Canadian Cannabis Industry Struggles to Find Financial Footing After Early Growing Pains
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Canada legalized recreational cannabis in 2018, but the industry is now struggling financially. Major companies like Aurora are diversifying and laying off workers.
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Experts cite overregulation and overproduction as reasons for the industry's problems. Canada also lacks export opportunities.
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Early on, demand exceeded supply. This led to overexpansion and now a surplus. Retail outlets are clustered and face price competition.
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The legal market is worth billions to Canada's GDP but illicit sales still claim a large share due to regulation limiting legal market appeal.
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Overall, public policy experts see legalization as a success but the industry faces sustainability challenges in the next 5 years.