Canada’s cannabis sales surpass $5.6 billion in 2025

Cannabis Legalization in Canada

Medical cannabis was first legalized in Canada in 2001, allowing patients to grow their own or buy from the government. Adult-use cannabis was legalized on October 17, 2018, and Canada became the second country in the world to fully legalize cannabis.

Cannabis legalization in Canada

Canadian Cannabis Market Statistics

Medical Cannabis

Prior to the legalization of recreational cannabis, the medical cannabis market in Canada grew steadily. The country saw an average of a 10% increase each month in the number of Canadian patients signed up to receive medical cannabis. Sales of dried cannabis grew steadily at 6% a month. Sales of cannabis oil rose by 16% a month.

Following recreational cannabis legalization, recreational cannabis sales of both dried flower and oil grew at a much faster pace than medical sales. Liters of cannabis oil sold to recreational consumers more than tripled from October 2018 to September 2019 while sales to medical consumers edged up by only close to 8%. Similarly, kilograms of dried flower sold to recreational consumers nearly tripled while sales to medical consumers even fell by around 37% in the same timeframe. This reflects the shift of medical cannabis users to the recreational market due to more convenient and easy access. Total sales of dried cannabis in Quarter 3, 2019 increased by 32.4% compared to Quarter 2, 2019 (from 28,394 kilograms to 37,588 kilograms), while total sales of cannabis oil increased by 15.7% (from 27,692 litres to 32,032 litres) during the same period.

Interestingly, while for most product forms recreational cannabis users account for the majority of sales, when it comes to topical products, medical cannabis users contribute for more than half of total sales. This is likely due to topical products being less psychoactive and more appropriate for targeted application to provide relief for physical ailments.

After hitting a peak of $603 million in 2019-20, medical cannabis sales started to fall as medical cannabis consumers began to switch to sourcing cannabis from licensed adult-use retail stores. Medical cannabis patients spent $224 million on cannabis in the second half of 2021, down from $294 million in the second half of 2020 and 29% lower than the record $316 million spent in the final six months of 2017, according to MJBizDaily. Canada’s medical cannabis market totaled $443 million in 2021-22 (April 1-March 31) and fell to $409 million in 2022-23 and $355 million in 2023-24.

Medical Cannabis Export

While Canada’s domestic medical cannabis sales have been falling, the value of Canada’s medical cannabis exports have been rapidly increasing over the past few years. Exports nearly tripled from $39 million in 2020-21 to $107 million in 2021-22. After hitting $160 million in 2022-23, they rose further to approximately $218 million, bringing the country’s total medical cannabis industry value to an estimated $573 million.

By balancing superior product quality with affordable pricing, Canada has secured a leading role as a global cannabis exporter. For instance, Germany’s major legislative reforms in 2024 significantly boosted its medical cannabis market and led to their medical cannabis imports more than doubling from 2023 to 2024. Canada remains the largest cannabis importer for Germany, providing nearly half of its total imports as of Q3 2025. As more countries worldwide choose to legalize medical cannabis or expand their existing regulations, it is expected that Canada will also benefit from a rising demand for its medical cannabis products.

Recreational Cannabis

The federal government legalized recreational cannabis on October 17th, 2018, and sales at cannabis stores in the first three months after legalization totaled $156.3 million according to data from Statistics Canada. In 2019, they reached nearly $1,190 million. The legalization of edibles, vapes, and topicals in late 2019 gave a further boost to the Canadian recreational cannabis industry and in 2020, sales more than doubled to $2,625 million. Annual sales continued to grow, surpassing $3,900 million in 2021, $4,510 million in 2022, and $5,050 million in 2023 with monthly sales consistently hitting the $400 million+ mark from March 2023. Recreational sales for 2024 totaled $5,213 million and exceeded $5.6 billion in 2025.

According to Statistics Canada, total retail cannabis stores count hit a new high of 3,332 in 2023, representing an increase of 165 stores in the first half of 2022.  As of January 2024, there were more than 3,600 retail stores in the country, with 60% of Canadians living within 10 km of a cannabis store. As of June 2025, there were 3,761 retail stores in Canada. While online cannabis retail ensures access to all Canadians regardless of proximity to a physical store, accessibility continues to improve as more stores open across the country.

Starting Oct. 17, 2019, edibles, topicals and extracts were allowed to be legally sold. Following the legalization of additional product forms – edibles, topicals, and extracts (including vapes) – sales trends for the different categories started to change. While dried cannabis flower still accounts for 50% of all cannabis sales (according to June 2025 data from Canada Health), its share is significantly down since May 2020 when it accounted for 81% of all sales. Meanwhile, extracts and edibles each had a 25% share of total sales in June 2025 when in July 2020 they accounted for only around 13% and 14%, respectively. This demonstrates consumers’ growing interest in edible and extract product forms due to the precise dosing and convenience they offer.

Canadian Cannabis Market Forecast

The total cannabis market in Canada is estimated to generate up to $7 billion in sales according to Deloitte’s forecast. Meanwhile, other cannabis industry analysts predict that Canada’s cannabis industry can ultimately total up to $8.7 billion. If the market meets this prediction, Canada’s legal cannabis market would be comparable in size to its hard liquor or wine market.

The cannabis market is poised to have a major effect overall on Canada’s economy. One study from Deloitte Private pegged the potential economic impact of legalized recreational cannabis in Canada at more than $22 billion, including transportation, licensing fees and security.

Source: cannabusinessplans.ca

Canada Cannabis Market Infographics

How Can Cannabusinessplans Templates Help Start or Grow Your Cannabis Business?

The majority of cannabis licensing programs require the submission of a business plan as part of the application for a cannabis license. Even if it is not mandated by law, a business plan is essential for securing funding and assisting an applicant in understanding how much money it will take to start a cannabis business and how much profit it could make.

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Cannabis Micro Cultivation Business Plan Sample, Canada

Cannabis business plan templates for Canada can be found at cannabusinessplans.ca.