News

Governments rake in more cannabis revenues

Published on March 21, 2025 by Pat Bulmer

Federal and provincial governments earned $2.2 billion from the sale of recreational cannabis in the fiscal year ending March 31, 2024—an increase of 12.6% over the previous year, Statistics Canada reported on March 7.

Sales of recreational cannabis by provincial cannabis authorities and other legal outlets increased 11.6% or $500 million from the previous fiscal year, reaching $5.2 billion in 2023-24.

The growth in sales occurred despite a 2.8% decrease in the price of cannabis, StatCan reported.

Inhaled extracts (that’s bureaucratese for vaping, essentially) was the fastest growing cannabis category in 2023-24, up 31.4% after growing 59% the previous fiscal year. This category was the biggest contributor to the increase in cannabis sales, accounting for over two-thirds (67.5%) of the $500 million increase.

The average legal consumer spent $163 in 2023-24 on cannabis. Yukon had the highest sales per person ($356), while Quebec had the lowest ($96). Quebec’s sales were impacted by its ban on cannabis vapes and topicals, as well as limited edible offerings.

Dried cannabis has been steadily losing market share to inhaled extracts. Over the three-year period from 2021-22 to 2023-24, dried cannabis decreased from 71% to 61.4% of the recreational cannabis market. Inhaled extracts increased from 18.1% to 29.3%.

Ingested extracts, edibles, beverages and other cannabis products accounted for the remaining market share.

Statistics Canada/Graphic