'More Dispensaries Than Liquor Stores': How Canada Became the World's Biggest Cannabis Market

Canada is now the biggest cannabis market in the world, surpassing California. According to Canada's government data, June cannabis sales have reached $374.5 million (£275.6 million) compared to California's $372.4 million (£274.1 million).

While Canada is a country and California a state, their populations are comparable: 41.4 million for Canada and 39.5 million for California.

How Did Canada Become the Leading Cannabis Market?

California has long prided itself on being the biggest cannabis market in the world, seemingly untouchable. However, Canada has expanded accessibility and is also becoming a leading export hub for medical marijuana.

Some Canadians were not surprised by the news. On Reddit, one user said: 'My Canadian town of 10,000 has four retail outlets. All reasonably well established and seemingly successful. We also still have an active grey market.'

Another replied: 'Same with my town, there are now more cannabis stores than liquor marts.' According to Statistics Canada, there are 7.9 stores for every 100,000 people in the country. For the same population, California has only 3.7 stores.

California's Department of Cannabis Control (DCC) does not think it is a fair comparison. 'California has no peer when it comes to the size and complexity of its legal cannabis market,' said DCC spokesperson Jordan Traverso. 'We remain focused on the work of strengthening the legal market, expanding access to licensed businesses, and continuing to address the illicit market. We'll continue to follow the data and let the numbers, rather than a single-month comparison, tell the story.'

Complicating matters, cannabis is still illegal in 53% of California's cities and counties. State officials expect that it will gain back its lead against Canada in the coming months.

Still, Hirsh Jain, vice chair of the Cannabis Chamber of Commerce, said this should serve as a wake-up call for the Golden State. 'California had every advantage imaginable. Yet poor policymaking has turned what should have been the world's premier legal cannabis market into a cautionary tale,' he said.

Canada Is Also the Biggest Cannabis Exporter

Statistics Canada reported that 276 metric tons of medical cannabis flower was exported in 2025, with an estimated value of $463 million (£340 million). One of the country's biggest markets is Germany, which imported 203,000 kilograms of medical cannabis in 2025, according to Germany's Federal Institute for Drugs and Medical Devices.

Some 93,000 kilograms of the German import came from Canada. European cannabis firms are seeing a huge market on the continent, which could lead to more competition for the North American producers.

'Canada holds the near term on volume, infrastructure and reliability, but its share over the next three years will have to be defended on genuine end-to-end pharmaceutical quality, not on the cost and logistics advantage that built it,' Stephen Murphy told a cannabis publication. He is the founder of London-based cannabis market intelligence firm Prohibition Partners.

But Canadian companies are also eyeing expansions in Europe. Aurora Cannabis and Tilray Brands have extended their presence in Europe and other territories—the former has acquired two businesses in the UK while the latter has sites in Portugal and Australia. Both also have a presence in Germany.