Canada's regulated cannabis market continues to grow, according to the most recent figures published by Health Canada. The quarterly update shows an increase in total cannabis sales and inventory across product types, with dried flower still very much leading the charge for the largest share of activity.
Data collected under the Cannabis Tracking System indicates that total medical and non-medical cannabis sales in packaged units were up roughly 20 percent in the second quarter of 2025 compared with the same period in 2024. Flower carried the bulk of it, while extracts and edibles moved steadily. In other words, consumers keep buying the same products they trust.
Inventory figures also rose over the year. Licensed producers and provincial distributors are holding more packaged cannabis, an increase of about 10%, the report shows, with dried cannabis making up the largest portion. Edibles and extracts each accounted for significant shares of inventory as well.
© Colin Temple | Dreamstime
From a month-by-month perspective, non-medical sales have remained stable and expanded moderately through the first half of 2025. Sales of dried flower, edibles, and extracts all stayed consistent from April through June.
Harvest and processing activity also expanded, the data shows. Ttotal licensed indoor cultivation area approached 1.39M sqm, with outdoor cultivation measuring 673 hectares. On the other hand, processing facility footprint expanded modestly in line with acreage.
Another metric included in the government's market report is the destruction of unpackaged dried cannabis, which measures product that is removed from the supply chain before packaging. That share has declined over recent quarters, suggesting better alignment between production planning and market demand.
Canada's legal cannabis market remains robust at the retail and production levels. Dried flower continues to dominate unit sales, while edibles and extracts hold steady as sizeable segments of consumer demand. The growth in total sales and inventory implies ongoing expansion of licensed activity, even as provincial and federal systems continue to refine reporting.
Source: Government of Canada
