Canadian Cannabis Market – Business Plan Templates Europe

Canada’s cannabis sales are estimated to have topped $5 billion for the second year in a row

Cannabis Legalization in Canada

Medical cannabis was legalized in 2001, when authorized patients were able to obtain a license to grow cannabis at home, and on 7th of June 2018, Canada’s senate voted to legalize recreational cannabis.

Cannabis legalization in Canada

Canadian Cannabis Market Statistics

Medical Cannabis

Canadian cannabis market has been steadily growing prior to the legalization of recreational cannabis. The country has seen an average of a 10 percent increase each month in the number of Canadian patients signed up to receive medical cannabis. The sale of dried cannabis has grown steadily at 6 percent a month, and the sale of cannabis oil has been growing by 16 percent a month.

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 $449 million in 2021-22 (April 1-March 31) and decreased to $409 million in 2022-23. The number of medical client registrations with federally licensed sellers fell almost 14% from 213,099 in March 2023 to 183,909 in December 2023. Canada’s medical cannabis industry was worth an estimated $573 million in 2023-24, consisting of $355 million in domestic sales and approximately $218 million in exports.

Medical Cannabis Export

Canada is a major exporter of medical cannabis with CA$218 million worth of medical cannabis products exported in the 2023-24 fiscal year. This is an increase of around 36% from the CA$160 million worth of exports made in the previous fiscal year. Analyzing the changes throughout calendar years, there has been a consistent and fast increase in the kilograms of dried cannabis exported from Canada, demonstrated through a 118% rise from 2021 to 2022 and an 81% increase from 2022 to 2023.

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 $151.5 million and reached $1,186 million in 2019, $2,625 million in 2020, $3,922 million in 2021 and $4,510 million in 2022, and in 2023, according to Statistics Canada, they exceeded $5 billion.

For the first 10 months of 2024, sales were $4,278.2 million.

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. 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.

Cannabis industry analysts predict that Canada’s cannabis industry ultimately would total between $4.9 and $8.7 billion. If the market meets prediction, Canada’s legal cannabis market would be comparable in size to its hard liquor or wine market.

Source: cannabusinessplans.ca.