The licensed cannabis industry in Canada grew rapidly after legalization (late 2018) but is now showing signs of slowing growth / plateauing. From October 2018 through July 2024: production contribution rose from ~$925 million to nearly ~$7.8 billion. In the retail side (licensed stores), contribution rose steadily from about $36 million in October 2018 to about $1.02 billion by August 2025. However, starting April 2025, there were modest monthly declines in the production segment, indicating the initial growth surge has faded. The illicit cannabis market’s GDP contribution fell strongly in early years, but its decline has slowed significantly recently — potentially due to increased exports and a resurgence of some unlicensed stores regionally. November 3rd 2025: StratCann Article by: Sarah Clark
The StratCann article “How can distribution and delivery be improved?” argues that Canada’s cannabis supply chain suffers from inefficiencies caused by fragmented provincial systems and inflexible operations. Industry leaders say the lack of a national excise stamp slows interprovincial trade, while rigid ordering cycles and infrequent deliveries prevent retailers from responding to market trends. Delivery platforms also face regulatory inconsistencies that hinder smooth, compliant service.
The article calls for harmonized federal standards, more flexible ordering and delivery schedules, and better coordination across producers, distributors, and retailers to reduce costs, improve responsiveness, and keep consumers in the legal market.
