Cannabis - Canada | Statista Market Forecast

The revenue in the Cannabis market in Canada is projected to reach US$5.97bn in 2025.
It is expected to show an annual growth rate (CAGR 2025-2029) of 2.44%, resulting in a market volume of US$6.58bn by 2029.
When compared globally, the United States is predicted to generate the most revenue (US$45.35bn in 2025).
In relation to the total population figures, per person revenues of US$433.14 are generated in Canada in 2025.
Canada's cannabis market continues to evolve, with regulatory changes shaping investment opportunities in cannabis derivatives.

Definition:
The Cannabis market covers products derived from the cannabis plant used for medical or recreational purposes. These products may include dried flowers, oils, edibles, tinctures, and topicals. Depending on the regulations in each country or state, these products are provided by dispensaries, pharmacies, and/or online platforms. They may be consumed in the form of smoking, vaporizing, eating, or applying topically.

Structure:
The market includes Medical, Pharmaceutical, and Recreational Cannabis as well as CBD Products. The Medical and Pharmaceutical Cannabis markets include products used to treat conditions such as chronic pain, mental disorders, and other medical conditions. The Recreational Cannabis and the the CBD Products markets include products used for personal enjoyment or leisure purposes. All cannabis markets include various forms of cannabis such as flowers, concentrates, edibles, and topicals.

Additional information:
Market values represent the revenues generated by retail prices paid to vendors, either directly or through distribution channels (excluding VAT). Reported market revenues include spending by consumers (B2C), companies (B2B), and governments (B2G).

Company examples: Canopy Growth Corporation, Aurora Cannabis, Curaleaf Holdings, Tilray, Green Thumb Industries, Trulieve Cannabis, Verano Holdings.

Recreational Cannabis
Medical Cannabis
Pharmaceutical Cannabis
CBD Products

Illegal cannabis
Cannabis cultivated for private use

Cannabis: market data & analysis

Canada has emerged as a key player in the global Cannabis market, with a unique set of customer preferences, market trends, and local special circumstances driving its development.

Customer preferences: Canadian consumers have shown a growing preference for a wide range of Cannabis products, including dried flowers, oils, capsules, and edibles. This diversification in product preferences has been fueled by an increasing acceptance of Cannabis for both recreational and medicinal purposes. Additionally, customers in Canada are placing a strong emphasis on product quality, safety, and transparency in labeling.

Trends in the market: One of the prominent trends in the Canadian Cannabis market is the rapid expansion of retail outlets, both physical stores and online platforms, providing customers with a variety of options to purchase Cannabis products. Moreover, there is a noticeable shift towards premium and organic Cannabis products, reflecting a more sophisticated consumer base. The market is also witnessing a rise in collaborations between Cannabis companies and mainstream retailers, further normalizing the purchase and consumption of Cannabis products.

Local special circumstances: Canada's Cannabis market is heavily influenced by its regulatory environment, with the country legalizing Cannabis for recreational use in 2018. This regulatory framework has paved the way for a well-established industry with stringent quality control measures and a focus on research and development. Additionally, the presence of a robust medical Cannabis program has contributed to a culture of Cannabis acceptance and innovation in the country.

Underlying macroeconomic factors: The growth of the Cannabis market in Canada is also supported by favorable macroeconomic conditions, including a stable economy, high disposable income levels, and a well-developed infrastructure for Cannabis cultivation and distribution. Furthermore, the country's progressive stance on Cannabis legalization has attracted significant investment from both domestic and international players, driving further market expansion and innovation.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on companies' revenues, funding values and global consumer survey data. Revenues include retail, sales and taxes.

Modeling approach / Market size:

Market sizes are determined by a Top-Down approach, based on a specific rationale for each market market. As a basis for evaluating markets, we use financial reports, third-party data. Next, we use relevant key market indicators and data from country-specific associations such as tobacco spending per capita, medical product spending per capita, consumer spending and consumer spending for recreation purposes, population. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, S-Curve function, ARIMA time series model and exponential curve function.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level. GCS data is reweighted for representativeness.

This report presents a comprehensive analysis and additional information on the Health market, in a PDF format.

Cannabis or marijuana, the psychoactive drug from the cannabis plant is growing in popularity around the globe, both for recreational and medicinal uses. While there are many countries that have legalized cannabis in some capacity for medical purposes, only a handful have done so for recreational use. Even though cannabis is not federally legal in the United States, the combined legal states represent the largest market in the world. After the U.S., Canada, which legalized cannabis nation-wide in 2018 represents the next largest market. In 2021, a new coalition government was formed in Germany that indicated that the legalization of cannabis was on their agenda. Germany would be the largest legal adult-use market in Europe and would act as a test case for other countries on the continent considering the merits of legalization.