Canada’s legal cannabis industry contributed nearly $7.7 billion to Canada’s GDP in 2023, according to the most recent figures from Statistics Canada.
The majority of this was cannabis production, at nearly $6.8 billion, while retail added almost $900 million on top of that.
That number grew in the first four years of legalization but declined somewhat in 2022. In 2022, the legal cannabis market contributed just under $8 billion to Canada’s GDP.
The illicit cannabis market added another nearly $2.7 billion to Canada’s GDP in 2023, with another $892 million from illicit cannabis retailers, both online and brick-and-mortar.
In comparison, legal cannabis’ contribution to Canada’s GDP surpassed that of breweries, wineries, and distilleries. In 2023, breweries contributed just over $3 billion to Canada’s GDP, while wineries and distilleries contributed just over $1 billion. Legal cannabis stores alone contributed nearly as much to the GDP in 2023 as wineries and distilleries combined.
Licensed cannabis production’s contribution to Canada’s GDP surpassed that of gold and silver ore mining, local credit unions, furniture and related product manufacturing, the postal service, gambling industries, potash mining, dairy product manufacturing, coal mining, radio and television broadcasting, electronics and appliance stores, grain and oilseed milling, fishing, hunting and trapping, and ship and boat building, just to name a few.
Aurora Cannabis Inc. has announced the launch of its first German-cultivated medical cannabis product under the brand IndiMed.
Produced at Aurora’s EU-GMP facility in Leuna, Germany, one of only three licensed cannabis production facilities in the country, the new brand will be available for Germany’s expanding medical cannabis patient base.
“Aurora is proud to deliver to the rapidly growing German market our first domestically produced medical cannabis product—a significant step forward since Germany’s move to decriminalize cannabis earlier this year,” says Michael Simon, President, Aurora Europe (Interim).
“As one of three facilities licensed to cultivate in Germany, we are uniquely positioned to offer domestic product from our EU-GMP facility in Leuna, Germany, which operates within Aurora’s global manufacturing network. It is through our expertise in cultivation and deep commitment to science and innovation that we introduce IndiMed to the German patients.”
Aurora was not able to immediately respond to a request for more details about the harvest, such as total volume.
Cultivated under GACP and EU-GMP guidelines, Island Sweet Skunk is the new product from Aurora’s IndiMed brand, listed as having 20% THC and less than 1% CBD.
In February 2024, Germany passed the German Medical Cannabis Act, expanding the country’s medical cannabis laws.
Aurora is one of three companies with a cannabis production licence in Germany. The American cannabis company Tilray, which operates in Canada, the United States, Europe, Australia, and Latin America, was the first to receive a commercial cannabis production licence in the country in 2024. Aurora and the German company Demecan were also licensed for production in the country.
In November 2024, Tilray Medical announced that it had launched its first commercially-grown medical cannabis flowers from its Aphria RX GmbH facility in Germany.
In July 2024, Aurora announced it was expanding its footprint in the emerging German cannabis market when the company was granted two licences by Germany’s Federal Institute for Drugs and Medical Devices (BfArM) under the country’s new Medical Cannabis Act (MedCanG).
Aurora’s medical cannabis production facility in Leuna, Saxony-Anhalt, in eastern Germany, has been operating since 2021. The facility cultivates approximately 1,000 kg of cannabis flower annually for the medical supply chain. In addition to Canada and Germany, Aurora operates in the UK, Poland, and Australia.
Germany is being eyed by large cannabis companies like Aurora and Tilray as it’s seen as a gateway into the expanding European market and is considered the largest medical cannabis market in Europe, with a population of 83 million, more than double that of Canada.
Tilray’s Aphria RX has been present in the medical cannabis space in Germany since March 2019, when the company was awarded a licence from the German Federal Institute for Drugs and Medical Devices (the “BfArM”) to cultivate medical cannabis in the country.
Other European countries, including Switzerland, Spain, France, the Czech Republic, Malta, the Netherlands, and Ukraine, are also considering or in the process of implementing various cannabis markets being eyed by companies like these.
Germany legalized cannabis for non medical purposes this past March, with the law coming into effect in stages. On April 1, personal possession and cultivation became legal. On July 1, the country began allowing cannabis growing clubs. However, the country does not allow the sale of cannabis except for medical purposes. That bill also made amendments to the country’s medical cannabis laws (MedCanG), paving the way for Tilray’s most recent announcement.
