Canada is one of the world leaders in the cannabis industry, as it was the first G20 country to legalize cannabis for recreational use in 2018. Canada has a large and diverse market for both medical and adult-use cannabis products, with thousands of licensed retailers and producers. Canada also exports cannabis to other countries, especially in Europe, where it has established partnerships and agreements with several companies and governments. Canada’s cannabis industry has contributed to the country’s economy, generating billions of dollars in sales, taxes, and investments. However, Canada’s cannabis industry also faces many challenges and uncertainties, such as oversupply, competition, regulation, and innovation. Here are some facts and figures about Canada’s cannabis industry:

According to the latest figures released by Statistics Canada, the foremost statistical agency in the country, there has been a significant increase in the total sales of legal cannabis in Canada. In the year 2022, the total revenue generated from the sale of legal cannabis reached an impressive $4.1 billion, marking a noteworthy rise from the previous year when the figures were already substantial at $2.6 billion. This data reflects the growing acceptance and normalization of cannabis use in the Canadian society, as well as the successful efforts made by the Canadian government and businesses in regulating and promoting the legal cannabis industry. Furthermore, there has been a decrease observed in the average price of legal cannabis, which further contributed to the surge in sales. In 2022, the average price per gram of legal cannabis was reported to be $10.56, a decrease from the $11.09 per gram in the previous year, 2021. This price reduction may be attributed to various factors including increased competition among sellers, improved methods of cultivation, or economies of scale achieved due to expanded operations. This information indicates a robust cannabis market in Canada that was able to expand its customer base while also reducing the price of its products. This is a significant achievement considering the nascent state of the legal cannabis industry that has been confronting various regulatory and operational challenges since its inception. The data also sheds light on the effective functioning of the legal cannabis market in Canada, given the regulatory environment aimed at eliminating black market activities. The reduction in price points towards a competitive market structure that benefits consumers, while the increase in total sales indicates the expanding market share of legal cannabis, potentially at the cost of illegal sales. Overall, the flourishing state of the cannabis market in Canada, as reflected in these figures, is a testament to the country’s successful approach towards the legalization and regulation of cannabis. The increasing sales and decreasing prices not only demonstrate the viability of the cannabis industry but also its potential to contribute significantly to Canada’s economy in the forthcoming years. In conclusion, the figures released by Statistics Canada paint a promising picture of the Canadian legal cannabis market. The significant revenue generated, coupled with the reduction in prices, points to a thriving and dynamic industry with vast potential for future growth and economic contribution. It further underlines the successful strides Canada has made in promoting a safe and regulated cannabis market that could serve as a model for other countries considering similar legislation.

According to a comprehensive report published by Deloitte, a globally recognized professional services network, the burgeoning cannabis industry made a significant contribution to Canada’s Gross Domestic Product (GDP) in 2022. The data reflects a substantial increase, as the industry contributed an immense $43.5 billion to the country’s GDP, marking a dramatic surge from the previous year’s figure of $37.9 billion. The report further provides an in-depth analysis of how the cannabis industry in Canada has evolved over the years and the factors that have contributed to this unprecedented growth. It outlines how the industry, once considered a fringe or underground sector, has rapidly transformed into a major economic player, contributing significantly to the Canadian economy. This transformation can be attributed to a series of regulatory shifts, changes in societal attitudes, and the continuous development of innovative and diverse cannabis products. As per the Deloitte report, the cannabis industry has not only enhanced the economic growth of the country but has also been a significant source of job creation. The industry, in 2022, supported approximately 415,000 jobs across the country. This statistic not only underscores the industry’s rapid growth but also its positive impact on employment rates in Canada. The jobs created range from cultivation and distribution to research and development, showcasing the diversity of opportunities within this burgeoning industry. In addition to contributing to GDP and job creation, the cannabis industry has been a vital revenue source for the government. With an estimated $11 billion generated in tax revenues in 2022 alone, this industry is a significant contributor to the nation’s public finances. These funds, in turn, can be invested back into the society, further enhancing the economic and social wellbeing of Canadians. Given these figures, it is clear that the cannabis industry has become an integral part of Canada’s economy. The continued growth and success of this sector hold promising potential for the country’s future economic prosperity. It represents a paradigm shift in the way markets, consumers, and governments perceive and interact with the cannabis industry. The Deloitte report thus suggests that the cannabis sector will continue to be an essential player in the Canadian market, contributing significantly to GDP, job creation, and tax revenues in the years to come. As Canada continues to lead the way in the global cannabis industry, it will be interesting to follow the sector’s trajectory and the potential benefits it could bring to the nation’s economy and its people. The Deloitte report, with its detailed analysis and projections, provides a valuable resource for understanding this dynamic and rapidly evolving industry.

