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North America Cannabis: New Markets, Competitors and Opportunities: 2018-2026 Analysis and Forecasts

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  • 213 Pages
  • July 2018
  • Region: North America
  • Amadee & Company, Inc
  • ID: 4585973

The legal Cannabis revolution is only beginning. The 80+ years prohibition against its use is now ending and the tides are clearly turning. Despite being illegal for so long, more than 37 million people in the U.S. and millions more in Canada use Cannabis, both legally and illicitly. As a result, the market for Cannabis in North America already is large and growing quickly. In 2018, more than $41 billion will be sold and by 2026 that figure will rise to $95 billion.

The Cannabis revolution offers new hope for many medical problems, a substitute for alcohol and tobacco, and unrivaled investment opportunities for individuals and companies wanting participation in this emerging market.

This report is focused on the U.S. and Canada (North America) markets for Cannabis, both legal and illicit. Specifically, this report covers:

  • North America Cannabis industry including market size and growth, price trends and competitive environment including the black market.
  • United States Cannabis market size and growth, regulation issues, market drivers, transition from illicit to legal, prices, user base, incidence of use, tax incentives, legal risks, financing issues, state metrics and characteristics, branding, derivative products, threats/opportunities to other industries.
  • Canada Cannabis industry including market size and growth, country metrics, regulation issues, comparisons with Colorado and California, black market, prices, market potential, production capacity, supply concerns, opportunities beyond cultivation, competitive environment.
  • Selected company profiles detailing product offerings, brands, facilities, operations, sales, distribution, prices, JVs, exports, expansion plans, yields, costs, patients, M&A activity, competitive advantages, strategies.