Germany first legalized cannabis flowers for medical purposes in 2017. Although annual domestic production was capped at 10,400 kg, since that time, the amount of cannabis prescribed under the program has steadily increased, fed by imports from countries like Canada. In the first three quarters of 2017, there were just 530 kg of cannabis imported into Germany. By the completion of the first three quarters of 2023, that increased to 14,315 kg.
January marks Alzheimer’s Awareness Month, a time to reflect on the growing impact of dementia on individuals and families across Canada. The numbers are frankly alarming – over 700,000 Canadians are currently living with this condition, and projections suggest that the number could double by 2050.
It’s not just the memory loss; for many with moderate to severe Alzheimer’s, agitation and aggression become a daily struggle, deeply affecting both the individuals themselves and those who care for them.
As a pharmacist, I’ve witnessed these struggles firsthand and seen the frustration when conventional treatments just don’t seem to make enough of a difference. It’s in this context that the potential role of cannabis has begun to spark interest and raise important questions.
A glimmer of hope: what the research suggests
The connection between cannabinoids and dementia is still a developing area of research, but some promising findings have emerged. As a pharmacist, I find it particularly intriguing to see studies exploring cannabinoids’ potential to address challenging symptoms like agitation and aggression in Alzheimer’s patients.
For example, a 2018 study conducted at Sunnybrook Health Sciences Centre demonstrated that nabilone, a synthetic cannabinoid, significantly reduced agitation in patients, with a 47% decrease compared to a 23% reduction in the placebo group. A more recent 2024 study from Johns Hopkins and Tufts Universities found that dronabinol, another synthetic cannabinoid, showed similar benefits in reducing agitation, with fewer side effects than traditional antipsychotics.
While these early studies give a glimmer of hope, they also emphasize the need for cautious, informed application of cannabinoids in dementia care, given the complexity of their effects on the brain.
The importance of careful guidance
Cannabinoids interact with a brain affected by Alzheimer’s in unique and sometimes unpredictable ways. While many people turn to cannabis for its calming properties, dementia patients may experience adverse effects, such as heightened confusion or excess sedation. As a pharmacist, I’ve seen firsthand how these complexities require thoughtful consideration and a tailored approach.
This is why I advocate for pharmacist-led guidance when exploring the use of cannabis. With our clinical training and understanding of both conventional and alternative therapies, pharmacists are uniquely positioned to ensure cannabis is used safely, effectively, and in alignment with the specific needs of each patient. At Apothecare, my co-founder Ajay Chahal, a fellow University of Toronto-trained pharmacist, and I are dedicated to closing the gap between traditional and alternative medicine.
As pharmacists, we understand the complexities of incorporating cannabis into patient care, and we’re passionate about empowering patients and caregivers to make informed decisions. Our approach is rooted in evidence-based cannabis education, ensuring that any use of cannabis is accompanied by close monitoring and a plan tailored to each patient’s unique needs. We see ourselves as trusted navigators, helping patients and their families understand the intricacies of cannabis therapy, and prioritizing safety and efficacy every step of the way.
Looking ahead: the future of research
The conversation around cannabis for wellness purposes is constantly evolving, and Canada is playing a key role in this ongoing research. While the initial findings on cannabinoids and their potential to improve quality of life for dementia patients are preliminary, it’s important to remember that more research is needed. We need larger-scale studies to really establish best practices and robust safety guidelines. That said, even the limited research done so far offers some encouragement.
For anyone considering cannabis as a potential treatment option, I urge you to have a thorough conversation with your healthcare provider. It’s about making informed decisions, weighing the potential benefits against the risks, and ensuring proper oversight. With the right approach – grounded in education, careful monitoring, and personalized care – cannabinoids could potentially become a valuable tool in our efforts to provide better care and a better quality of life for those living with this challenging condition.
About the Author:
Anushya Vijayaraghevan is a licensed pharmacist and co-founder of Apothecare. She holds a Doctor of Pharmacy from the University of Toronto and is deeply committed to integrating evidence-based cannabis use into patient care.
The number of client registrations with federally licensed sellers of cannabis for medical purposes continued to remain fairly stable from March 2023 to June 2024.
