If the Canadian Industry is estimated at $5B – there is no money to be made for new entrants.
If this were true, there would be no new companies in any industry. What is true is that the top handful of licensed producers control the majority of the medical market’s production and revenue. What is also true is that there are barriers to entry in effort, time. and cost.
Newer producers are not burdened with spending hundreds of thousands of dollars or more on vaults that are no longer required. If outdoor growing is legalized, the cost of production is significantly less and outdoor grow appears ideally suited for derivative products (edibles, beverages, oils, etc).
The $5B estimate is on the low side of the forecasted range and will only grow over time. Alcohol sales where cannabis has been legalized recreationally has fallen significantly. And what is missing from these numbers is that the ancillary industry is estimated potentially at over $16B at the onset. We already know that there is a 700,000kg shortfall of supply expected in the first year.
The statement is false – plain and simple.
New ancillary companies are appearing all of the time such as tattoo companies using hemp in different forms. This new industry in the tattoo segment may reach $1.6B.
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