Canada’s Billion-Dollar Cannabis Industry
A new report on Canada’s billion-dollar cannabis industry reveals the cannabis industry has added $43.5 billion since cannabis was legalized in 2018. Despite the slow opening of Ontario’s retail cannabis market, that province is responsible for $13.3 billion.
“In the span of three years, the Canadian cannabis sector has found its footing and emerged as a thriving new source of economic growth, creating and supporting tens of thousands of jobs in communities countrywide,” the report said.
Most of the GDP addition comes from wages. The industry created 151,000 jobs representing $25.2 billion in labour income. The research also estimates that the industry has generated $15.1 billion in Canadian tax revenues and $3 billion for Ontario. Consumer purchases generated $2.9 billion in sales and excise taxes Canada-wide.
Further, Canada’s billion-dollar cannabis industry adds about $1.09 to Canada’s GDP and $1.02 to Ontario’s from legal purchases for every dollar spent.
“As the sector grows and matures, realizing the return on its significant capital investments to date, we should expect it to make an increasingly strong and positive impact on national and provincial economies.”
Deloitte Canada and the Ontario Cannabis Store (OCS) co-released the report on February 1, 2022.
Not All is Rosy in Canada’s Billion-Dollar Cannabis Industry – LPC
However, the report points out the not all is rosy in Canada’s billion-dollar cannabis industry. Diversity remains an issue.
“Before legalization in October 2018, nearly all the 45 federally licensed cannabis producers were run by Caucasian men, some of whom had prior experience in the cannabis ‘grey market,”‘ the report said. “The situation hasn’t changed much in the years since legalization.”
The report cited a 2020 study from the Centre on Drug Policy Evaluation and the University of Toronto. It showed that based on responses from 700 executives and directors at 222 companies found 72 per cent were Caucasian men, 12 per cent were Caucasian women, 14 per cent were racialized men and two per cent were racialized women.
Since then, there are signs that the Canada’s billion-dollar cannabis industry is trying to open up more for BIPOC cannabis producers. First Nations-run cannabis stores are opening up. And, in January 2022, British Columbia’s provincial government launched the BC Indigenous Cannabis Product (BCICP) marketing program to promote Indigenous-produced cannabis. These are small steps and there is definitely a long way to go. Hopefully it’s a sign that things are finally moving in the right direction.
Perhaps the part missing from the Deloitte/OCS report is the fact that Canada’s billion-dollar cannabis industry is disrupting the illegal cannabis market. That means a safer cannabis supply for all Canadians, both in terms of quality and reduced crime.
Read the Full CP Article on the CTV News Website
ADD YOUR STORY HERE
Do you have a business in Canada’s legal cannabis market? Are you a craft cannabis producer or own a chain or independent cannabis retail store? Let’s tell your story here! A news article and your approved listing page make great ways to connect your brand with a qualified audience looking for what you are offering. Learn more about submitting your article to LPC.
