It’s one of the most popular cannabis products in Canada due to tight controls around THC limits per package, according to a new analysis by cannabis market analysis firm Earp.
The company last week published an analysis looking at consumer popularity in Canada and the United States, as well as sales, prices and inventory among food products.
The setting of edible THC limits has recently been the subject of debate between government regulators and industry players. Health Canada has ordered five licensed cannabis companies to stop selling certain edible marijuana products that are classified as “perishable” rather than edible and approved by provincial boards.
“Based on the data presented, there is a clear indication of consumer demand for food in Canada with higher overall spending power,” reads a blog post from the Headphone Analysts.
“If high total package capacity is restricted from the Canadian market, it could have a negative impact on the food category as a whole, which would reduce consumer spending and result in financial losses for producers.”
“It remains to be seen how regulators will respond and the consequences for the market,” the analysts in the report said.
Graph through headphones.
In Canada, edibles are subject to a maximum THC limit of 10 milligrams per package, but concentrates or “extracts” can contain much higher amounts of THC per package.
Some food product manufacturers in Canada are able to bypass THC limits by labeling their products as “edible.” Currently, there are a small number of brands that offer these types of products.
Three of the top ten edible brands—Aurora Drift, Indiva, and Edison Cannabis Company—have product lines that use this alternative method of producing edibles. Specifically, the top three products from each of these companies are labeled as injectable products and contain more than 10 milligrams per package.
Read more: Canadian food industry’s euphoria waning as support for legal weed grows, report shows
Read more: Men and younger generations consume the most cannabis: The Headphone report
EQ Price is a measure of price per milligram of THC. Graph through headphones.
In the cannabis industry, consumers have shown a propensity toward value, like high-volume beverages. EQ Price is the metric used to evaluate this price, which is the price per milligram of THC.
In the year In the autumn of 2022, with the introduction of extrac-based product lines, prices experienced a significant reduction, resulting in increased value that proved extremely attractive to cannabis users. This price cut has boosted sales by providing customers with affordable options.
Edible manufacturers are able to bypass THC limits by classifying their products as “perishable products.” Table through the headset.
When comparing the top three products from Indiva, Aurora Drift and Edison Cannabis Company to the rest of the Canadian edibles market, these nine products represent 17.7 percent of edible sales between January and April 2023.
For these three companies, each of their core products accounted for 41.9 percent of total sales across all categories.
The report includes data from Arizona, California, Colorado, Florida, Illinois, Massachusetts, Maryland, Michigan, Nevada, Oregon and Washington. It also includes data from the provinces of Alberta, British Columbia, Ontario and Saskatchewan.
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