Legalization of Cannabis in Canada: Consumer and Market Analysis

This report analyzes the implications of cannabis legalization in Canada, focusing on consumer behavior, market segmentation, and the competitive landscape. The report begins by identifying consumer needs and purchase criteria, noting that the cannabis industry is primarily preferred by those who understand its effects and benefits, with a significant user base among the younger generation. It then delves into market segmentation, highlighting the targeting of the youth demographic and the minimum age requirement for purchase. Competitive analysis is conducted by identifying the black market as the primary competitor and discussing the market share and financial data of legal competitors like Maricann Group Inc. and Aurora Cannabis. The report provides an overview of the marketing strategies employed by competitors. Finally, the report considers the implications of these market dynamics, including the need for effective marketing strategies, and the importance of understanding competition to improve sales and marketing approaches. The report also includes relevant references from credible sources.

Running head: LEGALIZATION OF CANNABIS IN CANADA
Legalization of Cannabis in Canada
Name of the Student
Name of the University
Author Note

1LEGALIZATION OF CANNABIS IN CANADA
Consumer Analysis
Needs identified and purchase criteria
Cannabis industry is more preferred by those who have an understanding about the
effects and benefits of this commodity for their own body (Valleriani, Lavalley & McNeil,
2018). They are found to be used primarily among the younger generation. After the legalization
of the use of Cannabis in Canada, it was observed that around 15% of the Canadian population
used this product.
The purchase criteria of the commodity depends on the kind of Cannabis that is bought
from the market. For instance, the suppliers prefer to sell Cannabis oil rather than dry Cannabis,
thereby accounting for 28% of dry Cannabis that is supplied in Canada (Crépault, 2018).
Market segmentation, size and demographic data on segments
For the selling of Cannabis and its products effectively within the population of Canada,
the suppliers have segmented the market for their convenience (Macdonald et al., 2016). They
consider the youth of the community to be their target population. As a result of this, the
products of Cannabis is sold to around 15% of the current population of Canada. The minimum
age criteria that has to be met in order to purchase Cannabis is that of eighteen years.
Another group of people who are seen to be purchasing Cannabis is that of the elderly
population of Canada. Such a trend has occurred mainly due to the rise in the search of anti-
pharmaceutical industry. Cannabis is said to have a lot of health benefits, one among of them is
that of curing cancer cells.

2LEGALIZATION OF CANNABIS IN CANADA
Among the males around 19% of them use Cannabis in Canada whereas around 19% of
the females use Cannabis as recorded in the year of 2018 in Canada ("Legal Marijuana Market
Size, Growth & Analysis | Industry Report, 2025", 2019). Around 33% of the people belonging
to the age group of eighteen to twenty four years are found to be using Cannabis while that of the
other age groups recorded a small percentage of 5% to 21% ("Legal Marijuana Market Size,
Growth & Analysis | Industry Report, 2025", 2019).
Implications
The implications of such consumer analysis is important to understand as the market of
Cannabis is an upcoming sector in the region of Canada. Furthermore, for so long the product
was illegally sold in the black market which showed to the policy makers the increasing demand
of this commodity. After the legalization, however, it was found that the number of people using
Cannabis did not increase by a significant level. The proper and efficient market segmentation
has made the sale of this product more efficient in nature.
Competitive Analysis
Number of competitors noted
The biggest competitor of legal Cannabis in Canada is the one that is found in the black
market. Cannabis has been sold in Canada for the longest duration through the black market. As
a result, the eradication of such a huge and deep rooted market is quite a challenging tasks for the
policy makers. One of the main objectives of the legalized Cannabis sector is to stop the sale of
Cannabis through the illegal challenges as this severely affects the revenue generated from this
industrial market sector.

3LEGALIZATION OF CANNABIS IN CANADA
The other companies from whom the Cannabis sector faces a stiff completion are those of
Maricann Group Inc., Aurora Cannabis, The Cronos Group, Tilray, Lexaria Group and others of
similar nature (Wire, 2019).
Market share and financial data on major competitors
Source: “Potential Competitors in a North American Cannabis Market | IBISWorld Industry
Insider", 2019
The market share of the various competitors of the Cannabis sector in Canada has been
shown with the aid of the above graphical diagram.
Description of the competitors’ marketing programs
The various marketing strategies and programs that been utilized by the competitors include
those of better marketing strategies, keeping a variety of products with them and not simply
Cannabis oil and dry Cannabis. Furthermore, the competitors are able to effectively utilize the
variation in their products to appeal to the different age groups of the people of Canada.
Implications

4LEGALIZATION OF CANNABIS IN CANADA
The analysis of the competitor market is essential for the paper as it gives the readers an
over view of the different areas from where such a market faces stiff competition. In this section,
the market competitors of Cannabis and their data has been analyzed in a comprehensive
manner. This in turn, would aid the suppliers of legal cannabis to deal with their competition in a
more effective manner by bringing out the necessary changes in their selling practices.
Furthermore, the different market strategies that have been adopted by the competitors provides
an insight to the legal Cannabis sector to upgrade their marketing style.

5LEGALIZATION OF CANNABIS IN CANADA
References:
Crépault, J. F. (2018). Cannabis legalization in Canada: Reflections on public health and the
governance of legal psychoactive substances. Frontiers in public health, 6, 220.
Legal Marijuana Market Size, Growth & Analysis | Industry Report, 2025. (2019). Retrieved 4
August 2019, from https://www.grandviewresearch.com/industry-analysis/legal-
marijuana-market
Macdonald, S., Stockwell, T., Reist, D., Belle-Isle, L., Benoit, C., Callaghan, R., ... & Roth, E.
(2016). Legalization of Cannabis in Canada: Implementation strategies and public
health. Bulletin). Victoria, BC: University of Victoria, Centre for Addictions Research of
BC.
Potential Competitors in a North American Cannabis Market | IBISWorld Industry Insider.
(2019). Retrieved 4 August 2019, from
https://www.ibisworld.com/industry-insider/analyst-insights/a-watched-pot-potential-
competitors-in-a-north-american-cannabis-market/
Valleriani, J., Lavalley, J., & McNeil, R. (2018). A missed opportunity? Cannabis legalization
and reparations in Canada. Canadian Journal of Public Health, 109(5-6), 745-747.
Wire, B. (2019). North America Cannabis: New Markets, Competitors & Opportunities -
Analysis and Forecasts 2018-2026, With a High Growth Expected in the Market -
ResearchAndMarkets.com. Retrieved 4 August 2019, from
https://www.businesswire.com/news/home/20180705005204/en/North-America-
Cannabis-New-Markets-Competitors-Opportunities