In the 2023-2024 fiscal year, Canada exported approximately 218 million Canadian dollars ($189 million) worth of medical marijuana products for commercial and scientific use.
While Canadians
buy cannabis online and in physical stores due to its quality, many nations also consider this country as a top source for their cannabis needs.
Key Takeaways:
- Canadian medical marijuana exports hit CA$218 million, a 36% increase from the previous year.
- Canada's export strategy emphasizes the diversity of products and targets nations looking for high-quality supplies.
- Locally, most Canadians use weed recreationally rather than medically, with adults aged 18 to 24 being the most frequent users.
Canada's Current Market Overview
EY Canada's 'State of the Industry' report highlights that Canadian weed sales have grown double-digit. It rose from $1.2 billion in 2019 to $4.7 billion in 2022.
Canadian marijuana is also witnessing a dynamic shift marked by robust international growth. Medical weed exports hit CA$218 million (USD 189 million), a 36% increase from the previous year. This highlights a strategic shift towards international markets for increased profitability.
The data from the Health Canada regulator shows brisk and consistent growth in the export sector. In previous years, the revenue of exports reported by licensed producers (LPs) was:
- CA$8 million in 2019-2020
- CA$39 million in 2020-2021
- CA$107 million in 2021-2022
- CA$218 million in 2023-2024
Canada’s Cannabis Exports Data
Canada now leads the global market in marijuana sales. Although producers from countries such as Australia, Colombia, Israel, Jamaica, and Portugal have attempted to compete, they have encountered various challenges in exporting significant quantities.
Other exporters' challenges have allowed Canadian LPs to flourish and increase sales to neighbouring countries. Besides these challenges, several factors make Canadian weed a sought-after product.
"
Canada's reputation for producing high-quality weed products at competitive prices has positioned it as a preferred supplier in the global market," says Deepak Anand, principal of ASDA Consultancy Services in Surrey, British Columbia.
The international cannabis trade currently restricts itself to medical distribution, clinical research, and compassionate access. Importing nations issue permits that comply with their regulations, while exporting companies must obtain approval from their national health departments and export authorities.
Product Diversity and Innovation
The country's export strategy emphasizes the diversity of pot selection, including dried flowers, oils, extracts, edibles, and beverages. This product diversity allows LPs to cater to other nations' consumer preferences and needs. Innovation in product development, such as new formulations and delivery methods, enhances competitiveness.
Partnerships and Distribution Channels
LPs work with international distributors, pharmaceutical companies, and research institutions to enter new markets and distribute their products. These partnerships help them understand local regulations, set up supply chains, and connect with healthcare professionals and patients.
Target Markets and Market Access
Canada is finding ways to target countries looking to join the cannabis industry. They cater to countries that need high-quality selections for research or medicinal purposes.
Key markets include European countries, such as Germany and the Netherlands, where medical marijuana programs are established and expanding—other regions, including parts of Latin America and Oceania, also present opportunities as regulatory landscapes evolve.
Israel is currently the largest importer of flower from Canada. In 2020, Germany imported over four tons of flower and nearly five kiloliters of extracts and oil from Canada. Countries with emerging industries, such as the UK, Argentina, and Malta, received smaller amounts.
Most (83%) of this value came from flower sales, though oil sales likely occurred outside of these figures due to irregular reporting by exporters.
What Makes Canada a Key Player in the Marijuana Market
For over five years, Canadians have been able to buy pot without any issues as long as they are of legal age. This progressive approach has helped the industry grow, and the country keeps finding new ways to boost sales.
Weed use steadily increased over the 30 years before regulation. The use rate more than doubled from 1985 to 2017, from 5.6% to 14.8%.
After the said regulation, Canada became the first major industrialized country to provide approved access to weed. In 2021, 22% of Canadians aged 15 years and older reported using pot in the past year. The use rates were higher in British Columbia, Alberta, Ontario, Nova Scotia, and Prince Edward Island.
Caters to All Age Group
In 2023, 10% of Canadians aged 16 and older reported using pot for medicinal purposes, a decrease from 13% in both 2018 and 2022.
Regarding the frequency of use, the most common response was less than once per month (28%), an increase from 2018 and 2022. This was followed by daily use (27%), a decrease from 2018, and 2 to 3 days per month (15%), which remained consistent over time.