As per the official records maintained by Health Canada, the governing body for public health in the country, there were precisely 687 licensed cultivators, processors, and sellers of cannabis in operation throughout Canada as of September 20233. These businesses have been approved by the government and are allowed to legally grow, process, and sell cannabis in Canada. This constitutes a significant shift in the nation’s stance on cannabis, reflecting a progressive attitude towards the acceptance and regulation of this once stigmatized substance. The legal cannabis industry in Canada is a thriving one, thanks to the active participation of these licensed entities. Their operations span across the country, with each province having its own set of cultivators, processors, and sellers, thereby contributing to the industry’s overall growth. It’s important to note that these licensees aren’t solely focused on the cultivation of cannabis. They encompass a broad spectrum of operations that include the processing of the raw plant into usable forms and the retail of the final product to consumers. This comprehensive approach ensures that the industry maintains a strong supply chain, from cultivation to final retail. The data from Health Canada also provides a fascinating insight into the production capacity of these licensed operators. Collectively, they are capable of producing an approximate total of 7.5 million kilograms of dried cannabis annually. This is a substantial amount, capable of supplying not just the domestic market, but also catering to international demand where the laws permit. Dried cannabis is the most traditional and commonly used form of the substance, used for both medicinal and recreational purposes. This production capacity underscores the industry’s ability to cater to its various market segments. In addition to dried cannabis, these licensed operators also have the capacity to produce approximately 1.4 million litres of cannabis oil per year. Cannabis oil is a more concentrated form of the plant and is widely used for medicinal purposes due to its potential therapeutic benefits. This form of cannabis is growing in popularity, especially among those using the substance for health and wellness purposes. The significant production capacity for this product highlights the industry’s commitment to meeting the diverse needs of its consumer base. In conclusion, the data provided by Health Canada paints a picture of a thriving, diverse, and robust cannabis industry in Canada. With 687 licensed cultivators, processors, and sellers collectively capable of producing 7.5 million kilograms of dried cannabis and 1.4 million litres of cannabis oil annually, the industry is well-positioned to cater to both domestic and international markets, while also meeting the diverse needs of its consumers. This snapshot of the industry’s current state showcases the potential it holds for future growth and contribution to the Canadian economy.

The Canadian Trade Commissioner Service has released a report detailing the exportation of cannabis products from Canada. According to the report, in 20224, Canada exported a staggering 17,845 kilograms of dried cannabis and 5,372 litres of cannabis oil. This large shipment of cannabis products was distributed among 23 countries worldwide. Taking a deep dive into the specifics of the report, the primary recipients of these exports were five countries: Germany, Israel, Australia, Denmark, and the Netherlands. These nations, each with their own unique reasons for cannabis importation, constituted the primary market for Canada’s cannabis exports. Germany, leading the list, seeks to bolster its medical marijuana program. The country has been working diligently to establish a robust medical cannabis sector and relies heavily on imports until it can develop a domestic production capability. Similarly, Israel, known for its progressive stance on cannabis research, imports a significant amount of its cannabis for pharmaceutical and research purposes. Australia, on the other hand, has been boosting its domestic medical cannabis industry and uses imports to supplement its domestic supply and meet the growing patient demand. Denmark, a country with a relatively new medical cannabis program, depends on imports to meet the needs of patients while it works on establishing a domestic supply chain. Lastly, the Netherlands, despite being known for its liberal cannabis policies, particularly in Amsterdam, has a tightly regulated medical cannabis program. The country imports a significant portion of its medical cannabis to ensure it can adequately supply its patients. This extensive and intricate network of international trade in cannabis products is a testament to Canada’s burgeoning cannabis industry. The country has established itself as a global leader in cannabis cultivation and production, supplying nations worldwide with high-quality dried cannabis and cannabis oil. The large number of kilograms and litres exported indicates a thriving industry within Canada. It highlights the country’s efficient cultivation and processing capabilities and its robust regulatory framework that ensures product quality and safety. As countries worldwide continue to grapple with the complexities of cannabis legalization and regulation, Canada’s success in this area offers a potential blueprint for others to follow. This report, therefore, provides not just an overview of Canada’s cannabis exports, but also offers valuable insights into the global cannabis market. It sheds light on the diverse reasons countries import cannabis products and the pivotal role Canada plays in meeting this international demand. As such, it underscores the significance of the Canadian cannabis industry in the global arena and its potential for future growth.

