Canada’s Legal Cannabis Market Forecasted to Reach $5.79 Billion by 2030

LOS ANGELES- Canada’s legal cannabis industry is projected to expand significantly over the next five years, with market size estimates reaching USD 5.79 billion by 2030, up from USD 3.25 billion in 2024. This growth represents a compound annual growth rate (CAGR) of approximately 12% from 2025 to 2030.

Market Drivers

The anticipated growth is attributed to several factors, including increased consumer awareness of cannabis’s health benefits, the federal legalization of cannabis in Canada, and the presence of numerous market players. The market encompasses various segments, such as medical, recreational, and industrial uses, with derivatives like CBD and THC playing significant roles.

Key companies like Canopy Growth Corporation and Tilray Brands are at the forefront of this expansion. Canopy Growth has introduced new products targeting Canada’s adult-use cannabis market, aiming to capture a larger market share. Tilray Brands has enhanced its global cannabis supply chain, increasing capacity to meet growing demand across Canada and Europe.

Segment Analysis

The medical use segment is expected to be the fastest-growing, driven by the therapeutic applications of cannabis in treating conditions like chronic pain, anxiety, and seizures. Recreational use also contributes significantly to market growth, supported by the legalization and increasing social acceptance of cannabis consumption.

Ontario remains the largest market within Canada, benefiting from a dense population and a well-established retail infrastructure. Other provinces are also experiencing growth, influenced by regulatory developments and increased consumer access to cannabis products.