When Canada federally legalized the cannabis plant for both medical and recreational use in the fall of 2018, they put in a waiting period before allowing the sales of edibles. Now, that wait is coming to an end.
Edible products get the green light on October 17th, although each product will need to undergo an approval and procurement process that can last 60 to 90 days. If all goes according to plan, edibles should be on shelves by the end of the year.
That’s good news considering that the projected market for these more accessible, “user-friendly” edibles is huge. According to Headset Insights data, edibles comprise between 9% and 13% of the U.S. adult use cannabis sales, with beverages making up an additional 1%-2%.
Edibles have slightly outpaced market growth in most states with Nevada showing the biggest increases in market share over last year growing from 9.7% of the market in Q3 2018 to over 10.3% in Q3 2019.
Smaller packages, bigger price tags
A major difference in Canada edibles will be the package size. In the U.S. 100mg packages are the most common package size. But Canada plans to limit the package size of edibles to 10mg or less per package - essentially single servings.
That could lead to a package of edibles costing less than those in the U.S., but the price per mg of THC will likely be higher.
In the third quarter of 2019, the package price in the U.S. for edibles average between $13 and $23, with wide variances between states. All states saw price pressure at the start of the legalized market with prices falling quickly in the first few months before stabilizing.
Canada has seen a similar trend in its flower prices with average item price of flower falling 4% from August to September this year.
Health Canada has warned that the supply of edibles will be limited to begin with, but will likely increase over time as regulators get a better sense of usage and safety.
As the market evolves, Headset will be there to update you on the popularity of edibles and their average sales prices. To learn more about Edibles trends in the US, check our Cannabis Edibles Market Report.