Will Demand Outpace Supply In Canadian Marijuana Market?
Prior to the legalization of recreational cannabis throughout Canada, Health Canada is anticipating the demand for pot to be much higher than original predictions. A report by the government agency utilized a federal survey from 2017, on marijuana use, in attempt to measure just about how much pot adults will consume during first year of legalization.
The calculated amounted came to just under 930,000 kilograms, for both recreational and medicinal use, which is 41% higher than the previous estimate of 655,000 kilograms by the Parliamentary Budget Officer in 2016. If the findings of Health Canada’s new report deem to be true, our neighbor to the north could actually see a shortage in supplies with recreational legalization commencing next week. With expected demand outpacing supply, many investors are watching marijuana stocks this month.