Table of Contents

1. Executive Summary
2. Introduction
Report Objectives
Methodology and Sources
Statistical Notes
3. North America Cannabis Market
U.S. and Canada Market
Cannabis Is a Commodity
Price by Where Grown
Price Deflation Drivers
Competitive Environment
Black Market
4. United States Cannabis Industry
What Is Cannabis
Prohibition Ending
Key Takeaways
Primed for a 6X Increase
Legitimate Industry Seeing Growing Investments
Impact on Alcohol and Tobacco
Regulation Key Gating Factor
Health Care Long-Term Opportunity
Life Science Tools Opportunity
Market Drivers
Cannabis Legalization in the United States
Sales by State
Schedule I Classification Continues to Weigh on the U.S. Industry
Legal Markets Complications
Popular Support
Transitioning from the Illicit Market
Highly Engaged User Base
Incidence Continues to Grow
User Base Growing
Growing Per Capita Spend
Tax Incentives
$50 Billion Industry
Opportunities for Industry Growth
Migrate Illicit Market
Expand Addressable Market
Incidence and Users Increasing
Federal Schedule I Classification
Sessions Memorandum
Marijuana Cases Drop Sharply
State Level Regulation to Drive Feds
Unfavorable Federal Tax Rules
Repatriation of Profits
Scale Prohibitions
U.S. Partnerships in Canada
Selected U.S. States
State Metrics and Characteristics
Estimated Market Size
State Metrics and Characteristics
Estimated Market Size
Washington State
State Metrics and Characteristics
Assets Become More Specialized
Cannabis as an Ingredient
Branding Cannabis
New Ways for Consuming
Derivative Categories
Cannabis as a Threat and Opportunity
Alcohol and Tobacco
Hemp and CBD Based Products
5. Canada Cannabis Industry
Key Takeaways
Country Metrics
Market Size
Canada Compared to Colorado
Canada Compared to California
Canada Black Market
Canada Incidence of Use
Cannabis Act Bill
Edibles and Concentrates
Initial Sales Levels May Be Slower Than Expected
Illicit Market Exceeds Legal
Short- and Long-Term Market Potential
Production Capacity
Supply Concerns
Opportunities Beyond Cultivation
Value-Added Processing/Branded Products
Global Export Markets
Competitive Environment
Long-Term Value
Ready to Sell Product
Expected Supply Shortfall
6. Company Profiles
ABcann Global Corporation
(Company Overview, Vanluven Facility, Kimmett Expansion, Production Capacity, Products/Brands, Dried Cannabis, Exceptional Yields, Sales/Distribution, Export Markets, Market Strategy, Product Development, R&D, Patients, Cost Per Gram, Costs for Expansion, Advisory Board, Share Structure, Revenue Forecast, Financials)
Aphria Inc.
(Company Overview, Products, Facilities, Major Greenhouses, Increasing Capacity, Recreational Agreements, Wholesale Agreements, Oil Processing, Exports, International May Disappoint, Medical Market, ACMPR, Line Expansions, Second Largest LP, Cash Costs, Expansion Plans, Partners, Double Diamond JV, Inexpensive New Capacity, Big Winner, Shakeout Coming, Financials)
Aurora Cannabis Inc.
(Company Overview, Facilities, Domestic Expansion, Major Greenhouses, CanniMed Acquistion, Products/Brands, Dried Cannabis, Cannabis Oils, Partnership with Radient Technologies, Hemp Acquisition, Superior Breeding Technology, Superior Strains, Low-Cost Advantages, First Mobile App, Same Day Delivery, International Expansion, Vape Partnership, Choom Holdings, Anandia Laboratories, Capcium Inc., Aurora EV, Upside Case, Base Case, Downside Case)
CannaRoyalty Corp
(Company Overview, River Wellness, CR Holdings, Trichome, Available Market, Competitive Environment, Distribution Companies, Brands, Vape Pens, Ultra-Premium Products, Edibles, Consumer Choices, Leverage, California Strategy, Kaya Management, Alta Supply Inc., Financials)
Canopy Growth Corp.
(Company Overview, Products, Brand Strategy, Domestic Expansion, Timeline, International Expansion, Germany, Australia, Denmark, Jamaica, International Risks, Financials)
Cronos Group Inc.
(Company Overview, Brands, Peace Naturals, Original BC, Whistler Medical Marijuana, Israel JV, Platform for Growth, Distribution Opportunities, Israel Like Canada, Further Expansion, Israeli Medical Cannabis Market, Regulatory Changes, Export Markets, Financials)
MedReleaf Corp.
(Company Overview, Facilities, Markham Facility, Bradford Facility, Capacity Expansion, Exeter Facility, Positive Impact, Retrofit Costs, Competitive Advantage, Products/Brands, Cannabis Oils, Cannabis Oil Capsules, Tikun Olam JV, ISO Certification, Analytical Approach, Superior Yields, Sales/Distribution, Export Markets, Veterans Affairs, Marijuana and PTSD, Third-Party Insurance, Financials)
The Hydropothecary Corporation
(Company Overview, Premium Product, VAC Impact, Facilities Expansion, Expansion CAPEX, Strong Product Innovation. Decarb, Elixir No.1, Cannabis Awards, Structured Innovation, Top-Tier Producer, Strong Growth Profile, Competitive Advantages in Quebec, Quebec Recreational Market, Quebec Supply Partner)
List of Figures
1.) Cannabis Sativa
2.) GW Pharmaceuticals Epidiolex
3.) State of Cannabis in U.S: 2Q 2018
4.) Americans’ Support for Legalizing Marijuana (%): 1970-2018
5.) Cannabis Consumption Formats
6.) U.S. Illicit Drug Use by Type (Number, % Population): 2016
7.) U.S. Adult Cannabis Incidence Changes in Past Month and Past Year for 18-25 Age Cohort and 26+ Age Cohort (%): 2016-2026
8.) U.S. Adult Cannabis Users (Millions) in Past Month and Past Year for 18-25 Age Cohort and 26+ Age Cohort (%): 2009-2026
9.) Washington State Cannabis Users (Million), Incidence (%) by Past Year/Month and Annual Spend for Cannabis, Alcohol, Cigarettes, Tobacco ($): 2014
10.) Federal Offenders by Primary Offense Category: FY2017
11.) Average Federal Prison Sentence by Primary Drug Type: FY2017
12.) Washington State Tax Revenue Growth by Contributor (%): 2017
13.) Estimated Oregon State Marijuana Revenues ($ Thousands): 2018 to 2022
