There is still a significant amount of unsold cannabis sitting in storage facilities and subsequently, a considerable amount of product being destroyed in Canada. This trend has been in an upward trajectory since 2018. Is this an issue of overproduction, regulatory challenges, financial constraints or are there other factors that come in to play?
WATCH THE FULL online discussion below, where our expert panel explored the challenges, potential solutions, emerging markets and strategies for 2024!
The CANNAtalk panel from this past session offered some very valuable insights into the current state of the Canadian cannabis industry and its global outlook for 2024. Here's a summary of the key points we discussed:
Balancing Supply and Demand: Attendees acknowledged the progress made in achieving a better balance between supply and demand within the Canadian market. However, it was noted that this equilibrium is mostly due to a reduction in domestic overproduction and not necessarily extending to international opportunities, highlighting the need for further exploration in this area.
Impact of US Legislation: Matt Lamers, international editor for MJBiz, provided insights into the complexities of cannabis legalization in the United States and its potential repercussions on Canadian businesses. Despite growing momentum for legalization south of the border, Lamers cautioned against expecting significant US involvement in the global cannabis market in the short-term.
Emerging International Markets: Discussion turned to various international markets, with a focus on countries such as Germany, Spain, Thailand, Poland, Australia, and Israel, where legislative developments are closely monitored for potential market opportunities. Matt emphasized the importance of staying informed about evolving regulations and market dynamics in these regions.
European Market Challenges: European countries with legalized cannabis face unique challenges, including the need for greater education, communication, and support from the medical community. This slower progress compared to North America has impacted product availability, particularly innovative "3.0" products commonly found in Canada and the US, explained Stephen Murphy, Co-Founder and CEO at Prohibition Partners.
Product Trends and Market Adaptation: David Brown, Co-founder of Stratcann Services, highlighted market trends such as oversupply of certain product formats like 3.5gr., 7gr. and 28gr. packaged dry flower. He discussed strategies for differentiation, including exploring alternative packaging sizes and the rising popularity of infused products and pre-rolls. Additionally, the decreasing retail price of extracts and concentrates was noted as a significant market trend.
Imports and Anti-Dumping: The consensus reached underscores the importance of proactive engagement in discussions about cannabis imports. By taking the lead in addressing concerns about anti-dumping in countries like Israel and Australia, Canada can contribute to the stability and growth of the global cannabis industry while reaffirming its commitment to responsible trade practices. Importantly, the potential impact of such imports on Canada's domestic industry for medical purposes is considered to be minimal, further supporting the case for initiating these crucial conversations.
The 1st CANNAtalk of 2024 provided a comprehensive overview of the challenges and opportunities facing the Canadian cannabis industry domestically and in the global context. As the industry continues to evolve, staying informed about international legislative developments and market trends will be crucial for sustained growth and success!
Save the date and join in for our next online session on Thursday, March 21st to discuss “Cannabis 3.0”
