How to Start a CBD Business in Canada

CBD is the abbreviation of Cannabidiol and it is the naturally occurring content of the cannabis plant. CBD is extracted from cannabis plants and made into various products. CBD does not have a psychoactive element like that of THC which produces a "High". CBD is legal to use in Canada and has been used for treating various ailments. 

In this article, we will have a look at some important aspects necessary for starting the CBD business in Canada.

CBD Sales Statistics in Canada

In Canada retail sales of cannabis in the month of May 2020 increased at almost 4.2% growth in comparison to the month of April. But because of retail stores imbalance within Canada, a quarter of CBD sales occur in Alberta province. National cannabis retail sales touched $138.1 million for the month of July. The sale of cannabis for months between March and April 2020 was down but still strong to mark in the cannabis market. Alberta is the fourth largest province of Canada and has almost 500 licensed cannabis retail stores and represents one of the highest sales of cannabis than any other province.

Hemp Legalization in Canada

All the activities in Canada related to cannabis are illegal until you are authorized to do it. In Canada, CBD products previously came under the controlled drug and substance act with strict regulations and now Canada has passed the Cannabis Act in the year 2018 which regulates all the activities related to cannabis. In Canada, CBD products are legal for only medicinal purposes or any scientific research. It is not legal in the country to sell. Import or export cannabis until you have the proper authorization. For every CBD product compliance with the Cannabis Act is mandatory for its production, procession, distribution, and sale. 

Cannabis Regulatory Authority of Canada

For conducting CBD business in Canada you must be aware of the CBD regulatory authority in Canada which is Health Canada. This authority not only deals with CBD products but also helps CBD business to regularize within the country and its provinces in various business fields like production, distribution, and sale. Health Canada also deals with the requirement necessary for selling cannabis under the legislation of territory sales and operations of cannabis.

Why CBD Regulation is Important in Canada

The regulation set by Canada is made with the purpose to enhance the CBD market with good quality of business to generate revenue with the fastest cannabis market and also to maintain the general safety of the public. In case if the CBD products are not regulated then it would be difficult for the consumer to know about the content and concentration of CBD in the product. Regulations are also set by other countries as well to control the CBD. These legislations and rules are made in order to keep a check on CBD products whether they contain the said amount and evaluate the risks associate with the use of products. This is the reason that the rules of CBD business in Canada are quite strict and the reason behind is the elimination of illegal sale and protection of the consumer. 

Commercial Hemp Industry of Canada

Since the legalization of the cultivation of hemp in the country, the production of cannabis increased gradually. According to Health Canada data in the year 2019 hemp cultivation was on the area of 82,510 acres. The cultivation licenses issued to the CBD business owners vary from year to year. The licenses issued in the year 2006 were 560, in the year 2008 it was only 77, in 2011 it 360 and this number increased to a high level in 2018 to 1226 licenses.

Business License

For the CBD business in Canada, you must be aware of the provincial and territorial jurisdictions as the business of CBD in fields of distribution and retail require the province and territorial law to follow rather than federal laws. The selling of CBD products require authorization and licensing from the provincial government. Each province has its framework for licensing to sell CBD products. You must research thoroughly to select the niche of your business before making a business plan. 

Business Plan Requirement for Starting CBD Business

Health Canada authorizes the licenses for starting the CBD business in Canada and for this application is mandatory along with submission of required documents. One of the most important steps in getting your licenses is an effective and practical business plan which is part of the CBD license application procedure. An effective business plan helps your chance of getting the application approved. That’s why working on an effective plan is necessary.

Author - Noah Nicholls

Noah Nicholls is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for CBD-Boxes. Noah Nicholls writing relates to a range of subjects such as CBD and health.


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