Meanwhile, the number of individuals registered with Health Canada for personal and designated cultivation of cannabis for their own medical purposes continues to increase. There were 15,726 such registrations in March 2024 and 16,609 in June 2024, a 6% increase.
The majority of the increase, 883 registrations for personal/designated production, came from three provinces. Ontario saw the most, with an increase of 329 registrations, Quebec accounted for 248, and British Columbia had 177.
The average daily amount of cannabis authorized by health care practitioners was again 2.4 grams per day. This amount has averaged around 2.0 and 2.4 grams per day since legalization began in October 2018.
As of June 2024, the average daily amount authorized by health care practitioners for individuals registered with Health Canada for personal or designated production was 34.6 grams per day, up from 33.0 grams per day as of December 2023.
Health Canada continues to express concern at this growing discrepancy in authorized daily totals of cannabis, engaging with provincial colleges of physicians, scrutinizing applications, and inspecting authorized production sites.
Health Canada has ramped up inspections of such licences, with more than 300 in the last two years. The most recent annual report also included 20 compliance and enforcement activities (other than inspection) for registered personal and designated production of cannabis for medical purposes, such as conducting seizures and destructions.
Of the 160 inspections of registered personal and designated production of cannabis for medical purposes locations in 2023-2024, 74 were in British Columbia, 63 in Ontario, 18 in Quebec, and five in New Brunswick. In the previous year, the majority of such inspections (115 out of 170) were in Ontario.
As of June 2024, 4,621 healthcare practitioners were associated with registrations made in the previous twelve months with federally licensed sellers, down from 4,879 as of December 2023.
There were 1,010 health care practitioners (HCPs) associated with active personal/designated production registrations, up from 941 as of December 2023. Of these, 232 healthcare practitioners authorized amounts equal to or above 25 grams per day, up from 222 as of December 2023. The number of HCPs associated with amounts equal to or above 100 grams per day dropped from 13 as of December 2023 to 8 as of June 2024.
The majority (78%) of HCPs having authorized amounts equal to or above 25 grams per day were still located in British Columbia and Ontario. Once again, 100% of HCPs having authorized amounts equal to or above 100 grams per day were located in British Columbia and Ontario.
The Export Market
Exports of cannabis for medical purposes continued to show significant increases. There were 67,475.28 kilograms of dried cannabis exported to the international market in the first six months of 2024 and 79,279.75 kilograms exported in 2023.
Exports of cannabis oil for medical purposes have also increased significantly in the last few years. In the first six months of 2024, Canada exported 10,489.38 litres of cannabis oil, and in 2023, 7,078.9 litres. In September 2023 alone, 1,011,74 litres were exported, the highest month on record.
Health Canada issued 101 new licenses in 2024. Of these:
62 were micros
3 were nurseries
36 were standard cultivator, and/or processor, and/or medical sales licenses
By our calculations, there were also notable changes on the other side of the equation:
98 licenses Revoked on Request
11 suspensions (6 of which were subsequently lifted)
15 expirations
8 Revocations by the Minister
This brings the total to 121 licenses either revoked or expired, meaning there was a net loss of 20 licenses in 2024.
Currently, there are 914 federal licenses. According to Health Canada only 322 of 808 cannabis excise licence holders were active and remitting excise duties to the CRA as of September 2023.
Product recalls
In 2024, there were 11 cannabis product recalls in Canada. The majority of these were due to labeling or packaging errors, such as incorrect product information or missing required details.
A smaller number involved quality assurance issues, including higher-than-allowable levels of microbials or missing a microbial test. One recall was issued for the presence of an unlabelled cannabinoid, hexahydrocannabinol (HHC).
It’s worth noting that all of these recalls were voluntary, reflecting proactive compliance by producers.
For comparison, there were 12 cannabis product recalls in 2023, and since legalization in 2018, there have been 80 recalls in total.
Featured image via Habitat Life, a micro producer in BC.
The company behind retail chains T Cannabis, Cost Cannabis, and Fresh Cannabis Co., 1CM Inc., reported revenue of $50.5 million and cost of goods sold of $41.5 million in relation to cannabis for the year ended August 31, 2024.
