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The Rising Demand For Cannabis From Veterans
With a 40% increase in the demand for cannabis from veterans, where are the opportunities?
In cannabis many companies are now struggling to compete, however, there is a category that is growing in size each year — a category within cannabis currently valued at 119.3 million CAD in Canada alone.
This is the medical cannabis reimbursements by Veterans Affairs Canada which reached an all-time high last year having reimbursed 15,369 clients, totaling 119.3 million CAD for medical cannabis products in 2020.
That’s more than a 40% increase from the previous year where 13,270 clients were reimbursed totaling 85.1 million CAD.
To put that into perspective, veterans in Canada currently account for about a quarter of Canada’s medical cannabis market by spending, however, this number shows no signs of slowing down.
The opportunity this creates
In cannabis, and really in any industry, the fastest way for a company or a brand to become nothing to no one — is to aim to be everything to everyone.
With this category now having crossed 100 million CAD, I could certainly see a brand being developed to serve this “niche” better than any other company that doesn’t understand this category of cannabis.
A majority of Canadian producers are very focused on the adult-use market right now, however, with the growing demand for cannabis through this specific channel, there will be larger producers seeking to get into this space.
Both Canopy Growth and Aurora cannabis have made moves in this market, however, without them specifically focusing on this channel I can't see them capturing and holding any meaningful market share long term.
Instead, I foresee a brand that solely focuses on this category of cannabis being the real winner — and with federal legalization looming in the United States, if this brand were to succeed in Canada, it would likely be able to expand its presence into the U.S market when this opportunity is available.
Have a great day, and I’ll talk to everyone tomorrow.
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