Marijuana sales in Canada are likely to outpace liquor sales by 2020, according to a report released by the Canadian Imperial Bank of Commerce (CIBC).
“We believe that by 2020, the legal market for adult-use cannabis will approach $6.5 billion in retail sales”, claims the CBIC. “For context, this is greater than the amount of spirits sold in this country, and approaches wine in scale.”
These numbers are based on the CBIC’s calculation that Canadian’s will purchase 800,000 kilograms of legal recreational marijuana annually by 2020, at an estimated price of $10 per gram. Prime Minister Justin Trudeau and his Liberal Party are working to have the legal marijuana industry underway by July.
“The bulk of the value generated from this industry will accrue to Canada’s provinces”, states the CBIC report. “In fact, we estimate that provinces will generate over $3 billion of income, either in the form of earned profits or taxation revenues”.