Investopedia, a leading global source of financial content on the web, has compiled a list of the most significant players in Canada’s booming cannabis industry in 2022. The list is led by Tilray Brands Inc., a front-runner in the cannabis sector with a staggering $2.3 billion in annual revenue. This colossal figure is emblematic of the seismic shift in societal attitudes towards cannabis and its growing acceptance as a legitimate commercial product. Tilray Brands Inc. stands out from the crowd not only due to its sizeable revenue but also its robust business model. They have strategically positioned themselves as a global pioneer in the research, cultivation, production, and distribution of medical cannabis and cannabinoids. Their commitment to consistent quality, innovation, and patient safety has solidified their position at the top of this list. Following closely behind Tilray Brands Inc. are other significant players like Sundial Growers Inc., Canopy Growth Corp., Aurora Cannabis Inc., and Cronos Group Inc. Each one of these enterprises has carved out a niche for themselves in this rapidly evolving industry. Sundial Growers Inc., for example, focuses on crafting high-quality cannabis products using state-of-the-art indoor facilities. On the other hand, Canopy Growth Corp., one of the world’s largest cannabis companies, prides itself on its diverse portfolio of brands and curated cannabis varieties in dried, oil, and Softgel capsule forms. Alongside these market giants, several other companies have made a mark by demonstrating growth and potential. These include Aphria Inc., HEXO Corp., Innovative Industrial Properties Inc., Organigram Holdings Inc., among others. Aphria Inc., for instance, is recognized for its low-cost production of safe, clean, and pure pharmaceutical-grade cannabis at scale. HEXO Corp. has differentiated itself by creating an innovative product line that offers a curated experience for its users. Other companies that made the list are The Green Organic Dutchman Holdings Ltd., MediPharm Labs Corp., Auxly Cannabis Group Inc., Corbus Pharmaceuticals Holdings Inc., and CannTrust Holdings Inc. These are followed by PharmaCielo Ltd., Aleafia Health Inc., Emerald Health Therapeutics Inc., Zynerba Pharmaceuticals Inc., Zenabis Global Inc., and Khiron Life Sciences Corp. Each of these companies has contributed to shaping the Canadian cannabis industry in their unique ways, illustrating the diversity and potential of this burgeoning sector. With Canada’s decision to legalize recreational marijuana use, it has spurred a boom in the cannabis industry, and the companies listed above have thrived in this new market. These companies’ success undoubtedly reflects the dynamic nature of this evolving industry and the potential it holds for the future. From small-scale artisanal companies to global conglomerates, the Canadian cannabis industry offers a diverse range of opportunities and challenges. It will be fascinating to watch how these companies continue to evolve and shape the industry in the coming years.

Learn more:

1. globalnews.ca

2. cbc.ca

3. investopedia.com

4. ey.com

5. forbes.com

Canada’s cannabis industry is one of the most advanced and developed in the world, but it also faces many challenges and uncertainties that affect its growth and profitability. Some of the main challenges are:

Price compression: The prices of legal cannabis products have dropped significantly in the past few years, due to oversupply, competition, and taxation. This has reduced the profit margins and revenues of cannabis producers, who also have to deal with rising costs of production and compliance1.

Taxes and regulatory fees: Cannabis products are subject to high excise taxes and licensing fees, which increase the cost of doing business and reduce the competitiveness of the legal market. The taxes and fees are also based on a fixed amount per gram or milligram of THC, which does not reflect the actual market value or quality of the products12.

Oversupply: The cannabis industry has seen a rapid expansion of production capacity and new entrants, which has resulted in an oversupply of product in the market. This has created a glut of inventory, which lowers the prices and increases the risk of spoilage and waste12.

Black market competition: The illicit cannabis market still accounts for a large share of the cannabis consumption in Canada, as it offers lower prices, higher potency, and more variety than the legal market. The black market also avoids taxes and regulations, which gives it an unfair advantage over the legal market12.

Evolving consumer demands: The cannabis consumers are becoming more sophisticated and discerning, as they seek more diverse and innovative products, such as edibles, beverages, vapes, and concentrates. The cannabis producers have to adapt to these changing preferences and needs, while also complying with strict rules on packaging, labelling, advertising, and quality control12.

These are some of the major challenges facing Canada’s cannabis industry, but there are also other factors that affect its performance and outlook, such as regulation changes, innovation opportunities, international markets, and social acceptance. The cannabis industry is constantly changing and developing, and it requires a flexible and resilient approach to overcome its difficulties and seize its potential.

1. bdo.ca

2. ey.com

3. ey.com