Female Canadians: A Big Cannabis Market Is About To Open
It’s all in the numbers. Specifically, it’s in the recent data from Statistics Canada on Canadian cannabis consumption.
Cannabis was legalized in Canada nationally in October 2018. Since that time, however, it’s been primarily a male market.
In data from its National Cannabis Survey (second quarter 2019), Statistics Canada reported this.
Males (21%) were almost twice as likely to have used cannabis in the first half of 2019 as females (12%). This held true for every age group except seniors aged 65 and older.
Almost three in five females reported never having consumed cannabis (59%), compared with just over half (51%) of males.
About one-third of Canadians (males and females) reported having tried cannabis in the past but are not current users.
Males current represent nearly two-thirds of consumers. But for Canadian cannabis companies and cannabis investors, there was another important message from this survey.
Males are more likely to purchase cannabis while females are more likely to get it from family and friends for free.
Obviously, what this data shows is that some of the cannabis purchased by Canadian males was intended to be shared with female friends/relatives. But for the cannabis industry, the question remains: how to get more Canadian females to purchase cannabis?
Here, the answer could already be on the near-term horizon. An important clue is found by digging deeper into Canadian consumer data.
While a majority of both males and females use dried cannabis, for 49% of males and 41% of females, it is the only form of cannabis that they consumed.
Conversely, females (23%) were almost twice as likely as males (12%) to report using only products other than dried cannabis. Other products include edibles, oil cartridges and vape pens.
Smoking remains the most common method of consuming cannabis, with 68% of males and 62% of females choosing this method in the first half of 2019, according to Statistics Canada.
At 14%, females were almost three times more likely than males (5%) to have consumed cannabis through methods such as the application of products on the skin or under the tongue.
Women are much more interested in cannabis outside of its (natural) dried form: edibles, oil cartridges and vape pens. They are also much more interested in topical cannabis products.
What will be of great interest to cannabis companies and investors alike is that these alternative cannabis products are only becoming legal in Canada in October 2019, as Phase 2 of legalization kicks in.
Phase 2 of legalization is already expected to provide a major boost to the Canadian cannabis industry, will billions of dollars in new revenues expected to materialize. Perhaps more importantly, the (legal) production and distribution of these new products can be expected to draw an especially large/positive consumer response from women.
These newer products aren’t expected to reach store shelves until mid-December. But once that happens there is every reason to expect an especially strong surge in cannabis purchases by Canadian women.
This is because Canada’s provinces are finally reaching a critical mass in terms of the number of retail cannabis stores that are open to service this market. Cannabis retail sales have grown at a double-digit rate for the last three months.
As Ontario triples its retail access (it’s handing out 42 new store licenses), this growth in cannabis retail sales will likely accelerate. Further acceleration should occur in Phase 2 – along with the emergence of a strong female component in cannabis demand.
Momentum continues to build in the Canadian cannabis industry. Meanwhile, cannabis stock valuations have retreated to absurd lows.
As The Seed Investor regularly points out to cannabis investors, this enormous disconnect between cannabis industry fundamentals and cannabis stock valuations represents a stellar investment opportunity.
Published at Tue, 27 Aug 2019 10:00:08 +0000