of Corey Gillon as President, effective August 26th, 2019. Gillon joins the company as a seasoned global retail executive to strengthen Choom’s management team as it prepares for rapid growth within the Canadian cannabis retail market. Gillon has a proven track record for delivering year over year revenue growth as a result of executional excellence, leveraging global best practices and customer-focused retail strategies.
“I am excited to lead a growing part of the Choom business,” said Gillon, “particularly during such a dynamic and exciting period. Choom is building an iconic brand and I look forward to stewarding the expansion of the Choom cannabis retail network as it prepares for rapid growth within the Canadian cannabis retail landscape.” https://www.financialnewsmedia.com/news-choo/
