Canadian adult-use cannabis sales reached C$5.5 billion in the fiscal year ending 31 March 2025, a 6.1% increase on the prior year, according to new data from Statistics Canada, though the pace of growth continued to slow for the third consecutive year.
This single-digit increase, which represents an increase of around C$300m compared to the previous year, marks another consecutive year of slowing growth following a 11.6% increase in 2023/24 and a 15.8% increase in 2022/23.
The average retail price of cannabis also fell 1.1% between March 2024 and March 2025, as the market saturation and price compression continued to intensify competition among licensed producers.
On a per-capita basis, Canadians of legal purchasing age spent an average of C$167 on recreational cannabis during the year, but this was subject to significant regional variations.
Yukon recorded the highest per-capita spend at C$384, while Quebec remained the lowest at C$105, a gap largely attributable to the province’s restrictions on product formats, including edibles, vapes, and concentrates.
Dried cannabis flower retained its position as the dominant product category, accounting for 59.7% of total sales, down from 61.4% the prior year. Sales of dried flower, however, which includes pre-rolls, rose 3% year-on-year to C$3.3bn
Meanwhile, other formats appeared to be closing the gap. ‘Inhaled Cannabis Extracts’, a category including vape pens, hash, wax, and rosin, grew 12.8% to C$1.7bn and now represent 31.1% of total sales, up from around 29% in 2023/24.
It was the fastest-growing major category in the market. Ingested cannabis extracts (oils, capsules, and sprays) rose 7% to C$170.4m, while cannabis beverages increased by nearly 9% to C$91.6m. Cannabis edibles bucked the broader growth trend, declining 2.2% to C$219 million with market share slipping from 4.3% to 4%.
Federal and provincial governments collected a combined C$2.5bn from recreational cannabis in 2024/25, an 11.5% increase year-on-year and equivalent to C$0.45 for every C$1 spent by consumers. That compares with C$0.51 per C$1 spent on alcohol.
Total alcohol sales in Canada reached C$25.8bn in 2024/25, generating C$13.1bn in government revenue, but alcohol sales declined 4.2% over the same period, the sharpest annual fall since Statistics Canada began tracking the series in 2004. On a per-capita basis, Canadians consumed an average of 8.0 standard drinks per week, down from 8.7 the previous year. Cannabis, by contrast, continued to grow.
Since legalisation in October 2018, Canada has collected more than C$5.4bn in federal cannabis excise taxes, with C$4.2 billion of that redistributed to the provinces and territories.
More recent data points to continued momentum into the 2025 calendar year. According to reporting by Statistics Canada, December 2025 retail cannabis sales hit C$503.7m, a new monthly record and a 5.3% sequential increase from November. Full calendar year 2025 sales totalled C$5.62bn, up 4.1% on 2024’s C$5.39bn.
Provincial performance in December was mixed. British Columbia recorded 22% year-on-year growth, while Quebec was up 10%. Ontario and Alberta, the two largest markets by population, each posted modest annual declines of 4% and 1%, respectively, though both showed sequential month-on-month gains.
The post Canada’s Cannabis Retail Market Reaches C$5.5bn in 2024/25, But Growth Slowing appeared first on Business of Cannabis.
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This single-digit increase, which represents an increase of around C$300m compared to the previous year, marks another consecutive year of slowing growth following a 11.6% increase in 2023/24 and a 15.8% increase in 2022/23.
The average retail price of cannabis also fell 1.1% between March 2024 and March 2025, as the market saturation and price compression continued to intensify competition among licensed producers.
On a per-capita basis, Canadians of legal purchasing age spent an average of C$167 on recreational cannabis during the year, but this was subject to significant regional variations.
Yukon recorded the highest per-capita spend at C$384, while Quebec remained the lowest at C$105, a gap largely attributable to the province’s restrictions on product formats, including edibles, vapes, and concentrates.
Dried cannabis flower retained its position as the dominant product category, accounting for 59.7% of total sales, down from 61.4% the prior year. Sales of dried flower, however, which includes pre-rolls, rose 3% year-on-year to C$3.3bn
Meanwhile, other formats appeared to be closing the gap. ‘Inhaled Cannabis Extracts’, a category including vape pens, hash, wax, and rosin, grew 12.8% to C$1.7bn and now represent 31.1% of total sales, up from around 29% in 2023/24.
It was the fastest-growing major category in the market. Ingested cannabis extracts (oils, capsules, and sprays) rose 7% to C$170.4m, while cannabis beverages increased by nearly 9% to C$91.6m. Cannabis edibles bucked the broader growth trend, declining 2.2% to C$219 million with market share slipping from 4.3% to 4%.
Federal and provincial governments collected a combined C$2.5bn from recreational cannabis in 2024/25, an 11.5% increase year-on-year and equivalent to C$0.45 for every C$1 spent by consumers. That compares with C$0.51 per C$1 spent on alcohol.
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Total alcohol sales in Canada reached C$25.8bn in 2024/25, generating C$13.1bn in government revenue, but alcohol sales declined 4.2% over the same period, the sharpest annual fall since Statistics Canada began tracking the series in 2004. On a per-capita basis, Canadians consumed an average of 8.0 standard drinks per week, down from 8.7 the previous year. Cannabis, by contrast, continued to grow.
Since legalisation in October 2018, Canada has collected more than C$5.4bn in federal cannabis excise taxes, with C$4.2 billion of that redistributed to the provinces and territories.
More recent data points to continued momentum into the 2025 calendar year. According to reporting by Statistics Canada, December 2025 retail cannabis sales hit C$503.7m, a new monthly record and a 5.3% sequential increase from November. Full calendar year 2025 sales totalled C$5.62bn, up 4.1% on 2024’s C$5.39bn.
Provincial performance in December was mixed. British Columbia recorded 22% year-on-year growth, while Quebec was up 10%. Ontario and Alberta, the two largest markets by population, each posted modest annual declines of 4% and 1%, respectively, though both showed sequential month-on-month gains.
The post Canada’s Cannabis Retail Market Reaches C$5.5bn in 2024/25, But Growth Slowing appeared first on Business of Cannabis.
Continue reading...