14.) Estimated Nevada State Marijuana Revenues ($ Thousands): 2018 to 2022
15.) Wide Variety of Products Can Come from Specialized Cannabis and Hemp Cultivation Assets
16.) Colorado Marijuana Sales by Category (%): 2015-2016
17.) U.S. Marijuana Sales by Category and Age Cohort (%): 2015-2016
18.) Current Users of Cannabis and Alcohol in the U.S. by Age Group (%)
19.) Current Users of Cannabis and Cigarettes in the U.S. by Age Group (%)
20.) Estimated Canada Marijuana Revenues (C$ Thousands): 2018 to 2022
21.) Colorado’s Initial Demand for Recreational Cannabis vs. Medical and Illicit Cannabis (%)
22.) Cannabis Consumption in Canada (kg/Year) and CAGR (%): 1960-2015
23.) Cannabis Consumption in Colorado, Oregon, Washington State Following Legalization (% of States Population) and Growth Rate (%)
24.) Capital Invested into Licensed Producers in Canada by Quarter (C$ Million): 2017-2018
25.) Total Cannabis Funded Production Capacity by Producer (kg): 1Q 2018
26.) Producer and Retailer Cannabis Margins (C$): 2018-2021
27.) Number of Businesses by Type in U.S. Cannabis Industry
28.) Margin Contributions for a Cannabis Vape Pen: 2021
29.) Canada LPs Market Cap vs Quarter Sales ($ Million): 1Q 2018
30.) Canada LPs Market Cap vs Quarter Inventory ($ Million): 1Q 2018
31.) Vanluven Bloom Room/Air Shower
32.) ABcann Expansion Plans
33.) ABcann Product Spectrum/Packaging
34.) ABcann Yields vs. Peers
35.) ABcann Revenue Forecasts: 2017-2021
36.) Southern Glazers Agreement
37.) Aphria Cannabis Capacity (kg): 2017-2022
38.) Aphria Capacity by Unit: 2018-2019
39.) Aphria Recreational Distribution Agreements: 2018
40.) Aphria International Expansion and Agreements: 2018
41.) Aphria New Products
42.) Aphria Is Low Cost Producer
43.) Aphria Expansion Plans
44.) Aurora Cannabis Canadian Facilities and Capacity: 2Q 2018
45.) Aurora Cannabis Capacity (kg): 2017-2022
46.) CannaRoyalty History and Overview
47.) CannaRoyalty Investments by company (C$ Million): 2018
48.) CR Holdings Operations
49.) Trichome Operations
50.) CannaRoyalty Available Market
51.) California Cannabis Competitive Environment
52.) CannaRoyalty Distribution Companies
53.) California Cannabis Brands in Distribution
54.) CannaRoyalty Owned and Licensed Brands in California
55.) Bhang Vape Pens Products
56.) CannaRoyalty Floracal Products
57.) CannaRoyalty Edible Products
58.) What Product Will Consumers Choose?
59.) Leveraging the U.S. Platform
60.) Brands Sold via Alta Supply
61.) Canopy Growth Core Products
62.) Canopy Growth Brand Strategy
63.) Canopy Production Capacity by Provence: 1Q 2018
64.) Canopy Growth Capacity by Year (kg): 2017-2022
65.) Hydropothecary Corporation Volume (Grams) and Pricing (C$/Gram): 2016-2017
66.) Hydropothecary Corporation Revenue (C$ Thousands) and Growth (%): 2016-2017
67.) Hydropothecary Corporation 50,000 sq.ft. Facility
68.) Hydropothecary Corporation Production Capacity by Site (Thousand kg): 2018-2020
69.) Hydropothecary Decarb Product with CannaCap
70.) Hydropothecary Elixir No.1
71.) Recreational Cannabis Demand by Canada Province (000’s kg): 2020
72.) Quebec Recreational Market vs. Hydropothecary Projected Capacity (000’s kg): 2018-2020
73.) MedReleaf Markham Facility
74.) MedReleaf Bradford Facility
75.) MedReleaf New Greenhouse Facility in Exeter, ON
76.) MedReleaf Strain Samples
77.) MedReleaf Cannabis Oil Capsules
78.) MedReleaf Lockable Product Packaging
79.) MedReleaf Yields Compared to Industry Average
List of Tables:
1.) North America Cannabis Market Illicit vs. Legal ($ Billion): 2016-2026
2.) North America Cannabis Average Selling Price ($/Pound, $/Gram): 2016-2026
3.) Price of Cannabis for Three Largest Public Producers vs. Legal Outdoor Homegrown ($/Gram): 2018
4.) Selected Public Cannabis or Cannabis-Related Companies
5.) Selected Private Cannabis or Cannabis-Related Companies
6.) Number of Canada Licensed Producers by Province: 2018
7.) U.S. Legal Cannabis Market by State ($ Billion): 2017
8.) Schedule I Risk Mitigating Factors
9.) U.S. Illicit and Legal Cannabis Market ($ Million): 2016-2026
10.) Annual Spend Per User ($) vs. Past Year Cannabis Users (Million) Equals Total Market Value ($ Billion)
11.) DEA Drug Classifications
12.) History of Medical Marijuana Legalization: 1996-2016
13.) Oregon Marijuana Key Market Features
14.) Nevada Marijuana Key Market Features
15.) Washington State Marijuana Key Market Features
16.) Canada Marijuana Key Market Features
17.) Canada Cannabis Market Illicit vs. Legal ($ Billion): 2016-2026
18.) Canada Cannabis Market Value (C$) Compared to Colorado Market Value ($): 2017
19.) Canada Cannabis Market Detailed Analysis by Product Type (Flower, Concentrates, Edibles, Trim) Value (C$), Volume (kg) and THC Yields: 2024
20.) Medical Cannabis Legal Status in Selected Countries and Total Addressable Market Size by Country
21.) Countries with New Medical Cannabis Law Since 2015
22.) Aphria Income Statement: 2017-2020
23.) Aurora-CanniMed Combined Entity
24.) Aurora Cannabis Enterprise Value and Fair Value Share Price (Upside Case): 2Q 2018
25.) Aurora Cannabis Enterprise Value and Fair Value Share Price (Base Case): 2Q 2018
26.) Aurora Cannabis Enterprise Value and Fair Value Share Price (Downside Case): 2Q 2018
27.) CannaRoyalty Income Statement (C$ Thousands): 2016-2019
28.) Canopy Growth Greenhouse Capacity by Facility: 2Q 2018
29.) Canopy Growth Income Statement: 2016-2017
30.) Cronos Group Canadian Medical and Recreational Marijuana Revenue by Type (kg): 2017-2028
31.) Cronos Group Income Statement (C$ Thousands): 2017-2028
32.) MedReleaf Income Statement: 2015-2017

Companies Mentioned

  • ABcann Global Corporation
  • Aphria Inc
  • Aurora Cannabis Inc.
  • CannaRoyalty Corp
  • Canopy Growth Corp.
  • Cronos Group Inc.
  • MedReleaf Corp.
  • The Hydropothecary Corporation