With a reputation as a more rural and conservative province, it’s been a surprise to the industry to see how rapidly the cannabis market is evolving and growing in Alberta.
Just the Facts
MJBizDaily prepared a report on the recreational markets for cannabis across the provinces in 2018. This report includes the sales of oil, seeds, plants and dried cannabis, with the edible products not on the market at the time of the report. Alberta, like the other western provinces, opted to move to a private sector approach to retailers. The eastern provinces elected to use a government-run approach to retail, which limited retailers while also maintaining a constant market.
In the western provinces, and more predominantly in Alberta, the number of retailers skyrocketed, far outpacing the expected results. At the end of the first year of recreational cannabis legalization, the report indicates Alberta will have 250 expected retailers across the province, while Saskatchewan, in the second highest position, will have just 51.
The results of this abundance of retailers in Alberta is not only convenient for recreational users to access retailers like Fire & Flower, but it also serves to drive competition for quality cannabis as well as serving as a constant force in keeping the market price down for consumers.
The Difference in the Alberta Approach
There are several different reasons why Alberta had such a phenomenal response to the industry. A big factor in the rapid growth of the industry was the provincial government's willingness to allow retail sales of recreational cannabis to be managed by entrepreneurs in the industry. The government continues to manage all online sales.
This allowed these entrepreneurs to work closely with the cultivators, providing branded cannabis that’s easy for consumers to identify. This creates a brand following, which drives specific markets and serves to create demand. In turn, this provides better profits to cultivators and retailers, which allows for the expansion of sales.
Alberta has also been more future-focused with clear indications that options such as cannabis cafés and even lounges that allow the use of cannabis are seriously being considered. These types of businesses will continue to add to the market, which will cycle through to retailers and benefit cultivators as demand continues to rise.
According to the Parliamentary Budget Office, the anticipated use of cannabis in the province will be 77,000 kilograms in 2019 and will meet or exceed 88,000 kilograms by 2021. This is partially driven by the younger population in the province, but with the highest MMJ (medical marijuana) use, this is anticipated to continue to trend upwards for years to come.
As a mark of just how well the industry is developing, our team at Cannabis Hemp & Expo has a line-up this year featuring 2 expos in the spring alone! The kick-off event will be held in Calgary at the BMO Center on March 9 and 10, 2019 and features an Industry Day on March 8th.
This Expo is designed to bring all cannabis industry sectors together including medical clinics, software startups, dispensaries, licensed producers and even cannabis growing and producing equipment manufacturers to develop a full picture of the potential for growth and innovation within the cannabis space.
Join our team to kick off our season in Calgary and visit over 100+ vendors and industry leaders for this 2 day expo experience.
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