08/21/2025
________________ THE BUD REPORT _________
Latest News on Ma*****na in Canada (2025)
Industry Growth and Financial Moves:
Sales Growth:
Cannabis retail sales in Canada hit a new high in May 2025, reaching C$485.4 million, up 4.0% from April’s C$466.7 million. This growth reflects a maturing legal market, with Statistics Canada noting steady increases in 2025.
Company Updates:
Major players like Aurora Cannabis reported strong Q2 2025 results, with net revenue of $127.3 million and positive cash flow. Auxly Cannabis Group completed debt-reduction transactions to strengthen its financial position, while TerrAscend exited Michigan but secured $79 million in debt financing.
Alberta’s Push:
Alberta launched the “Proudly Alberta” program in August 2025 to promote locally grown and made cannabis, aiming to boost regional producers.
Regulatory and Policy Developments:
Retail Changes:
Ontario is loosening strict rules requiring cannabis stores to cover windows, a change expected to improve safety and attract more customers. Calgary is considering allowing cannabis sales at events for attendees 18+, signaling evolving local regulations.
Indigenous Communities:
Mi’kmaq communities in Nova Scotia gained approval to open legal cannabis retail on reserves, expanding access. However, Kanehsatà:ke faces challenges with unregulated cannabis megastores, sparking environmental and governance concerns due to a construction boom along Route 344.
Federal Review:
The federal government initiated a Red Tape Review in 2025, which could ease regulations for the cannabis industry, following lobbying efforts to streamline licensing and compliance.
Public Health and Safety:
Cannabis Use Trends:
The 2024 Canadian Cannabis Survey (data collected April–July 2024) shows 27% of Canadians aged 16+ used cannabis in the past year, up from 25% in 2021. Usage is highest among 20–24-year-olds (50%) and in provinces like British Columbia and Ontario.
Health Concerns:
A 2025 study linked high cannabis use to increased mortality in colon cancer patients. Accidental pediatric cannabis poisonings remain a concern, with Health Canada emphasizing secure storage and public education campaigns to prevent “copycat” edible incidents.
Impaired Driving:
A 2025 focus on detecting cannabis-impaired drivers highlights ongoing public safety efforts, with new tech and policies under discussion to address rising traffic-related cannabis incidents.
International and Illicit Market Dynamics:Exports: Canadian medical cannabis exports to Germany are surging, though a new German bill may restrict this growth. Canopy Growth expanded its 7ACRES brand to Australia’s medical market in 2025.
Illicit Market:
Legal cannabis is outpacing the black market, with legal sales surpassing illegal ones since 2020. However, the Canada Border Services Agency seized over 160 kg of illegal cannabis at Calgary International Airport in 2025, showing enforcement challenges persist.
Global Context:
Canada’s legal market is viewed critically as other countries (e.g., Switzerland, Netherlands) explore legalization. A 2025 McGill study suggests higher legal prices and stricter enforcement could further reduce the illicit market but may increase consumption.
Sentiment and Trends
Industry Optimism:
The cannabis sector is seen as a growing economic contributor, with rising GDP impact despite broader agricultural declines. Companies like Organigram reported record revenues ($102.8 million in Q2 2025), fueling optimism.
Public Health Debate:
While legalization enjoys 64% public support, concerns about youth access, edibles, and impaired driving persist, especially after a 475% surge in Ontario’s cannabis-related traffic injuries over 11 years.
Social Media Buzz:
Sentiment on platforms reflects mixed views—some praise legalization’s economic benefits, while others criticize public health risks or regulatory gaps, particularly in Indigenous communities like Kanehsatà:ke.