This is an increase from $34.7 million in revenue and $26.8 million in cost of goods sold for the previous year, which ended August 31, 2023. Including non-cannabis sales, the company earned a net income of $615,906 and reported an accumulated deficit of $40,512,917 as of August 31, 2024.
The company says cannabis retail revenue contributed to 80% of its revenue growth for the year due to both new and existing stores, while the remaining 20% was related to the growth of its liquor retail operations.
The company currently operates 34 cannabis stores in Canada, and 1CM says its retail cannabis revenue has increased year-over-year due to the expansion of its store count and the maturity of its retail cannabis locations.
Two of those stores, both Cost Cannabis branded, are located in Alberta. Two Fresh Cannabis Co. stores are located in BC. In New Brunswick, 1CM operates two Cost Canna locations and has another two in Saskatchewan. In Ontario, 1CM has 26 retail cannabis locations.
Cannabis revenue increased by 50% from the previous year, with 75% of that growth related to Ontario store expansions, based on growth that was related primarily to same-store sales.
The company says its revenue pricing is based on the competitive market, and the increase has been due to more traffic in these stores, along with the additional stores opened during the period.
“Management believes this increased growth can be attributed to customers appreciating the company’s competitive pricing strategy during a macroeconomic climate suffering from high inflation and affordability affecting many Canadians. The Company’s competitive pricing strategy combined with its commitment to customer service can be partially credited for the sales growth,” notes the financial report.
New changes to cannabis regulations in Germany could be good news for Canadian cannabis exporters, say some in the industry.
A new research project could allow for cannabis to be sold in retail stores in up to 25 different German cities, supplied by authorized cannabis wholesalers in the country.
The program will allow applications for retail, adult-use, and non-medical cannabis sales in partnership with German municipalities and supply partners, with a focus on research.
Because the program is built around scientific research, it will also avoid EU and UN restrictions that would otherwise prevent the import of cannabis from outside of Germany, says Finn Age Hänsel, managing director and founder of Sanity Group GmbH, a cannabis-focused company based in Berlin. Similar to EU and UN rules, Health Canada only allows the export of cannabis for medical or research purposes.
Sanity Group operates as a wholesaler in Germany’s medical cannabis market, as well as partaking in a similar retail pilot project in the Netherlands. As such, Hänsel says he’s already in the process of securing supply deals with different international cannabis brands, from suppliers ranging from their partner Organigram to independent Canadian producers like Cake and Caviar, Lyonleaf, and Miracle Valley, and US brands like Kalifa Mints and Alien Labs.
Hänsel says there’s a demand in the market for both value-priced and craft products, noting that this is an opportunity for any Canadian craft growers who want to see their products sold through the pilot project.
“To be honest, because I am an enthusiast myself, I would rather work with smaller companies who really have an eye on quality and are craft cannabis producers compared to working with large companies,” says Hänsel.
“I like some of the large companies. We let Organigram invest because we like them. But in general I think we are a company who [prefers] the smaller growers.”
The research side of the project, he explains, will require customers to register with the company and fill out surveys on their consumption habits at six-month intervals. This research will be collected over two years in a five-year project, seeking to better understand the public health impacts of such a model.
The research will be in coordination with local universities and the municipalities in which they are located. Cities will also receive €0.50-€1 per gram of cannabis sold from the stores under their purview. He expects cannabis to be sold for around €10 a gram, which he says is similar to typical black market prices. One Euro is about $1.50 Canadian.
Deepak Anand, a Canadian industry consultant who assists cannabis companies with exports, also sees significant potential for Canadian growers if the pilot project is successful.
“If this is couched as a scientific research project then it would meet the definition of medical or scientific purposes. Why I think this is important for Canadian companies is this would allow them to sell cannabis for both medical and scientific purposes. So I think it opens up and expands the reach of our market.”
Although Hänsel is unsure what types of cannabis products they will be allowed to sell in their stores, if licensed, he hopes to offer dried flower and edibles, with a focus on seeing if survey respondents report moving from mixing cannabis with tobacco to using cannabis only, or even shifting from inhalation to edibles.
The change was announced on December 11, when the German Federal Office for Agriculture and Food (BMEL) was tasked by the German Parliament (the Bundestag) with appointing the responsible body for processing research applications on consumer cannabis and industrial hemp.
