The Canadian federal government made buying, use, and possession of recreational marijuana legal on October 17, 2018. Medical marijuana has been legal since 2001. Besides the boost to the cannabis industry, legalization also impacts other businesses. Some businesses have benefitted while others have taken a hit. One of the places that cannabis has significantly impacted its business game is Ontario.
Here’s how cannabis has changed the shape of business in Ontario.
1. Real Estate
A lot of large-scale cannabis producers have settled in Ontario. Cannabis businesses such as Cannabis Ontario need retail stores and warehouses leading to the rise of commercial opportunities for the real estate market. The cannabis industry also employs many workers who need homes to live in. It also leads to the growth of new restaurants. This has pushed demand for real estate causing a jump in property values in Ontario.
According to a market report, the cannabis industry has led to an increase in housing prices and home shortages in some regions. Although the cannabis industry is still at its infancy stage, its waves have already been felt in the real estate market.
2. Packaging Industry
Cannabis has had a great impact on the packaging industry. Over the next few years, the cannabis packaging industry is anticipated to witness notable growth. As the number of weed users increases, the demand for cannabis packaging also increases. The cannabis industry has influenced packaging in other industries by encouraging the use of biodegradable packaging. They are rolling out compostable and recyclable packaging.
The federal government regulates marijuana packaging requiring producers to use child-resistant, tamper-proofing, and resealable lids. They must also be opaque or transparent and should prevent contamination and ensure the product is kept dry. As a result, many packaging companies are adopting this new and more secure form of packaging for other consumer goods.
3. Pharmaceutical Industry
One way cannabis has changed the business game in Ontario is by creating serious competition for pharmaceutical businesses. Research supports the idea that some cannabinoids like CBD aid in treating and managing some health conditions. As a result, the prescription of pharmaceutical drugs that can be replaced by marijuana has gone down considerably.
The demand for drugs that treat similar conditions as cannabis has gone down with many patients preferring a natural treatment alternative. The conditions include chronic pain, nausea, and vomiting caused by chemotherapy, seizure, sleep disorders, anxiety, and depression. Users prefer marijuana because it has few to zero side effects compared to the adverse side effects of pharmaceutical drugs such as antidepressants. Cannabis is also a cheaper option. In addition, cannabis as a single medicine can treat many more conditions than any other single pharmaceutical drug.
4. Agriculture
Cannabis is creating some serious waves in agribusiness. Farmland has increased in value as cannabis growers, and food producers are competing for farming land. Farming expertise is also now highly sought after. In fact, some farmers are shifting food production and turning to cannabis growing. Recently, a 27-acre field in Southern Ontario was converted from growing asparagus to cannabis.
5. Tourism
Ontario attracts tourists, especially from the United States, who want to enjoy the cannabis experience. Many people from countries where marijuana is illegal are heading to Canada to enjoy Ontario’s scenery and cannabis. Besides international tourism, there are also local tourists.
Cannabis tourism has led to a significant increase in both private and government revenue. It has also contributed to the economic growth and the development of some businesses, such as hospitality. For instance, tourists can stay at Airbnb’s that are listed as cannabis-friendly.
6. Beauty and Wellness
Cannabis is revolutionizing the beauty and wellness industry. Cannabis extracts are added to cosmetic and wellness products. Studies show that topical application of cannabis prevents premature ageing, has microbial properties that can treat eczema and psoriasis and also slows skin and hair attenuation. It can also be used to manage acne.
The skin has receptors that allow for the cannabis extracts to be absorbed instantly. As a result, many cannabis-themed brands are rising in the beauty and wellness industries.
7. Alcohol Industry
Research shows that cannabis is safer for long-term consumption than alcohol. Therefore, people will go for a healthier option to relax after a long day and detach a bit from life’s problems. As legal cannabis becomes more available, alcohol drinking becomes less common. The beer industry is already reporting a reduction in beer sales.
The declining beer sales have led to several partnerships between alcohol and cannabis companies, such as Molson Coors Brewing Co.’s partnership with Hexo Corp and Constellation Brands Inc.’s investment in Canopy Growth Corp.
Conclusion
The cannabis industry has impacted businesses in many ways. Some businesses have grown, while some have been negatively affected. Others have formed partnerships with cannabis companies to ride on the cannabis wave. There are a lot of cannabis-themed brands that are rising in various industries offering cannabis-based products.
