Joint venture: The legalization of recreational marijuana has brought revenue to new highs

Over the five years to 2018, the Cannabis Production industry in Canada has transitioned from a single government-sponsored provider of medical cannabis products to a highly competitive industry comprising dozens of private companies. In late 2013, Canada enacted the Marihuana for Medical Purposes Regulations, which expanded access to medical marijuana by enabling Health Canada to issue licences for private companies to cultivate, produce and sell cannabis products to registered patients with medical prescriptions. This policy shift has resulted in surging demand for medical cannabis. As a result, industry revenue is estimated to increase over the five years to more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • The opening of the recreational market is expected to sustain industry revenue growth
  • Canada became one of the first countries to legalize the production and consumption of marijuana for medical purposes
  • Industry revenue growth will decelerate as the explosions of activity following recent policy changes begin to settle down
  • Industry Report - Industry Analysis Chapter

    Over the five years to 2018, the Cannabis Production industry in Canada has experienced several major shifts in industry regulations, as well as broader public perception, sprouting numerous cultivation and processing operations in the process. Historically, the industry has been composed of a small number of independent companies that are licensed by Health Canada to provide medical marijuana to patients with prescriptions. However, this competitive market for medical cannabis products was only formed in 2013. As a result, the past five years have been characterized by a wave of new operators entering this budding market, in addition to significant product innovation. Ultimately, industry revenue is estimated to increase at an annualized rate of 115.3% to $916.6 mi...purchase to read more.

    Additional Insights for the Cannabis Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cannabis Production Industry are

  • Understanding government policies and their implications
  • Development of effective marijuana strains
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Regulation and External competition in the Cannabis Production industry impact industry performance..

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    What's in this report

    What is the Cannabis Production Industry?

    This industry includes all companies licensed by Health Canada to cultivate, produce and sell products containing marijuana for medical and recreational consumption. The value of medical marijuana grown privately and illegal purchases of cannabis products for recreational use are both excluded from this industry.

    Industry Products
  • Dried cannabis
  • Concentrates
  • Capsules/seeds
  • Industry Activities
  • Growing marijuana
  • Retailing marijuana products
  • Processing marijuana into derivatives and consumer products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Regulation
  • External competition
  • Number of adults aged 65 and older
  • Per capita disposable income
  • Total health expenditure

  • Current Performance
  • Cultivating the recreational market
  • Budding market for medical marijuana
  • Extracting demand
  • Chart: Revenue Growth

  • Industry Outlook
  • Legislation and consumer trends
  • Demographics and medical marijuana
  • Table: Cannabis Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cannabis Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Pharmacies & Drug Stores in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Fertilizer Manufacturing in Canada
  • Lighting & Bulb Manufacturing in Canada
  • Major Household Appliance Manufacturing in Canada
  • Pesticide Manufacturing in Canada

  • Products & Services
  • Concentrates
  • Dried cannabis
  • Capsules/seeds
  • Other
  • Chart: Cannabis Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 25 to 44
  • Consumers aged 18 to 24
  • Consumers aged 45 to 64
  • Consumers aged 15 to 17
  • Consumers aged 65 and older
  • Chart: Major Market Segmentation for the Cannabis Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Cannabis Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cannabis Production Industry

  • Industry Globalization
    Aurora Cannabis Inc., Canopy Growth Corporation, Aphria Inc.,
  • Table: Aurora Cannabis Inc. - financial performance
  • Table: Canopy Growth Corporation - financial performance
  • Table: Aphria Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cannabis Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Cannabis Production Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • The plant from which medical marijuana is harvested.
  • Dispensary
  • Designated medical marijuana retail stores.
  • Edibles
  • Edible cannabis products, often in the form of baked goods or candies.
  • Joint
  • A rolled cigarette containing dried marijuana, often hand-rolled by the consumer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cannabis Production market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Cannabis Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Cannabis Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Cannabis Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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