If someone told you three years ago that Canada’s licensed producers in 2018 would produce 10 times what they are making at that time, would you believe them?
According to statistics collected by Statistics Canada, Canadian marijuana producers were putting out just under 10,000 kilograms of medical marijuana in the year 2015.
The data collected over the last three years have shown us the sharp rise of cannabis producers into their multi-billion valuations.
So, let us go through the numbers and see what exactly lead to the rise of Canopy Growth, Aurora Cannabis and other huge companies threatening to become the next kings of the vice industry.
Expansion and investments
Even though the medical marijuana program has been open for applications for a while now, not all companies on the market have been there for so long.
The first table (below) shows us the increase in the output of dried cannabis:
As you may see from the table, the production of dried flower has effectively risen eightfold in 2017 when compared to 2015.
We can only assume that the trend of increasing the output in order to match the needs of both the recreational and medical market will continue at a similar pace in 2018.
Production is also due to the increase in 2018 and 2019 as some of the biggest producers in Canada have announced that they will be expanding their operation to several locations.
In total, licensed producers reported 42,106 clients in 2015 and 135,870 in 2016 while the number of clients for 2017 is not yet confirmed.
The general assumption is that there are around 250,000 medical marijuana users in Canada at this point, although this is only an educated guess.
From the table below you will also notice the astonishing figures that are pointing to even further expansions, which are bound to increase the production.
As you can see, “Structures” take up the first spot with more than half of the money going into new and improved facilities that are able to largely improve the cost per price and bring it down to a decent number.
This will also affect the prices of cannabis in stores, as the sudden influx of high-quality cannabis from several sources could amount to a huge surplus of both medical and recreational cannabis, something that recently happened in Oregon.
To add to all of this, ACMPR is rapidly handing out licenses to most companies interested in becoming a licensed producer and helping the Canadian market grow.
Currently, there are over 100 licensed producers operating or preparing to start with operations in Canada, some of those even having facilities in multiple provinces, and that number isn’t going to go down unless someone starts acquiring companies faster than they get licensed.
*Both tables have been taken from the www.statscan.gc.ca. website and are a part of their proprietorship.