The regulation that has now been issued—the Consumer Cannabis Science Responsibility Regulation—requires the Federal Office for Agriculture and Food to examine relevant research applications and monitor the approved projects.
This moves this specific type of work away from the German Federal Institute for Drugs and Medical Devices (BfArM), which remains the responsible authority for research into medical cannabis.
Germany legalized cannabis in March 2024. The law came into effect in two main phases: the first phase, which allowed for personal cannabis cultivation and possession, came into force on April 1, and cultivation clubs were allowed in July.
Phase two was supposed to allow for a medical sales model, but shifting domestic politics appears to have slowed that process down. That delay caused the German Parliament to create this new enactment that will allow the retail cannabis pilot project.
Because the new pilot project was created as an enactment of parliament rather than as legislation, Hänsel says a new government could stop the project, but he does not believe any applications already approved and initiated can be stopped.
His own organization plans to apply very soon, and facing several months of application process and site selection and other logistical issues, he encourages others to do the same.
“If you don’t get the applications in December, it will be very tight to be approved before the new government has formed.”
The Nova Scotia Liquor Corporation (NSLC) saw $32.6 million in cannabis sales in the three months ended September 29, 2024 (Q2 2024), a 3.9% increase from one year prior.
Cannabis sales were about 13% of the NSLC’s total sales for the quarter. Sales of cannabis from Nova Scotia cannabis companies decreased 10.1% in Q2 2024 to $9.2 million. Local sales decreased by 1.4%, to $9.3 million, or a little under one third of all cannabis sales in the previous quarter, as well. Nova Scotia cannabis accounted for 28.3% of all cannabis sales in the most recent quarter.
“This quarter we saw a slight increase in sales overall,” said Greg Hughes, President and CEO. “Cannabis, along with the ready-to-drink category, continues to perform well and is leading this growth.”
Retail customer transactions for cannabis increased by 3.4% between July 1 and September 29, 2024, and the average dollar value of each transaction was $37.22, an increase of 0.5%.
The average price per gram for cannabis decreased by 2% to $5.88, down slightly from $5.90 in the previous quarter.
Health Canada currently lists 33 active cannabis production licenses in Nova Scotia. Nova Scotia has 50 licensed cannabis stores. In the NSLC’s 2023 annual report released earlier this year, they said that 79% of Nova Scotians lived within 10 kilometres of a licensed cannabis store.
The agency says all its profits go back to the provincial government to help fund “key public services.”
The Ontario Cannabis Store (OCS) is promoting its ongoing Cannabis Made Clear campaign over the holiday season, sharing tips and resources for safe and responsible cannabis consumption.
First launched in 2022, the Cannabis Made Clear campaign is part of the provincial cannabis agency’s mandate to promote responsible cannabis consumption and includes marketing campaigns across the province targeting consumers, non-consumers, residents, and visitors alike.
As people gather and enjoy holiday festivities over the coming winter months, the OCS’s senior manager of social responsibility, Dr. Jenna Valleriani, PhD, shares tips for safer consumption and discusses some of the issues the campaign focuses on this season.
“The first age-old harm reduction tip is always to start low and go slow,” says Valleriani. “And what that really means is to consume a little bit and wait a bit of time to feel the effects before you consume more.”
She says this is especially true with edibles, which could be a gift over the holidays, possibly even a gift to someone without much experience with cannabis.
“My suggestion is to always start with 2 or 2.5 milligrams if you’re unsure what that will feel like and always wait a full hour before consuming more, just so you can enjoy the experience and make sure that you’re not over-consuming.”
Another issue, not only with edibles but with other types of cannabis products, including leftover joints and roaches, is to ensure safe storage and disposal, Valleriani adds. Not only do you want to ensure kids don’t accidentally ingest cannabis gummies or chocolates they might mistake as regular candy at a family gathering, but pets have been reported to at times ingest joints left on the ground, leading to a potentially bad Christmas for Fido.
Other issues Valleriani highlights are being safe on the roads and ensuring you have arranged transportation if you are planning on consuming any cannabis products of any kind. This is especially true for young people, she points out, who have a zero-tolerance rule for any cannabis in their system.
Instead, she recommends planning ahead and using ride-sharing, taxis, public transportation, or the help of friends or family.
People will also want to be aware that consuming cannabis with alcohol can greatly enhance the effects of both of these intoxicants, even for a seasoned consumer of either.
