After the lifting of restrictions on cannabis sales in Canada in October 2018, cannabis sales for companies targeting the recreational markets spiked.
However, now eight months on into the new era of liberal marijuana policy in the great white north, sales have actually decelerated and companies like Aurora Cannabis (ACB) , Cronos (CRON) , Tilray (TLRY) , and Canopy Growth (CGC) are feeling the impact in quarterly reports.
That is an issue as many companies chart out substantial growth rates from the recreational market. While the ideas for medical use may be insulated from the elasticity of recreational demand, the $200 billion plus market value many analysts are assigning surely expects a pick up in recreational use that is proving difficult to map.
While the trend less than one year into legal sales may surprise many investors, the turn in the trend could have been expected by social scientists.
“We confront the paradoxical reality