Although Canada and California have their fair share of differences — both in and out of the cannabis world — our neighbors to the north can certainly be used as a limited indicator of where the Golden State’s fledgeling cannabis market may go.
If we’re to believe that Canada is any indication of what will continue to rise and fall in our own market, then cannabis oils are sure to continue their already-impressive growth. As shown in this chart from Health Canada, the flower-dominated market is slowly giving way to more and more oil sales. Of course, there’s still a long way to go before the two even come close to even sales, but the trends certainly imply that the oil sector is both growing the quickest and has the highest potential ceiling.
Another aspect that will only help the growth of oils in the coming years will be when prices fall to a more stable level. At this point, oils are at a higher price point than simply buying flower products, but the mildly prohibitive costs are bound to normalize and drop as more competitors enter the market. Simple cost and demand will bring oil prices down closer to flowers on a per-dose basis, leaving their personal preference as the only determining factors for consumers — which is so far showing to favor oils more as the market grows.
With oil looking like the future of the cannabis industry, we’ve decided to base our revenue model primarily on the production and distribution of oil products. If those trends were to change, we might as well, but for now we’ll just continue to let the data and analysis validate our predictions.