Cannabis research firm cuts estimates on Canada pot market to US$5.2B by 2024
The future of Canada’s cannabis industry may not be as rosy as once believed after one research firm cut their estimates for the outlook on the country’s burgeoning pot market.
Cannabis industry research firm BDS Analytics said Canada’s pot market is expected to grow to US$5.2 billion by 2024 up from US$569 million last year. While that growth reflects a relatively strong compound annual growth rate of about 44 per cent over the next five years, it also is shy of BDS’s previous January forecast of the Canadian market of US$5.9 billion by 2022.
“Everybody was somewhat taken aback at how Canada hasn’t exploded the same way it did in Colorado, Oregon, and California,” said Tom Adams, managing director of BDS Analytics, who was a lead author of the report released on Tuesday.
“It’s now a retail product and the medical market may have hid the real numbers for a while. The market changes entirely when you have recreational cannabis and it’s just another consumer product … But Canada’s very cautious approach is likely to limit the revenue growth in the overall market.”