We know that there is a lot happening in Canada’s cannabis sector. Cannabis company stocks are up and down like yo-yos. All you have to do is check BNNBloomberg’s Stock Watchlist to see how much things are in flux.
Analysts believe it will be a bumpy road ahead for cannabis executives this year as the sector as a whole faces a cash crunch amid mounting quarterly losses and wary capital markets. The lack of a strong retail roll-out in year one of cannabis legalization was a big reason the industry didn’t perform as well as it could have in Canada – but not all is lost – it’s a new sector after all, this much is to be expected. Ontario and Alberta are moving ahead with dozens of new stores and Cannabis 2.0 has arrived with products slowly rolling out to an enthusiastic market. There is much to be optimistic about.
The winners will be the ones who can afford to ride out the storm while catching the wave of edibles and alternative products coming with Cannabis 2.0 legalization. The introduction of these new products is creating new opportunities in product mixes, tapping into new cannabis consumers who may not have been comfortable with traditional cannabis consumption.
Deloitte’s Cannabis Survey Insights highlights a number of things to look forward to specifically:
- New consumers, those not currently being tapped by the THC market. In particular, those looking for the health benefits of cannabis, to reduce anxiety and stress and even athletes and sports enthusiasts who are more interested in the medical benefits associated with CBD.
- Mass merchandising in the form of infused beverages like waters, teas, sports drinks and beauty products like lotions and toothpaste.
- The opportunity for companies to build out their brands by embracing Cannabis 2.0 and taking the time to shape consumer preferences for years to come.
All of these offer another route to growth in the Canadian cannabis market and a bright future for cannabis companies.
Hang in there, the storm will calm and the sector will emerge victorious.