Cannabis Market Pulse (Aug 25 to Sept 1 2025)

The final week of August 2025 brought a wave of developments across the global cannabis scene, highlighting both opportunities and challenges of a rapidly growing industry. In Canada, new social responsibility commitments, eagerly awaited retail openings, and renewed debates over municipal sales bans reflected the sector’s evolving role in communities. South of the border, federal reform took center stage again with the reintroduction of the MORE Act, while discussions about rescheduling, banking access, and state-level rules highlighted the complex patchwork of U.S. policies. Internationally, countries from Switzerland to Colombia and Australia advanced or reconsidered legalization frameworks that could reshape their domestic markets. Overall, these stories show an industry navigating cautious optimism, regulatory complexity, and the ongoing push for legitimacy worldwide.

Canada

• OCS Social Impact Report: The Ontario Cannabis Store (OCS) released its second annual Social Impact Report (2024,25) on August 28, 2025, detailing its social responsibility efforts. The report highlights millions of dollars invested in education, community events, equity, and inclusion programs, including $2.8 million for public education, as well as hundreds of thousands of dollars on research and equity initiatives. OCS states that these efforts aim to create a more inclusive legal cannabis sector in Ontario by funding public-awareness campaigns, sponsorships, and programs for communities disproportionately affected by the industry prohibition.

• Surrey’s First Store: British Columbia’s City of Surrey finally opened its first private cannabis retailer on August 29, 2025, decades after legalization was passed. Imagine Cannabis, a BC chain, cut the ribbon on a new outlet in Surrey, BC’s second-largest city, following a lengthy rezoning and licensing process. Staff reported that the first day was “busier than expected,” reflecting high local demand in a city that had long relied on neighboring areas for legal cannabis. Eleven of the 12 approved Surrey retail licenses are now on track to open, marking a major expansion of legal sales in the area.

• Manitoba Sales Bans Challenged: Manitoba cannabis producer TobaGrown is urging two of the province’s largest cities to reverse their long-standing bans on cannabis retail. The company is petitioning Steinbach and Winkler (populations approximately 18,000 and 14,000) to reconsider their 2018 decisions to opt out of allowing legal cannabis stores. TobaGrown argues that after seven years of data showing no harm to communities, these bans push customers toward illegal markets, citing Ontario’s Mississauga case, where new legal stores quickly shifted users from illicit sources. (Steinbach’s council has so far refused to reconsider, while Winkler is scheduled to discuss the proposal in September 2025.)

• Retailer Training Program: Cannabis Training Canada (CTC) launched a new “Selling Skills” course on August 24, 2025, to help legal cannabis retailers improve sales performance. The brief online program teaches budtenders upselling and customer consultation techniques, aiming to increase the average “basket size” per transaction. According to CTC, even a small boost in average sale value (e.g., $2-$3 more per transaction) can significantly increase a store’s revenue over time. The course was developed with input from retailers and is offered at an introductory rate through September 30.

• Illicit Supply Disruption: In enforcement news, Ontario Provincial Police reported discovering illegal cannabis grow operations whose products were being shipped to other provinces. During investigations this week, the OPP seized unlicensed marijuana headed for New Brunswick, Quebec, and Nova Scotia; a reminder that cross-border illegal supply chains remain a key focus for law enforcement. Provincial police continue to target these networks to protect the regulated market.

  
  

United States

• Federal Legalization (MORE Act): On August 29, 2025, Rep. Jerrold Nadler (D-NY) and 39 other House Democrats reintroduced the federal MORE Act, a comprehensive bill for legalization. This 104-page proposal would remove marijuana from the Controlled Substances Act, decriminalize possession, mandate resentencing and expungements for past cannabis convictions, and allocate tax revenue to communities harmed by prohibition. It is the fourth version of the MORE Act; it previously passed the House during Democratic majorities but stalled in the Senate. Its reintroduction indicates ongoing momentum for federal reform, though a companion bill has not yet been filed in the Senate.

• Rescheduling Debate: While Democrats push for legalization, leading Republicans are urging caution. On Aug 28, 2025, a group of nine GOP House members (led by Rep. Pete Sessions, R-TX) sent a letter to DOJ asking President Trump to block a Biden-era proposal to reclassify cannabis from Schedule I to Schedule III. The letter, reportedly influenced by anti-legalization lobbyists, argued rescheduling would send the wrong message to youth and “allow Big Marijuana” to gain tax breaks under Section 280E. Stakeholders are now awaiting Trump’s decision (expected “over the next few weeks”) on whether to accept or reject the rescheduling recommendation.

