THC BioMed Intl Ltd. announced that it has submitted its application to Health Canada to amended its licence to add sales of cannabis edibles, topicals and extracts.
“THC BioMed has always been focused on producing quality products and we are entering the segment of cannabis edibles, topicals and extracts with the same approach,” said John Miller, CEO of THC BioMed.
The Canadian market for cannabis edibles, topicals and extracts is worth an estimated $2.7 billion per year, with edibles representing more than half that amount, according to a report from Deloitte. This spending is expected to be in addition to the approximately $6-billion estimated domestic market for recreational and medical cannabis.
Deloitte estimates that roughly $1.6 billion will be spent on edibles per year in Canada, followed by cannabis-infused beverages at $529 million and topicals at $174 million. Spending on concentrates is expected to hit $140 million, followed by tinctures at $116 million and capsules at $114 million.
In its report, entitled “Nurturing new growth,” released in May 2019, Deloitte states that its view is that edibles will prove to be a more successful segment in Canada, in part because the Canadian market is currently more scalable than the U.S. market. The report states that edibles will “make cannabis more accessible to a wider group of Canadians, many of whom will appreciate edibles’ discreetness and lack of surrounding stigma.”
While the sale of cannabis edibles, topicals and extracts will be legal in Canada for those with the required licences and approvals. Health Canada has indicated that cannabis products will not be made available to the public for purchase until at least mid-December 2019. The regulations place a limit of 10 milligrams of THC per discrete unit for edibles and extracts, while 1,000 milligrams per package for cannabis topicals will be permitted. The product’s packaging must be plain and child-resistant, and display the standardized cannabis symbols along with a health warning message. In order to prevent food-borne illness and cross-contamination, the production of food and cannabis must be done in completely separate facilities.
For specific cannabis edible, topical or extract products, THC will submit applications for product approvals to Health Canada and be subject to the 60-day notice period for new cannabis products becoming available for sale, pursuant to Appendix I of Canada’s updated Cannabis Licence Management Guide.