Study #: 3761 | Published: 07/2019 | Pages: 108 | Individual User License: US$ 2,900

Sales of Cannabis Growing Supplies Expand at Fast Pace, in Line with Canadian Hemp & Marijuana Outputs

In October 2018, the Cannabis Act legalized adult-use (i.e., nonmedical, recreational) marijuana in Canada and supplanted previous regulatory regimes for medical marijuana and industrial hemp. As legal operations continue to develop nationwide and federally licensed production expands to meet demand, significant sales opportunities will arise for suppliers of the consumables and equipment used in federally licensed production of hemp and marijuana.

As a result, the Canadian market for cannabis growing supplies is expected to expand 11.7% per year to US$1.8 billion in 2023. Cannabis (i.e, hemp and marijuana) production will expand at the same yearly rate and be the primary driver of sales gains. Also boosting sales will be:

  • rapid growth in federally licensed marijuana production – which generates higher-value sales than hemp operations – supported by the formation of legal retail markets at the provincial level under the Cannabis Act
  • expanding opportunities for hemp producers stemming from rising consumer interest in CBD-infused food, beverages, supplements, and other products

Key Findings in the Cannabis Growing Market Study:

Robust Expansion in Commercial Marijuana Production to Drive Sales

Robust anticipated expansion in marijuana production volume of 30% per year will drive gains for cannabis growing supplies. Despite accounting for a marginal share of cannabis production volume, marijuana operations represent nearly half of production value:

  • While hemp is relatively inexpensive to produce, marijuana operations are most likely to operate indoors and require complex and expensive supplies.
  • Particularly high marijuana production activity in British Columbia and Ontario supports high market values.
  • Nevertheless, the hemp-focused markets of Alberta and Saskatchewan will continue to lead the growing supplies market based on their output volumes.

As regulated commercial marijuana markets continue to develop nationwide, demand will expand for supplies such as hydroponic equipment, high-intensity grow lights, HVAC equipment, and specialty soil amendments. However, because most equipment types have long lifespans, demand for consumables – an ongoing seasonal need – will grow faster.

Rising Demand for CBD Is Spurring Sales of Hemp Growing Supplies

The emerging market for health products, cosmetics, pet supplements, and other goods infused with cannabidiol (CBD) enabled by the 2018 Cannabis Act is creating major new opportunities for Canadian hemp producers and even inspiring food and beverage firms such as BevCanna to invest in hemp capacity. As hemp production expands nationwide, sales of related seeds, irrigation systems, security equipment, and other products are projected to rise at a fast pace. However, since hemp is typically grown outdoors, the need for some high-value equipment (e.g., lighting and hydroponic grow systems) is limited.

Alberta & Saskatchewan Lead in Consumables & Equipment Demand for Cannabis Production

Alberta will remain the leading Canadian market for cannabis growing supplies, supported by high hemp output and comprehensive regulation of adult-use retail markets, which has enabled accelerated growth of its cannabis industry compared to other provinces. Based on its extensive existing hemp capacity and low marijuana production levels, Saskatchewan will remain the second largest market while advancing at the slowest pace of any province.

Study Coverage

This Freedonia industry study analyzes the US$1.2 billion Canadian cannabis growing market – including consumables and equipment used to grow hemp and marijuana. The study presents historical demand data for 2018, and forecasts for 2019, 2023, and 2028 by product type (seeds & clones; growing media; fertilizers & nutrients; other consumables; water tanks, irrigation, & hydroponic equipment; fans & HVAC equipment; security equipment; lighting systems & bulbs; pots & planters; harvesting & trimming equipment; cloning equipment; other equipment). Demand is also segmented by market (commercial, private-use residential); growing system type (soil-based; hydroponic); and Canadian province (Alberta, British Columbia, Manitoba, New Brunswick, Ontario, Quebec, Saskatchewan). In addition, the study provides historical production data for 2018, and forecasts for 2019, 2023, and 2028 for Canadian hemp and marijuana in dry pounds (further segmented by operation type) and value (further segmented by application). This report also features a detailed overview of the regulatory environment, including up-to-date analysis of federal and provincial regulations regarding production, access, possession, use, and sale of industrial hemp, CBD products, medical marijuana, and adult-use marijuana.


Our Simple Buying Process

Add This Study To Your Cart.