• SAFE Banking Initiative: In a bipartisan effort, the attorneys general of 28 states (plus DC and three territories) wrote to congressional leaders on August 24, urging the passage of the SAFE and Fair Enforcement Regulation (SAFER) Banking Act. The letter, led by DC AG Brian Schwalb and others, emphasizes the need to protect state-legal cannabis businesses by allowing banks to serve them without fear of federal penalties. The signers, including officials from both red and blue states, highlighted that legalizing safe banking would promote economic growth and enhance public safety across their region’s jurisdictions.

• State-Level Moves: A flurry of state policies also made headlines. In Massachusetts, regulators started drafting rules to permit on-site cannabis consumption lounges, not just at retail stores but also at cannabis producers and in non-cannabis venues like yoga studios, spas, and concert halls. In California, the Senate Appropriations Committee unanimously advanced a bill (Aug 29) to pause a recently enacted marijuana tax increase (from 15% to 19%) for five years; the bill would also allow licensed medical cannabis businesses to ship products directly to patients and update state hemp rules. Conversely, Delaware’s governor vetoed a bill aimed at loosening municipal zoning restrictions on cannabis retailers. In Texas, two developments conflicted: Lt. Gov. Dan Patrick’s campaign to ban THC hemp products was criticized by veterans’ groups (who warned it could threaten an $8 billion industry and deprive veterans of cannabis-based therapies), even as Texas DPS proposed rules to expand medical marijuana access by licensing more dispensaries and satellite facilities.

  
  

International

• Switzerland Consultation: In Europe, Switzerland’s parliament has progressed with legalization efforts. On August 29, the National Council’s Social and Health Committee approved a draft “Cannabis Products Act,” initiating a formal consultation on legalizing adult-use cannabis. The proposed law would allow regulated sales and public consumption, among other measures, pending feedback from consultations and final votes. This move suggests Switzerland could become the first country in Continental Europe to establish a regulated adult-use cannabis system market.

• Germany Policy Review: Germany’s new federal Drug Commissioner, Hendrik Streeck, signaled he may tighten parts of the country’s 2023 cannabis legalization framework. In interviews this week, Streeck expressed concern over issues like home cultivation limits and online sales, suggesting plans to require medical cannabis patients to purchase only from pharmacies and to ban homegrow or enforce stricter restrictions. These comments sparked debate, as the German public and industry had expected liberalization; critics say Streeck’s stance risks rolling back some of the legal market gains.

• Colombia Legalization Bill: In Latin America, Colombia advanced its national legalization efforts. On Aug 27, the House of Representatives’ First Committee approved a constitutional amendment bill (sponsored by Rep. Alejandro Ocampo) to legalize cannabis nationwide. The measure, intended to reform Colombia’s constitution, would ultimately allow regulated medical and adult-use sales. President Gustavo Petro, who supports legalization, praised the move to “shut the door on drug traffickers.” However, the bill must now pass multiple readings and may take up to two years to become law.

• Australia , Victoria: In Australia, a key policy debate unfolded in Victoria. On September 1, 2025, rank-and-file members of the state Liberal Party voted to adopt a motion calling for a regulated adult-use cannabis market like alcohol. The proposal would license dispensaries and impose a state cannabis excise (set at the beer tax rate) to generate revenue, with 70% allocated for debt reduction and 30% for drug treatment programs. Advocates note that modeling suggests a legal market could inject billions into Victoria’s economy over the next decade, potentially undercutting illicit sales and funding public services.

  
  

Key Takeaways: The cannabis sector in late 2025 is marked by cautious optimism despite facing headwinds. Consumer markets and product innovation are progressing, with infused vapes, new edibles, and even cannabis spirits emerging. However, financial challenges and regulatory complexities remain significant. Companies and investors are closely monitoring federal policies: any move on rescheduling or legalization could transform the market and has already caused major stock swings in August. Meanwhile, businesses are adapting regionally—expanding where possible (such as High Tide in Europe, brands in new states) and consolidating where necessary (including closures in Michigan and Texas) expansions).