“Federally, cannabis legalization saw daylight in Canada in 2018. The Cannabis Act legalized recreational marijuana in October 2018. Now, the country is all set for the second wave of legalization, Cannabis 2.0, which includes cannabis edibles, cannabis-infused beverages, extracts, and various other products. Let’s dig into this more.
Canada’s second wave of legalization
Next month, Canada will legalize cannabis-infused edibles for recreational use. The Canadian market will see a limited selection of products in retail outlets and online stores after the legalization, but not earlier than mid-December.
Canada legalized medical and recreational marijuana. However, the country has been very careful to ensure that public health safety is also taken into account. Keeping in mind how the edibles market could attract young people, Health Canada implemented a strict legal framework for cannabis. The amendments to Canada’s regulations in June will ensure legal production and sale of edible cannabis, cannabis extracts, and cannabis topicals.
Why regulations are important
Gummies look like the favorite choice in edibles. However, Health Canada will be careful with product labels and marketing. Since gummies are a popular product among children and youth, officials want to ensure that marketing strategies don’t influence them.
Health Canada ensured that there are stricter regulations and guideline for the products. Notably, Health Canada released a new set of guidelines on June 14 for edible cannabis, cannabis extracts, and cannabis topicals. The regulations include marijuana and industrial hemp regulations.
Canada’s cannabis industry
What fascinates me about Canada’s approach to legalization is its model. The Canadian government made efforts to pass legislation. Notably, the legislation controls marijuana use and sales even though it’s legalized. By allowing marijuana to be sold only by government-licensed retailers and grown only by licensed producers, Canada can keep illicit activities in check. Illicit activities are a major concern in the cannabis industry.
Recently, I discussed how California is on the path to become marijuana’s biggest black market. Read Marijuana Policy: Can California Shape It for the US? to learn more.
More black market sales would impact cannabis companies with exposure to the California market. A Forbes article in March discussed how higher taxes, opposition from local officials, and clumsy regulations are making the black market popular. Also, getting a license, renewing licenses annually, and other operating costs make dealing with legal cannabis expensive.
Read the full article at Market Realist