Lastly, she discusses that if edibles are a part of a social gathering and available for consumption, take the time to clearly label which products are infused and which aren’t, and ideally, keep them separate from each other to avoid accidental consumption.
The holiday Cannabis Made Clear campaign runs from December 2 to January 26. It includes ads on billboards around Ontario, across different campus networks, Rogers Sportsnet, and various online platforms like Snapchat.
Organigram Holdings Inc. has acquired cannabis extractor Motif Labs Ltd. for $90 million in a stock and cash deal.
The move, consisting of $50 million in cash and $40 million of Organigram common shares, says the company, makes Organigram the largest cannabis company with a combined market share of 12.4%. Motif holds 21.2% and 9.4% share of the Canadian vape and infused pre-roll markets, respectively, according to data from Hifyre.
This will mean the combined companies will have a combined market share of 21.7% for vapes, 9.6% for pre-rolls, including 16% for infused pre-rolls, 14.1% for concentrates, 21.6% in the hash category, 11.2% in cannabis flower and 47% in milled flower, and a 19.2% market share of cannabis gummies.
“This deal is about a leading public cannabis company joining forces with Canada’s top private licensed producer,” said Paolo De Luca, Chief Strategy Officer at Organigram in a press release. “We are extremely excited about leveraging our combined competitive advantages and respective market positions to continue to grow in Canada and beyond.”
Located in Aylmer, Ontario, Motif is a Canadian leader in the vape and infused pre-roll categories with a portfolio of brands like BOXHOT and Debunk, Boondocks, and Rizlers, and wholesale sales and services for external brands. The company grew from $35 million in net revenue in 2022 to $79 million in 2023 and has generated approximately $86 million in the past year. Motif also has a storage facility in London, Ontario, which Organigram plans to use as a distribution hub.
The Aylmer facility provides Organigram with monthly production of 1,350 kgs of distillate, 400 kgs of high-value hydrocarbon extracts, 750k infused pre-rolls capacity, and 1 million units of vape filling capacity.
The cannabis extractor can produce 1,350 kg of distillate per month and 400 kg of hydrocarbon-derived extracts. The company can also produce THCA, an increasingly popular cannabinoid among consumers.
Said Beena Goldenberg, CEO of Organigram: “The highly complementary acquisition of Motif establishes Organigram as Canada’s largest cannabis company by market share and accelerates our vision to be a leading cannabis company across all major categories, driven by a relentless focus on the consumer of today and tomorrow.”
Mario Naric, CEO and Founder of Motif, said: “This is a landmark transaction in our industry and the Motif team is thrilled to be joining forces with Organigram to create Canada’s undisputed leader with deep capabilities in all major cannabis categories.”
Organigram reported net revenue of $41.1 million for the third quarter of 2024 and net income of $2.8 million, compared to a loss of $213.5 million in the same reporting period in 2023.
The majority of the company’s net revenue for the three months ended June 30, 2024, came from sales in Canada’s non-medical “adult use” market ($36.5 million or 89%), while just 6% of sales ( $8.3 million) were to the international markets and 1% of sales ($325,000) were into Canada’s medical cannabis market.
Sale of cannabis flower was 58% of Organigram’s business in Q3 2024, at an average cost of $1.50 per gram, down from $1.67 per gram in the same quarter in 2023 and $1.51 from Q2 2024.
In May 2024, Organigram announced a three-year supply agreement with Avida Medical in the UK, with the potential to supply 1,700 kilograms of indoor-grown dried cannabis flower to Avida. In June, it announced a plan to acquire a minority stake in Berlin-based cannabis company Sanity Group, expanding Organigram’s footprint in Europe.
This is the second of three rounds of funding from BT DE Investments Inc., a wholly-owned subsidiary of BAT. Plans for the partnership between British American Tobacco and Organigram were announced in late 2023, with an investment of nearly $125 million from BAT.
At the time, Organigram said most of the $124.6 million investment would be used to create a strategic investment pool named Jupiter, focusing on emerging cannabis opportunities, including geographic expansion.
The first round of funding closed on January 23, 2024. The third round of funding is expected in early 2025.
Motif was the largest privately owned cannabis business in Canada prior to the completion of the transaction.
