Non-Combustible Consumption On The Rise
For many years the pastime of getting elevated has included combustible methods such as smoking a joint, hitting a bong or blazing a blunt. However, times are changing, and the way people enjoy utilizing this plant is changing as well. According to a recent report by Ernst & Young, by the year 2025 non-combustible consumption methods such as vaporizing cannabis extracts or consuming edibles will make up more than half of the market.
Many people are choosing to consume cannabis using more discrete methods. Eating infused edibles as well as vaping on a vape pen is much more discreet than smoking flower. Not only is discretion starting to be a priority, but many of us are also tired of trying to hide the smell of cannabis after consuming because when you smoke the dank, you smell like dank.
In fact, there are many other aspects surrounding the Cannabis industry in Canada as well as cannabis consumers and patients that are set to change moving forward.
- Average wholesale price for dry flower in five years will be between $4 and $5 per gram.
- The profit margin which includes higher-margin non-combustible derivative products will be between 60 to 70%.
- In less than five years the supply of cannabis production in Canada will outweigh the demand.
- By 2025 dried flower will represent only 46% of sales. Meanwhile, extracts will represent 37%, and edibles will represent 12%. Additionally, non-edible infused derivatives will represent 5% of the market.
- The market will grow from a $6.5 billion estimated value to $11 billion by 2025.
- What consumers spend annually on cannabis will increase to $1,652 a year by 2025.
- It’s predicted that 20% of the total adult population in Canada will be cannabis consumers by 2025
- The report predicts that there will be more than 14 million square feet of licensed facilities within the next two years.
- Capital investments for cultivation and processing facilities will be between $140 and $250 per square foot. Meanwhile, the build-out of some facilities could be more than $400 per square foot by 2025.
Do you think these predictions are inline? Do you have predictions of your own? Leave us a comment or give us a shout out on social media and let us know!