Packaging, Potency And Demand: How Health Canada's THC Limits May Impact Cannabis Markets

Health Canada has instructed five licensed cannabis companies to halt the sale of specific ingestible marijuana products categorized as "ingestible extracts" instead of edibles. In Canada, edibles face a maximum THC limit of 10 milligrams per package, while extracts or concentrates are permitted to have much higher THC levels in each package.

In a recent report, data firm Headset analyzed the potential impact of Health Canada's regulations on THC limits for edibles.

Key Takeaways From The Report

• Edibles are the fourth most popular product category in Canada, but they are significantly less popular compared to the US market, partly due to Canada's strict THC limit of 10 milligrams per package.
• Some Canadian edible producers have bypassed THC limitations by classifying their products as "ingestible extracts." This alternative classification has allowed them to exceed the 10 milligrams of THC per package limit.
• According to Headset, packaging plays a role in affordability, and cannabis consumers prefer value. Moreover, higher potency products dominate the market, accounting for 17.7% of all edible sales from January to April 2023.
• Headset’s researchers warned that restricting high total package potency could negatively impact the edible category, leading to reduced consumer spending and financial losses for producers.
• Researchers concluded: “Based on the data presented, there is a clear indication of consumer demand for Edibles with higher total package potency in Canada. If high total package potency is restricted from the Canadian Market, it may result in a negative impact on the Edible category overall, leading to reduced consumer spending and financial losses for producers.”

Related News

• Two Cannabis Companies Cease Production Of Certain Extracts Due To Inaccurate Classification
• Organigram Takes On Health Canada In Battle For Cannabis Ingestible Extracts Freedom

Photo by Elsa Olofsson on Unsplash.