Canada’s Cannabis Sector Expands Amid National Economic Slowdown

Despite legalization aiming to boost public safety and the economy, Canada's regulated cannabis industry faces significant challenges including excessive taxation and illicit market competition, which hinder profitability, especially in British Columbia where chambers of commerce are advocating for tax reductions. Conversely, Canada's cannabis sector continues to grow overall, with licensed production and retail contributing increasingly to the national GDP, even as other sectors decline, and total sales reaching record highs in May 2025. In Quebec, a new economic report highlights the sector's growth potential while emphasizing the need for regulatory reforms and improved social acceptance ahead of the 2026 provincial election. Meanwhile, Washington, D.C.'s cannabis market is rapidly expanding despite restrictive medical-only policies, showing strong sales growth and distinct consumer preferences compared to neighboring Maryland. In Europe, the cannabis pharmaceutical market is maturing as companies leverage real-world patient data to reduce drug development risks, with blockbuster products like Epidiolex illustrating potential despite cautious investment climates. Together, these developments reflect a complex but evolving global cannabis industry marked by economic growth, regulatory challenges, and shifting market dynamics.