Regarding recreational use, the number is increasing among the younger age group. In 2023, over one-third of adults aged 18 to 24 (38.4%) and 25 to 44 (34.5%) reported using pot in the past year, compared to just 15.5% of adults aged 45 and older.
About 1 in 10 adults aged 18 to 24 (8.7%) and 25 to 44 (10.3%) used daily or almost daily in the past year, while only 4.8% of adults aged 45 and older reported such frequent use.
Market Size and Demand
The local pot market is substantial, driven by medical and recreational consumers. The authorization of recreational weed expanded the potential customer base significantly. It created a higher demand for various items, including dried flowers, oils, edibles, and concentrates.
| Product Type |
Medical |
Recreational |
Both |
| Dried Flower or Leaf |
28% |
63% |
75% |
| Edibles |
42% |
54% |
65% |
| Vape Pens |
18% |
34% |
45% |
| Beverages |
9% |
19% |
29% |
| Oil |
53% |
18% |
36% |
| Hashish |
9% |
15% |
28% |
| Concentrate |
9% |
9% |
22% |
| Topical |
29% |
6% |
24% |
Innovation
The Canadian pot market has fostered innovation in cultivation techniques, product development, and distribution channels.
Licensed producers (LP) have invested in advanced cultivation, extraction, and manufacturing technologies to enhance product quality and diversity.
LPs have invested in the latest cultivation facilities and practices. This includes controlled environment agriculture (CEA), such as indoor and greenhouse cultivation. It allows precise control over growing conditions like lighting, humidity, and nutrient levels. These practices result in higher-quality pot with desirable cannabinoid and terpene profiles.
Innovative Extraction Techniques
LPs have adopted advanced extraction methods to produce weed concentrates and oils. Techniques like CO2 extraction and ethanol extraction effectively preserve the plant's natural compounds, which results in extracts that retain the cannabinoids and terpenes in their natural ratios.
Cannabis Selection with High-Quality Worth for Local and International Use
The industry not only produces high-quality selections for international markets but also offers premium ganja for local customers. The country's international and domestic success can be due to manufacturers, or LPs, focusing on adding value to their production.
| Product |
Content |
Form |
| OneStop – Tutti Frutti 1:1 Gummies |
250mg THC / 250mg CBD |
Edible (Gummies) |
| OneStop – THC Distillate Disposable Vape – Hybrid – 3ml |
93%-95% THC |
Vape |
| Cap Junky |
25 THC/ 0.3 CBD |
Flower Strain |
| Full Melt Hash – Chiquita Banana |
2g |
Concentrate (Hash) |
| Premium Shatter – Acapulco Gold |
2g |
Concentrate (Shatter) |
| Cannamo – CBD Isolate Lion Balm |
1500mg |
Topical |
Growing Cannabis Industry In and Outside
The demand for marijuana extends beyond local markets, with many countries turning to Canada for high-quality flower, edibles, etc. Innovative strategies and a focus on new markets have helped the country thrive internationally. Strict regulations ensure the production of quality products, which makes Canadian marijuana sought after. The growing export industry boosts the country's economy and increases the availability of products for local users and buyers.
Frequently Asked Questions
Why is Canada ahead of other countries when it comes to exportation of marijuana?
LPs are working to meet the growing demand from countries seeking ganja for medicinal and research purposes. Local producers adhere to strict regulations to ensure high-quality flower that satisfy international needs. These producers are adopting new techniques to diversify their offerings. As global preferences shift from traditional flower to products like edibles and vapes, producers are evolving their methods to keep up with these changes.
What type of flower do local producers export?
Industry insiders suggest that the rising quality boosts exports, with an increasing share coming from small-batch cultivation.
Phil Campbell, CEO of Herbal Dispatch—a marijuana marketplace serving medical, recreational, and export markets—facilitates international shipments of medical weed. While large producers supply mass-produced greenhouse ganja, the best quality comes from craft producers.
Is the growing export demand after local supply?
No. Locally, there is no shortage of cannabis; the increasing number of producers and growing demand among Canadians ensure a steady supply. International demand does not also affect local prices.
