CANNABIS MARKET PULSE: Weekly update Canada, US, and International Highlights August 4th to 10th

The cannabis industry in Canada, the United States, and around the world continues to grow, driven by legislative reforms, market trends, and changing public perceptions. As the cannabis sector develops, new initiatives, expansions, and regulatory updates are shaping the landscape for businesses and consumers alike. In Canada, provinces like British Columbia and Alberta are leading with policies that promote local cannabis production, address public health concerns, and manage the complexities of cannabis use in public spaces. Meanwhile, global markets are experiencing notable shifts, from Australia’s tightening of medical cannabis regulations to Uruguay's price changes and Germany’s increasing number of specialized pharmacies. In the U.S., states like Ohio and Oklahoma are advancing legalization efforts, while debates over cannabis-related gun laws and public health impacts continue. This week’s roundup highlights key developments, challenges, and opportunities in the cannabis industry across these regions, offering insights into the future of legal cannabis markets worldwide.

Canada

B.C. Poll Favors Smoking/Vaping Bans:

A new Research Co. poll indicates that 77% of British Columbians support banning smoking, including cannabis, in multi-unit housing, with similar backing for prohibiting e-cigarettes. More than half also say they’d avoid dating someone who smokes cannabis, reflecting ongoing stigma around public cannabis use.

Alberta Launches “Proudly Alberta” Cannabis Program:

The Alberta government will launch a “Proudly Alberta” campaign during the week of Aug. 18 to promote locally grown cannabis. As part of this effort, the provincial regulator AGLC will reduce its distribution markup by 5% for four weeks (Aug. 21–Sep. 16) on all Alberta-produced cannabis, effectively lowering retail prices without impacting producers’ margins.

Toronto’s Indoor Cannabis Lounge Research Project:

Club Lit in downtown Toronto, Canada’s only fully legal indoor cannabis lounge, is operating under a Health Canada research exemption to bypass laws banning indoor public smoking. Open since 2024, the lounge recently launched a study observing cannabis use in a social setting, aiming to inform research on real-world consumption behavior outside of lab conditions.

Pure Sunfarms Expands Cultivation Capacity:

B.C.-based Village Farms International announced plans to convert 550,000 sq. ft. of its Delta 2 greenhouse for cannabis cultivation. The CAD$10 million project, funded from cash reserves, is expected to increase annual production capacity by an estimated 40 metric tons once it is fully operational by early 2027. This 33% expansion of growing space aims to meet rising demand in Canadian and international markets.

Quebec Industry Report Urges Reforms:

A detailed new report commissioned by Quebec’s cannabis industry association (AQIC) highlights strong post-legalization growth along with ongoing challenges. Quebec’s legal cannabis GDP increased from $63 million in 2018 to approximately $1.1 billion in 2024, accounting for about 0.25% of the provincial GDP. The report advocates for policy changes, such as easing federal hemp regulations, clarifying CBD guidelines, and fighting stigma, to unlock further expansion.

B.C. Chambers Demand Cannabis Tax Relief:

The Nelson and BC Chambers of Commerce are lobbying to reduce financial burdens on the legal industry. They urged the province to eliminate the 15% “proprietary fee” that the BC Liquor Distribution Branch charges on Direct Delivery orders and pressed the federal and provincial governments to share cannabis excise tax revenue (over $400 million in B.C.) back with the industry via tax relief credits.

Canopy Growth Enters Australian Market:

Canadian producer Canopy Growth launched its 7ACRES flower brand in Australia’s medical cannabis market this week, expanding its global reach. Two high-THC strains (Ultra Jack and Jack Frost) from its 7ACRES line are now accessible to Australian patients, utilizing Canopy’s Canadian cultivation to supply overseas demand.

Legal Cannabis Price Gap Narrows vs. Illicit Market:

A recent study on Canada’s cannabis market found that legal product prices have decreased significantly over the past five years since legalization, greatly reducing the price difference with illegal weed. Most Canadian consumers now buy legally, indicating progress toward one of the main goals of legalization: replacing illicit sources.

Health Canada Plans to Trim Cannabis Oversight Staff:

Government documents show that Health Canada anticipates a decrease in cannabis program staffing for 2026–27, as dedicated funding for the federal legalization framework is set to expire. This expected reduction in full-time employees reflects the winding down of some resources initially allocated for implementing and regulating the legal cannabis industry.

