The Canadian cannabis market is continually growing, taking new turns and introducing new trends that reflect the world’s changing consumer preferences, evolving regulations, and advances in innovation in 2025. As the nation’s legal cannabis industry develops, the businesses and experts involved are focusing on the future of cannabis consumption, production, and distribution.
In Canada, cannabis has been incredibly popular over the past few years. In 2023, CBD sales in the Canadian cannabis market were valued at over $4 billion, according to Statistics Canada, with estimates ranging from $4 billion to $8 billion for 2026. Consumer acceptance is on the rise, and a wider variety of products are now available, ranging from dried flowers to edibles, vapes, and topicals. But what should Canadians expect from the industry from 2025 and beyond?
One trend already developing is the rise in demand for cannabis of a higher quality. As competition continues to grow within the cannabis industry, consumers are also becoming more selective, showing more interest in quality cannabis strains and products that boast more targeted effects. This trend is also closely associated with an increase in cannabis use for wellness, including stress, sleep aids and mental clarity.
“Consumers are changing,” says George Scorsis, CEO of cannabis company Entourage Health. “They’re seeking more than just recreational use, they want cannabis products that support their health and wellness goals. This means increased demand for both high-quality and benefit-driven products.”
This shift towards wellness is fuelling innovation throughout the industry. Improvements in cannabis production and extraction are creating new options for consumers.
“There is incredible progress happening in the products that are available for patients. Individuals who are seeking to use Cannabis for health related reasons, no longer need to turn to combustion. Cannabis based products mimic those available in the pharma industry such as Gel Caps, Topicals, and even Inhalers, This is to address a category of patients that are aware of the benefits but are comfortable with traditional methods of utilizing medicines.,” says Scorsis.
Incorporating lesser-known cannabinoids such as CBD and CBG into wellness routines is gaining traction in 2025. These cannabinoids have quickly become popular, targeting specific results and effects like reducing anxiety, improving sleep, and increasing focus. CBD products accounted for over 15% of all cannabis sales in 2023 and are expected to grow in the years ahead, according to a Health Canada report.
With the cannabis product market expanding, the appetite for cannabis edibles and drinks is growing. This trend is being cemented by the need for recreational and wellness consumers to combine pleasure and consumption into their everyday lives in a discreet way and is propelling this segment to grow. A report by Statista estimates that the cannabis beverage segment alone will be worth $579.2 million this year.
While the move to edibles and beverages is promising, challenges still exist for the Canadian cannabis market. Only 3% of cannabis users in 2023 said they buy cannabis from illegal sources, down from nearly 30% in 2018. In short, while this may seem to indicate that the legal market is headed in a positive direction, the legal industry still has some more work to do in reducing legal purchasing barriers and increasing accessibility.
“While there is still work to do on reducing barriers, especially around market education and illicit competition, the legal market appears to be stabilizing for the long haul. As leaders in the industry, it is our duty to develop public trust in industry products which are safe, effective, and based on science,” Scorsis explains.
Canada’s cannabis sector will continue to be influenced by changing consumer and industry trends, legal reforms, and technological progress. Despite the challenges, outlooks are high as consumers and businesses adjust to new opportunities within the legal cannabis space.
Canada’s cannabis market is not done developing, and its maturity will bring more innovation and growth in the next few years.
Written in partnership with Tom White
