Canadian Cannabis Market Outlook 2026: Dried Flower Is Losing Share as the Market Grows

Canadian cannabis retail sales reached $5.6 billion in 2025 and are running 5.9% ahead through the first seven months of 2026. Flower still holds 58.5% of the market, down from 60.1% two years ago, while extracts and edibles take the gains.

Canadians bought $3.4 billion of cannabis at retail in the first seven months of 2026, up 5.9% on the same period in 2025 and 11.4% on 2024.

Across the full year 2025, retail cannabis sales reached $5.6 billion, up 4.2% on 2024.

The market is still growing, and the growth is no longer coming from flower. Dried flower rose 4.4% over the first seven months of 2026 while extracts and concentrates rose 7.8% and edibles rose 10.0%. Flower's share of the market has fallen from 60.1% in 2024 to 58.5%.

Figures in this article cover Canadian monthly retail cannabis sales from January 2024 through July 2026, in current dollars.

Canadian Cannabis Retail Sales Reached $5.6 Billion in 2025

Retail cannabis sales totalled $5.6 billion in 2025, up from $5.4 billion in 2024. Monthly sales averaged $468.4 million in 2025 against $449.5 million in 2024, and $485.4 million across the first seven months of 2026.

The series has a mild seasonal shape. February is the weakest month in all three years and the May to August stretch the strongest. February 2024 at $402.3 million is the lowest month in the period and June 2026 at $516.4 million the highest, a range of $114.1 million.

Growth Accelerated From 5.1% to 5.9% in 2026

Comparing the same seven months across three years shows growth picking up. The first seven months of 2025 were 5.1% ahead of 2024. In 2026 the gap has widened to 5.9%.

Every month in 2026 is ahead of the same month in 2025. The range runs from 2.3% in July to 9.2% in January, and the pattern is uneven rather than steadily improving.

Dried Flower Is Growing Slower Than the Market It Dominates

Dried flower generated $2.0 billion over the first seven months of 2026, 58.5% of all retail cannabis sales. It grew 4.4%, below the 5.9% market rate.

Flower held 60.1% of the market over the first seven months of 2024. It now holds 58.5%, a loss of 1.6 percentage points in two years. Extracts, concentrates and other products moved the other way, from 33.6% to 35.2%.

Edibles Are the Fastest Growing Format at 10.0%

Cannabis-infused edibles generated $212.1 million over the first seven months of 2026, up 10.0% on 2025 and 12.8% on 2024. It is the fastest growing of the three published formats.

The edibles recovery is recent. Across the full year 2025 the category was effectively flat at 0.3% growth, and it recorded its weakest months of the entire period in September and October 2025, at $24.6 million and $23.9 million. Every month of 2026 has run above $27.7 million.

At 6.2% of sales, edibles remain the smallest published format. Their $19.3 million of additional sales over the first seven months of 2026 compares with $83.7 million for dried flower and $86.7 million for extracts and concentrates.

June 2026 Was the Strongest Month at $516.4 Million

June 2026 recorded $516.4 million in retail cannabis sales, the highest single month in the period covered. It beat the previous high, May 2026 at $510.4 million.

Five of the ten strongest months in the series fall in 2026, and four of those five are between April and July. December appears twice, reflecting a holiday lift that is visible in each year of the data.

February is the weakest month in all three years, at $402.3 million in 2024, $408.2 million in 2025 and $439.1 million in 2026. The February to June swing within 2026 alone is $77.3 million, or 17.6%.

Where 2026 Finishes on Current Run Rate

Applying the January to July growth rate of 5.9% to the remainder of the year gives full-year 2026 retail cannabis sales of $6.0 billion.

That would add $333.0 million to the market in a single year, against $226.3 million added in 2025.

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Frequently Asked Questions

How big is the Canadian cannabis market in 2026?

Canadians bought $3.4 billion of cannabis at retail in the first seven months of 2026, up 5.9% on the same period in 2025. On that run rate the full year would reach $6.0 billion. Retail sales were $5.6 billion in 2025 and $5.4 billion in 2024. These are consumer retail sales in current dollars.

Is the Canadian cannabis market still growing?

Yes, and faster than last year. Sales grew 4.2% across 2025 and are running 5.9% ahead through the first seven months of 2026. Every month of 2026 is ahead of the same month in 2025, ranging from 2.3% in July to 9.2% in January. Because the figures are in current dollars, growth reflects both volume and price.

What cannabis products sell the most in Canada?

Dried flower, at $2.0 billion over the first seven months of 2026 and 58.5% of retail sales. Extracts, concentrates and other products follow at $1.2 billion and 35.2%, and edibles at $212.1 million and 6.2%. Flower's share has fallen from 60.1% over the same months of 2024.

Which cannabis format is growing fastest in Canada?

Edibles, at 10.0% over the first seven months of 2026, followed by extracts and concentrates at 7.8% and dried flower at 4.4%. In dollar terms the ranking reverses: extracts and concentrates added $86.7 million, dried flower $83.7 million and edibles $19.3 million.

Are cannabis edibles growing in Canada?

Strongly in 2026, after a flat 2025. Edibles grew 0.3% across 2025 and hit their weakest months of the period in September and October that year, at $24.6 million and $23.9 million. Over the first seven months of 2026 they grew 10.0% to $212.1 million, with every month above $27.7 million.

When do Canadians buy the most cannabis?

Late spring and early summer. June 2026 was the strongest month in the period at $516.4 million, followed by May 2026 at $510.4 million. February is the weakest month in all three years, at $402.3 million in 2024, $408.2 million in 2025 and $439.1 million in 2026. December shows a consistent holiday lift in each year.

About This Analysis

This analysis was produced by Bridging Local (RC Research & Insights Inc.), a Vancouver-based market research and business consulting firm. We run primary research across B2B and B2C markets, including surveys, in-depth interviews, competitive analysis, local market deep dives and go-to-market strategy.

If you are sizing a market, testing a concept, or working out where demand sits in your category, our market research services are built for exactly that.