June 17, 2025 | David Brown – Posted in Stratcann
As the export market evolves, medical cannabis users in countries like Germany, Australia, Israel, and the UK are increasingly developing a taste for Canada’s micro and craft growers.
While a wave of Canadian cannabis exports over the last few years is causing concern with some local producers in countries like Israel and Australia, many of the people using cannabis for medical purposes in these countries are seeking out Canadian products.
This is especially true for micro and craft products, especially from BC, says Toby Shillito, a Medical Cannabis Industry Consultant in London, England. He says that initially, a lot of the products coming into the UK medical cannabis market were priced on the lower end of the spectrum, but in the last year or so, he’s been seeing a lot more higher-quality products that are meeting a previously untapped demand.
“One opportunity for Canadian growers, especially small-batch producers, is an untapped demand for non-irradiated cannabis.”
Toby Shillito, Medical Cannabis Industry Consultant
“Up to now, we’ve either had the cheaper, which sells at about £6 a gram (~C$11) to the end user from the large glass houses in [southern Ontario], and the more expensive has been coming from the micro licences in BC, for example,” explains Shillito. “And that sells from about £9 a gram (~C$17) to the end patient.”
This also means a shift in the market from a focus entirely on high-THC flower to more balanced options, with a greater emphasis on terpenes. Shillito says some of the unique products from these micros, like small batches grown in living soil, are a hit with a certain set of patients in the UK.
One opportunity for Canadian growers, especially small-batch producers, he adds, is an untapped demand for non-irradiated cannabis. While most of the products being exported are remediated in some way—not only to meet strict standards but to ensure they can meet those standards with a longer shelf life due to the export process—it’s not necessarily a requirement.
“There’s definitely a desire from some patients here, for a host of reasons, to prefer that. Producers in Canada or elsewhere who can manage that, there will be patients who want to buy it.”
Andrew Dowling, a Director at Phytoca, an Australian cannabis company that sources products for the Australian medical cannabis market from countries like Canada, says he also sees an increasing awareness among some Australian medical patients who are interested in Canadian craft cannabis products.
Still, he notes that this represents a small portion of the overall market in Australia, which remains focused on low-cost products. This, he explains, is because the doctors who act as gatekeepers in the market tend to focus on the lowest-cost products unless patients are specifically asking for a particular brand.
“The best craft that we’ve been able to find is from Canada,” says Dowling, noting that they have sourced product from growers in provinces like BC and Saskatchewan. “The Canadian craft stuff is a part of our market, but it’s not necessarily a big part of the market. The Australian market is largely bulk smalls rather than premium flower. That will always have a place in our market, but it’s not moving the needle for most companies here.”
Jozef Spiteri, the director of marketing at Purplefarm, a cannabis producer in Fredericton, New Brunswick, which sells into the international market, says he’s seeing this trend firsthand.
“Canadian cannabis exports climbed to $218 million last year, a 36% increase,” says Spiteri. “Craft producers like Purplefarm are benefiting directly. We’re seeing international partners shift from asking about volume to asking about story: how it’s grown, who’s behind it, and whether it delivers a consistent, high-terpene experience. This shift doesn’t surprise us. It’s exactly why we’ve stayed small-batch, EU-GMP focused, and obsessive about plant morphology. The market is finally rewarding integrity.”
There is a demand in the market for not just that type of product, but for the stories behind these smaller companies.
“International buyers are no longer buying cannabis,” he adds. “They’re buying brands, genetics, and cultivation philosophies. At Purplefarm, we’ve built our company around that. We lead with transparency, curate genetics with purpose, and translate the craft grower’s mindset into consumer language. Today’s consumer doesn’t just want potency. They want precision, sustainability, and emotional resonance. That’s why we prioritize education and storytelling that reflect the same care we bring to the growroom.”
“It’s the new companies just coming on who are maybe looking at the international market as where they need to put all their energy, I think there’s some cause for concern there.”
Deepak Anand, Global Business Consultant
Not everyone has such a rosy outlook, though. Deepak Anand, an industry consultant whose work includes connecting buyers and sellers in the international cannabis market, says he is starting to see increased competition and price compression that is driving the market back towards lower-priced, high-volume products.
“Yes, there was that emerging demand, but it’s now shifted back to value products,” Anand explains. “That’s where the real demand is now. There’s a lot of price compression coming to the market.”
He notes this doesn’t mean the current demand is going away, but is more a cautionary note for newer small cannabis producers in Canada who might be tempted to put all their eggs in the export basket.
“I think the existing, established brands will be fine,” adds Anand. “It’s the new companies just coming on who are maybe looking at the international market as where they need to put all their energy, I think there’s some cause for concern there.”
Gord Nichol, the owner of Saskatchewan-based micro producer North 40, says about 95% of what he grows is currently going to the international market in places like Australia and Germany. Nichol says he has had companies in those countries actively seeking out his product, rather than needing to go looking for a buyer.
“They want our superior products in their markets,” says Nichol. “It’s where most of what I grow goes now. What they’re really looking for is consistency. High end consistency,” adding that he also isn’t saddled with high excise taxes if he is not selling in Canada.
“Without excise tax relief, I suspect this trend is going to continue. And if that means there’s less top quality weed in Canada, well then consumers are going to go elsewhere looking for it.”
Featured image via Miracle Valley
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