Latest study reveals that Canada is set to legalise cannabis next year – sparking a multi-billion dollar industry that will overtake alcohol sales.
The decision could kick-start the economy and eclipse the combined sales of beer, wine and spirits, according to the report from consulting firm Deloitte.
It could soon be worth $22.6 billion (£13.8 billion) and presents a ‘bold new landscape for Canadian businesses and governments alike’.
Mark Whitmore, vice-chair of Deloitte, told The Star: ‘There hasn’t been anything like this — and granted it wasn’t legislated — but you think of the dot-com flurry, it has that kind of feel to it.’
The report, titled Recreational Marijuana: Insights and Opportunities, concludes that Prime Minister Justin Trudeau’s legalisation of marijuana copuld provide the economy with a shot in the arm.
Deloitte estimated that 600,000kg of weed will need to be produced every year to satisfy the market.
A survey of 5,000 Canadians, including 1,000 recreational cannabis users, calculated that the base retail market would be worth between $4.9 billion (£3 billion) to $8.7 billion (£5.3 billion) annually.
The ancillary market — growers, infused product makers, testing labs, and security — would increase that to between $12.7 billion (£7.8 billion) to $22.6 billion (£13.8 billion).
The survey found that 40% favoured legalisation, 36% opposed it, and 24% were undecided.
The report said: ‘This will make it challenging to create a broadly accepted regulatory environment.’
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