Canadian Cannabis Company Earnings: Cronos Sees Growth:

In business news, Cronos Group reported Q2 2025 revenue of $33.5 million (up 21% year-over-year), with a gross profit of $14.5 million and a positive adjusted EBITDA of $1.7 million for the quarter. The results indicate improving efficiencies for the Toronto-based company, even as Canada’s overall market faces pricing and profit challenges.

United States

Massachusetts Legalization Rollback Bid:

Anti-cannabis activists in Massachusetts filed two ballot initiatives to undo key parts of the state’s legalization law. One proposal would end all commercial recreational marijuana sales, effectively recriminalizing retail, while another seeks to impose potency caps on medical cannabis. The state attorney general is reviewing the 2026 ballot petitions, which have alarmed the cannabis industry and consumers in one of the nation’s early legal states.

Oklahoma 2026 Legalization Campaign Launches:

Marijuana advocates in Oklahoma launched a new signature drive to add adult-use legalization to the 2026 ballot, with hundreds of local dispensaries backing the effort. Organizers seek to build on previous medical marijuana success (and a narrowly missed 2023 vote) by rallying voters and utilizing the state’s large cannabis industry to legalize recreational use finally.

Trump DOJ Appeals to Uphold Gun Ban for Cannabis Users:

The Trump administration’s Justice Department requested that the U.S. Supreme Court review a case to uphold the federal ban on firearm ownership by unlawful drug users, including marijuana consumers. With conflicting rulings in lower courts regarding Second Amendment rights for state-legal cannabis users, DOJ’s petition argues that disarming cannabis users aligns with historical tradition and should remain law despite the legalization of cannabis in many states.

Trump Hints at Rescheduling Marijuana:

At a private fundraiser, former President Donald Trump told donors that “we need to look at” marijuana policy, interpreted as a willingness to consider federal cannabis rescheduling if he returns to office. These remarks, confirmed by attendees and the White House, come as the Biden administration considers reclassifying cannabis. Trump’s openness to “look at” the issue indicates bipartisan momentum toward reforming marijuana’s Schedule I status.

Texas Moves to Expand Medical Program:

Texas regulators took a significant step toward expanding the state’s limited medical marijuana program, even as a proposed ban on delta-8 hemp products stalled in the legislature. Officials advanced rules to broaden qualifying conditions and access under the Compassionate Use Program, showing gradual progress on cannabis in a traditionally restrictive state environment.

Ohio’s First-Year Recreational Sales Top $700 Million:

In its first year of adult-use legalization, Ohio sold $702.5 million worth of recreational cannabis products. The milestone, reported by the state’s Division of Cannabis Control, highlights the strong consumer demand in Ohio since the start of sales. Industry experts note that, with some regulatory adjustments, Ohio’s program could serve as a national model, striking a balance between significant revenue and public health safeguards.

Legal Dispensaries Linked to Fewer Opioid Deaths:

A new scientific analysis provides encouraging news for public health: counties that opened legal cannabis dispensaries experienced a 30% drop in opioid-related mortality on average compared to counties without dispensaries. Researchers suggest that increased access to legal marijuana for pain relief may significantly reduce opioid overdose deaths, supporting the idea that cannabis availability can be a helpful strategy to fight the opioid crisis epidemic.

Cannabis Hurting Alcohol Sales, Says Liquor CEO:

The CEO of the company behind Jack Daniel’s warned that marijuana legalization is putting “pressure” on the alcohol industry’s profits. Amid recent declines in alcohol sales, he noted consumers now have an alternative in legal cannabis. This sentiment from a major liquor executive highlights how changing social habits and increased cannabis consumption are affecting other sectors like beer and spirits.

Minnesota Cities Consider Government-Run Pot Shops:

In Minnesota, which legalized adult-use cannabis this year, 13 cities are considering opening government-owned stores to compete with private retailers. Local officials in these areas (many rural or smaller communities) see municipal dispensaries as a way to ensure access and generate revenue for public budgets. The unusual model, mainly local government dispensaries, is being studied now that state law permits recreational cannabis sales.

Hawaii Funds Cannabis Education for Physicians:

Hawaii’s Department of Health introduced new medical cannabis training courses for doctors and healthcare providers. As the state’s cannabis program grows, these courses aim to educate physicians on prescribing cannabis and its medical benefits. Officials hope this series will motivate more doctors to join the program and help patients by reducing the stigma around cannabis in the medical community.