Register, Checkout and
Verify Payment.

Your Report Is Available.

Table of Contents

EXECUTIVE SUMMARY

CANNABIS MARKET OVERVIEW & PROSPECTS

Cannabis Definition & Scope

Cannabis Applications

Medical Marijuana

Adult-Use/Recreational

CBD & Other Hemp-Derived Products

Growth Opportunities

Market Threats

National Regulatory Environment

2018 Cannabis Act: Legalizing Cannabis for All Uses

Industrial Hemp Regulations

Legal Status of Cannabidiol (CBD) Products

CANNABIS PRODUCTION

Key Findings

Cannabis Supply Chain

Marijuana vs. Hemp

Production Outlook (Pounds)

Production by Cannabis Type

Production by Province

Cannabis Production Value by Application

CANNABIS CONSUMABLES & EQUIPMENT

Key Findings

Products

Demand by Product

Consumables

Equipment

Markets

Demand by Market

Commercial

Private-Use Residential

Growing Systems (Soil-Based & Hydroponic)

MARKET TRENDS BY PROVINCE

Key Findings

Cannabis Growing Market by Province

Provincial Profile: Alberta

Cannabis Growing Market Size & Regulatory Environment

Demand by Product (Consumables & Equipment)

Provincial Profile: Saskatchewan

Cannabis Growing Market Size & Regulatory Environment

Demand by Product (Consumables & Equipment)

Provincial Profile: Ontario

Cannabis Growing Market Size & Regulatory Environment

Demand by Product (Consumables & Equipment)

Provincial Profile: British Columbia

Cannabis Growing Market Size & Regulatory Environment

Demand by Product (Consumables & Equipment)

Other Provinces & Territories

Cannabis Growing Market Size & Regulatory Environment

Demand by Product (Consumables & Equipment)

APPENDIX

Scope

Definitions

Abbreviations

Freedonia Methodology

Study-Specific Methodology

Sources

Associations & Agencies

Related Studies & Reports

Macroeconomic Assumptions


List of Tables

CANNABIS MARKET OVERVIEW & PROSPECTS

Table 2-1 | 2018 Cannabis Act: Key Federal Adult-Use Provisions & Restrictions

Table 2-2 | Industrial Hemp: Number of Licenses Issued & Registered Hectares by Province, 2018

CANNABIS PRODUCTION

Table 3-1 | Canada Cannabis Production by Cannabis & Operation Type, 2018 - 2028 (million pounds)

Table 3-2 | Canada Cannabis Production by Province, 2018 - 2028 (million pounds)

Table 3-3 | Canada Cannabis Production by Application, 2018 - 2028 (billion US dollars & billion Canadian dollars)

CANNABIS CONSUMABLES & EQUIPMENT

Table 4-1 | Cannabis Growing Demand for Consumables & Equipment, 2018 - 2028 (million US dollars)

Table 4-2 | Consumables for Cannabis Growing: Demand by Product, 2018 - 2028 (million US dollars)

Table 4-3 | Equipment for Cannabis Growing: Demand by Product, 2018 - 2028 (million US dollars)

Table 4-4 | Commercial & Private-Use Residential Growers: Consumables & Equipment Demand by Market, 2018 - 2028 (million US dollars)

Table 4-5 | Commercial Market: Consumables & Equipment Demand by Product, 2018 - 2028 (million US dollars)

Table 4-6 | Private-Use Residential Market: Consumables & Equipment Demand by Product, 2018 - 2028 (million US dollars)

Table 4-7 | Cannabis Growing: Consumables & Equipment Demand by System Type & Market, 2018 - 2028 (million US dollars)

MARKET TRENDS BY PROVINCE

Table 5-1 | Consumables & Equipment for Cannabis Growing: Demand by Canadian Province, 2018 - 2028 (million US dollars)

Table 5-2 | Alberta: Cannabis Growing Supplies Demand by Product, 2018 - 2028 (million US dollars)

Table 5-3 | Saskatchewan: Cannabis Growing Supplies Demand by Product, 2018 - 2028 (million US dollars)

Table 5-4 | Ontario: Cannabis Growing Supplies Demand by Product, 2018 - 2028 (million US dollars)

Table 5-5 | British Columbia: Cannabis Growing Supplies Demand by Product, 2018 - 2028 (million US dollars)

