Hemp Market in Canada
To provide an overview of the hemp market in Canada, including: the market size, growth projections of the market, and areas of opportunity in processing and distribution of hemp.
Size of the Hemp Market in Canada
- Sales of hemp products in 2018 were estimated at $138 million.
- In 2018, Canada planted 77,800 acres of industrial hemp, a decrease from a high of about 123,000 acres in 2017.
- In 2018, Canada exported nearly 5,400 metric tons of hemp seed valued at nearly $50 million.
- About 450,000 people use hemp and cannabis products each day in Canada.
- Canada’s hemp regulations changed in 2018 "to expand the plant’s legal uses beyond seed and fiber, opening the door for Canadian Cannabidiol (CBD) production from hemp."
Growth Projections for the Hemp Market in Canada
- According to forecasts, the hemp industry is projected to grow to C$1 billion in sales by 2023, from C$181 million in sales in 2016.
- Industry forecasts are also suggesting an increase to 450,000 acres of the crop.
- Overall, it is expected that most of the profit made in the private sector from cannabis will come from production, with only about 15% expected to come from retail sales.
Insights on Opportunities for Growth in the Hemp Market in Canada
- The change in regulation opened "additional revenue sources and market opportunities by allowing producers to harvest the flowers, leaves and branches of the hemp plant."
- There has been increased investor interest stimulated by regulatory changes, and cities are working to attract more investors to set up hemp processing facilities, as is the case in the city of Medicine Hat.
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