International

Australia Reviews Medical Cannabis Rules:

Australia’s Therapeutic Goods Administration (TGA) opened a public consultation starting Aug. 11 to tighten oversight of unapproved medical cannabis products. The review was prompted by growing concerns about safety risks associated with high-THC products available to patients. Regulators will consider new restrictions and quality controls in Australia’s growing medical cannabis sector.

Uruguay Raises Pharmacy Cannabis Prices:

In Uruguay, known for its pioneering legalization, the Institute for Regulation and Control of Cannabis announced updated retail prices for cannabis sold in pharmacies. New fixed prices for the four government-distributed strains will be in effect for the next six months, reflecting inflation and market adjustments in Uruguay’s unique state-run consumer system.

Nepal Drafts Bill to Legalize Cultivation:

The government of Gandaki Province in Nepal has drafted legislation to legalize marijuana cultivation. The proposed law would permit regulated cannabis farming, a significant policy shift in a country where cannabis has long been banned. Observers say Nepal’s move aims at economic growth (such as hemp and medical exports) and follows a regional trend toward relaxing cannabis laws.

German Medical Cannabis Imports Soar as Restrictions Loom:

Germany imported 43,257 kg of medical cannabis in Q2 2025, nearly half from Canada. However, a new draft bill in Germany’s parliament aims to reduce access by ending online doctor consultations and mail-order cannabis, requiring in-person pharmacy dispensing. Stakeholders warn that if approved, these restrictions could drive many of Germany’s approximately 700,000 patients back to the black market.

Japan Study Finds Cannabis Not a ‘Gateway’ Drug:

A government-backed study in Japan found no evidence that marijuana is a gateway drug leading to more severe substance abuse. This research from a country traditionally opposed to cannabis use is significant, challenging a common anti-cannabis argument. The findings, published by the Japanese government, might gradually influence Japan’s strict policies by weakening the gateway theory.

Airline THC Soda Story Deflated:

Sad to say, but a viral claim that Virgin Atlantic would serve cannabis-infused sodas on flights proved false. The airline officially denied any plans to serve THC beverages, calling the report “totally inaccurate.” The cannabis drink brand involved admitted it staged the stunt to highlight the hypocrisy of alcohol being freely served while legal cannabis remains barred.

PAX Unveils New Dry-Herb Vaporizer:

U.S. device manufacturer PAX Labs has launched the “PAX FLOW,” a premium dry herb cannabis vaporizer, worldwide on August 5. Priced at $350, the FLOW is PAX’s most advanced vaporizer to date and will be available to consumers in multiple countries. The product’s debut highlights the growing global market for high-end cannabis technology and accessories.

Germany’s Cannabis Pharmacies Multiply:

One year after Germany passed its Medical Cannabis Act, the number of pharmacies specializing in cannabis has grown five times over – from about 50 to more than 250. This rapid increase in access points shows growing patient demand in Europe’s largest medical market. Industry analysts mention that more German pharmacies are beginning to dispense cannabis, even though broader adult-use legalization remains pending.

Switzerland Advances Cannabis Legalization Plans:

Swiss officials are set to launch a public consultation on a proposed law to legalize adult-use cannabis by the end of August. The draft framework would regulate cannabis similarly to alcohol, permitting licensed sales and possession within certain limits. Switzerland’s move, following pilot trials, could make it one of Europe’s first countries to legalize recreational cannabis nationwide.

Global Cannabis Exports Hit New Highs:

New data from the Canadian government highlights the scale of the international medical cannabis trade. In the first half of 2024, Canada exported over 67,000 kg of medical cannabis worldwide. Australia was the top importer (3.5 tons, up 5% year-over-year), followed by Germany (1.5 tons). The continued growth of cross-border cannabis shipments signals increasing global demand, even as countries navigate varying legality and regulations.

The cannabis industry continues to grow and change across Canada, the United States, and around the world. As new markets emerge and regulations evolve, both opportunities and challenges arise for businesses and policymakers. In Canada, efforts to promote local cultivation, along with ongoing regulatory changes, are helping to build a stronger legal market. In the U.S., expanding legalization and public health talks are reshaping the scene, while international markets like Australia and Germany are setting the stage for new regulations and increasing demand. As the sector matures, staying aware of these shifts will be crucial for stakeholders seeking to navigate the complexities and capitalize on the evolving cannabis market. The next phase of legalization is likely to bring more innovation, regulation, and collaboration, advancing an industry that is quickly becoming a global powerhouse.