Table 5-6 | Other Provinces & Territories: Cannabis Growing Supplies Demand by Province, 2018 - 2028 (million US dollars)

Table 5-7 | Other Provinces & Territories: Cannabis Growing Supplies Demand by Product, 2018 - 2028 (million US dollars)

APPENDIX

Table 6-1 | Relevant Industry Codes

Table 6-2 | Relevant NACE Codes

Table 6-3 | Relevant HS Codes

Table 6-4 | Abbreviations & Acronyms Used in Study

Table 6-5 | Canada: Key Indicators for Cannabis Growing Products Demand, 2008 - 2028 (billion US 2017 dollars)


List of Figures

EXECUTIVE SUMMARY

Figure 1-1 | Key Trends in the Canadian Market for Cannabis Growing Supplies

CANNABIS MARKET OVERVIEW & PROSPECTS

Figure 2-1 | Applications for Hemp

CANNABIS PRODUCTION

Figure 3-1 | Canada Cannabis Production

Figure 3-2 | Cannabis Supply Chain

Figure 3-3 | Canada Commercial Cannabis Production: Marijuana & Hemp Production, 2018 - 2028 (million pounds)

Figure 3-4 | Canada Cannabis Production by Market, 2018 - 2028 (million pounds)

Figure 3-5 | Canada Cannabis Production by Province, 2018 - 2028 (million pounds)

Figure 3-6 | Canada Cannabis Production Share by Application, 2019 (billion US dollars)

CANNABIS CONSUMABLES & EQUIPMENT

Figure 4-1 | Key Trends in Cannabis Growing Consumables & Equipment

Figure 4-2 | Consumables & Equipment Demand for Cannabis Growing, 2018 - 2028 (million US dollars)

Figure 4-3 | Consumables: Selected Product Examples

Figure 4-4 | Consumables for Cannabis Growing: Demand by Product, 2016 - 2028 (million US dollars)

Figure 4-5 | Equipment: Selected Product Examples

Figure 4-6 | Equipment for Cannabis Production: Demand by Product, 2018 - 2028 (million US dollars)

Figure 4-7 | Commercial & Private-Use Residential Markets: Product Mix Comparison, 2019 (million US dollars)

Figure 4-8 | Commercial & Private-Use Residential Markets: Cannabis Growing Supplies Demand Share by System Type, 2019 (million US dollars)

MARKET TRENDS BY PROVINCE

Figure 5-1 | Key Trends in Canadian Provincial Markets for Cannabis Growing Supplies

Figure 5-2 | Cannabis Growing Supplies Demand by Canadian Province, 2018 - 2023 (million US dollars)

Figure 5-3 | Alberta: Regulatory Highlights

Figure 5-4 | Alberta: Cannabis Growing Supplies Market & Cannabis Production, 2018 - 2028 (million US dollars & million pounds)

Figure 5-5 | Alberta: Cannabis Growing Supplies Demand Share by Product, 2019 (million US dollars)

Figure 5-6 | Saskatchewan: Regulatory Highlights

Figure 5-7 | Saskatchewan: Cannabis Growing Supplies Market & Cannabis Production, 2018 - 2028 (million US dollars & million pounds)

Figure 5-8 | Saskatchewan: Cannabis Growing Supplies Demand Share by Product, 2019 (million US dollars)

Figure 5-9 | Ontario: Regulatory Highlights

Figure 5-10 | Ontario: Cannabis Growing Supplies Market & Cannabis Production, 2018 - 2028 (million US dollars & million pounds)

Figure 5-11 | Ontario: Cannabis Growing Supplies Demand Share by Product, 2019 (million US dollars)

Figure 5-12 | British Columbia: Regulatory Highlights

Figure 5-13 | British Columbia: Cannabis Growing Market & Cannabis Production, 2018 - 2028 (million US dollars & million pounds)

Figure 5-14 | British Columbia: Cannabis Growing Supplies Demand Share by Product, 2019 (million US dollars)

Figure 5-15 | Other Provinces & Territories: Cannabis Growing Supplies Market & Cannabis Production, 2018 - 2028 (million US dollars & million pounds)

Figure 5-16 | Other Provinces & Territories: Cannabis Growing Supplies Demand Share by Product, 2019 (million US dollars)


© by The Freedonia Group, a division of MarketResearch.com