(This is the second installment of a two-part collection analyzing medical marijuana exports from Canada. Part I checked out dried cannabis. This story has been up to date from a earlier model.)
Exports of medical cannabis oil from Canada had a breakout yr in 2017 – and executives say it’s simply the beginning for an enormous new abroad market.
Medical cannabis exports in oil type rose 300% from 2016 ranges, in response to knowledge shared with Marijuana Business Daily by Health Canada. Analysts anticipate this development to proceed as nations legalizing medical cannabis look to imports to satisfy demand in lieu of home cultivation.
“Countries like Malta have outright banned smoked forms of medical cannabis from being permitted within their legislation,” famous Deepak Anand, vice chairman of presidency relations for the consultancy Cannabis Compliance.
“I believe we are going to see this trend – of cannabis oils demand and exports from Canada – significantly increase in the immediate future.”
In 2016, 100.eight kilograms of cannabis oil have been shipped abroad. That jumped to 400.four kilograms in 2017, as extra nations legalized MMJ.
Cannabis oil has extra upside potential than that of flower, analysts and executives say, as a result of:
- Oil permits for various types of administration by sufferers.
- Oil is simpler and cheaper to move abroad.
- Many nations restrict the type of medical cannabis that can be utilized, however oil is broadly allowed.
Germany, which is on monitor to turn out to be one of many world’s largest medical marijuana markets this yr, imports extra MMJ from Canada than some other nation in lieu of home cultivation.
And that’s not anticipated to vary any time quickly, as a German courtroom slammed the brakes on the nation’s home cultivation plan in late March.
As a outcome, exporters from Canada and the Netherlands could have a fair greater head begin over home manufacturing.
Germany took in 169 kilograms of medical marijuana oil from Canada in 2017. That was adopted intently by Australia (145 kilograms), Croatia (37 kilograms) and the Cayman Islands (23 kilograms).
Canadian medical marijuana is already accessible by most of Germany’s 20,200 pharmacies from suppliers like Aurora, Tilray, Cronos, Maricann, ABcann, CanniMed (now owned by Aurora), Nuuvera (now referred to as Aphria worldwide) and MedReleaf.
The European Union’s largest financial system expects to depend on imports to satisfy cannabis demand for at the least a decade.
The knowledge from Health Canada additionally exhibits that export purposes are skyrocketing.
In 2016, 64 export permits have been issued for cannabis oil merchandise.
The following yr, that nearly doubled to 114 export purposes.
No medical marijuana was exported in 2015 beneath the previous Conservative authorities, which didn’t share the pro-cannabis views voiced by present Prime Minister Justin Trudeau.
Oil over leaf
Canopy Growth’s Jordan Sinclair stated oils can be utilized as a device for destigmatizing cannabinoids by shifting the dialog to a language docs converse.
“In new markets where doctors have limited exposure to medical cannabis prescribing, this paradigm shift can go a long way,” he stated.
“Oils, and especially softgel capsules, are a more familiar format to doctors because they can be prescribed by the milligram of active ingredient and don’t have to be smoked.”
Aaron Salz, founding father of the Stoic Advisory consulting agency in Toronto, says a big export alternative exists as a result of different nations are modeling their packages after Canada.
“Most countries are choosing to first legalize cannabis oil over flower,” he stated. “So that’s created an opportunity for exports to countries that are starting with strict medical regimes with limited qualifying conditions.”
Matt Lamers may be reached at [email protected]
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