Experts Now Say It May Take Canada Three Years To Fix The Marijuana Shortage - MTL Blog

Experts Now Say It May Take Canada Three Years To Fix The Marijuana Shortage

AKA the SQDC likely won't be open on Mondays anytime soon.

Some experts believe it could take Canada up to three years to catch up to the consumer demand for cannabis across the country.

Due to smaller growth than expected, certain investment groups predict that the industry will continue failing to meet consumer demand as production companies struggle to scale up their businesses.

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TL;DR Business experts believe the slow financial growth of the cannabis industry means producers and retailers are going to continue to struggle to meet consumer demands... maybe even for the next three years.

In an interview with TVA, the head of the Toronto investment firm Auxly Cannabis Group said that he felt Canada has three years to go before the cannabis industry stabilizes.

In Quebec we know there has been such a shortage that retail stores had to scale back their opening hours to limit consumers' access to cannabis and slow down the rate of sales.

Via MTLBlog.com

This is in part because producers simply cannot keep up with Canada's current demand. It takes time for companies to scale up, especially if their new goals are nearly doubled. 

With that said, though, as cash continues to flow within the industry, the creation of jobs will continue and the production from current companies is sure to increase. More legal producers will likely hit the market soon, too.

Some experts believe the turnaround could be much quicker than three years, though, as producers strive to provide a lower price-point that is meant to beat out the ongoing black market.

TVA reported that the C.D. Howe Institute currently sees Canada only meeting 38% of consumer demand for cannabis in the next 10 months. 

To be clear, that means only 38% of the cannnabis purchased in the next 10 months will be done through legal avenues. Because it goes without saying that while illegal avenues still exist, consumers will continue to use them. 

It is only when 100% of consumer demand is met by the legal options that the cannabis black market will cease to exist. 

However, the licensed producers of cannabis products in Canada still must face "post-production bottlenecks" that go hand-in-hand with a nascent industry such as cannabis.

As the industry continues to unfold and grow, these bottlenecks will go away, leaving a more fluid and open market that encourages growth both in production and retail.

Stay tuned.

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