Canada’s New Kid on The Block
Ever since Canada legalized recreational marijuana last year, the effects have rippled through the country. Although Canada isn’t new to pot, the implementation of recreational cannabis has pushed the number of available jobs to new heights. This new industry has created a boon for local economies and has also introduced the rise of corporatized cannabis companies.
The Cannabis Economy
In 2018, Canadians spent well over $1.5 billion on recreational cannabis. This number is double that of medicinal cannabis sales in the previous year. With pot sales expected to increase dramatically, the number of workers in this sector is anticipated to grow along with it.
With such massive demand, many analysts are expecting shortages as there are only a handful of major licensed producers in the country, most notably Canopy Growth, Aurora Cannabis, and Emerald Health Therapeutics. The exponential demand is set to snowball the current cannabis industry in Canada to a whopping $8 billion in the next few years.
Besides the large cannabis producers, there are an estimated 700 licensed producers and applicants, which means a booming market for job applicants.
According to data from 2018, 2,400 individuals were employed by the 55 licensed cannabis producers throughout the country. This number doesn’t factor in the employees of dispensaries and every aspect of the supply chain once a cannabis product leaves a facility.
Considering this rapid growth and rise in available jobs, the cannabis industry is poised to boost Canada’s economy in a significant way.
The Rise of Corporate Cannabis
Companies such as Aurora Cannabis, Canopy Growth, Aphria, and many others have transitioned from minor companies into full-fledged corporations. This change was inevitable, especially as each company has market capitalizations of well over a billion dollars.
The cannabis industry is rivaling that of other sectors, such as alcohol and tobacco, and it’s playing the part well. Each company has state-of-the-art production facilities as well as high-end headquarters.
From Basement to Corporate Office
The current state of cannabis corporations is a far cry from its seemingly-distant past. Only a handful of years ago, growers within these companies were locked away from sight in their basements growing cannabis for sale on the black market.
Instead of cannabis products flowing through unregulated avenues, the advent of recreational marijuana has decreased the overall amount of unregulated sales. No longer do individuals need to go through risky situations to purchase cannabis.
Growers with previous non-violent crimes tied to cannabis are receiving pardons or having their records expunged so they too can enjoy cannabis legally. These individuals are being given a second chance now that marijuana is legal.
The stigma of producing marijuana is no longer present because of its normalization and acceptance in the world of business. Many successful cannabis production companies have a very public face and are culturally accepted.
The current trend of the corporatization of recreational cannabis is only beginning, and we can expect even more significant developments soon regarding the effects of cannabis on the Canadian economy.
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