Canada Exports 240 Tonnes of Cannabis in 2025: Where It’s Going and Why It Doubled

Where are 240 tonnes of Canadian cannabis going, and what does it mean for the global supply chain?

Canadian cannabis producers shipped an estimated 240 tonnes of medical cannabis to international markets in 2025, more than doubling the 107 tonnes exported in 2024. Some industry trackers place the figure even higher, at 275 tonnes � a discrepancy that reflects differences in how dried flower, oils, and extracts are measured across reporting frameworks. Regardless of the exact number, the trajectory is unmistakable: Canada has cemented itself as the dominant force in the global medical cannabis trade.

The surge was not a surprise for anyone watching the market. Germany’s Cannabis Act (CanG), which took effect in April 2024, triggered an unprecedented wave of medical cannabis prescriptions that European and domestic production could not satisfy. At the same time, Canadian licensed producers (LPs) facing compressed domestic margins â�� where wholesale dried flower prices have dropped below CA$1 per gram in some categories â�� found higher-margin relief in international markets. The result is a structural shift: exports are no longer a nice-to-have growth channel for Canadian LPs. They are becoming the business.

This article breaks down where those 240+ tonnes went, which companies are leading the charge, why Germany alone absorbed nearly half of it, and what the rise of Canadian cannabis exports means for supply chain managers, international buyers, and licensed producers planning their 2026 strategies.

The Numbers: Canada’s Export Growth From 2019 to 2025

To understand how dramatic the 2025 export surge was, it helps to see the full timeline. Canadian medical cannabis exports have been climbing since legalization under the Cannabis Act in 2018, but growth was modest through 2022. The inflection point arrived in 2023-2024, and 2025 blew past all projections.

Sources: Health Canada export permit data, StratCann analysis, Business of Cannabis reporting

The doubling from 2024 to 2025 was driven primarily by one market � Germany � and secondarily by sustained demand from Australia and the United Kingdom. But the story is more nuanced than a single destination. Canadian cannabis now flows to over 20 countries, and the competitive dynamics in each are evolving rapidly.

In revenue terms, Canadian medical cannabis exports generated approximately CA$220 million in the 2023-2024 fiscal year, a 36% increase from the prior year’s CA$160 million. Industry estimates for the full 2025 calendar year point to export revenues well above CA$300 million, driven by both volume growth and sustained premium pricing in European markets.

Germany: The Engine Behind the Doubling

Germany is the single most important story in international cannabis trade. The country imported over 201 tonnes of medical cannabis in 2025, up from 72.85 tonnes in 2024 � a 176% increase that made it the largest medical cannabis import market on Earth.

Canada claimed the top supplier position, shipping 93,006 kg to Germany in 2025, accounting for roughly 46% of all German imports. The quarterly trajectory illustrates how demand accelerated throughout the year:

Sources: German Federal Institute for Drugs and Medical Devices (BfArM), StratCann, International CBC

Why German Demand Exploded

Germany’s Cannabis Act (CanG), effective April 1, 2024, legalized limited adult-use cannabis including home cultivation and cannabis social clubs. More significantly for the import market, CanG removed cannabis from the German Narcotics Act (BtMG) for medical purposes, simplifying prescriptions and eliminating the prior authorization requirement from health insurers.

The consequences were immediate and massive:

• Patient numbers surged from approximately 250,000 to 900,000 in the 13 months following CanG implementation
• Medical cannabis prescriptions increased by 3,300% between March 2024 and December 2025
• Telehealth platforms proliferated, allowing patients to obtain prescriptions without in-person consultations
• Germany raised its annual import quota by 70 tonnes mid-year to accommodate surging demand

The telehealth channel became both a growth engine and a controversy. Private online platforms issued cannabis prescriptions at scale, driving a pharmacy delivery model that made medical cannabis accessible across the country. By late 2025, however, German regulators pushed back � the Munich I Regional Court ruled that issuing cannabis prescriptions purely online violates professional medical standards, and the German government introduced legislation requiring in-person consultations.

What the Telehealth Crackdown Means for Canadian Exporters

The proposed restrictions on telehealth prescriptions have raised legitimate concerns about whether German import volumes will plateau in 2026. However, most industry analysts expect continued growth � albeit at a more moderate pace � for several reasons:

1. Patient conversion is sticky: Most patients who obtained prescriptions in 2024-2025 will continue to fill them
2. In-person access is expanding: Brick-and-mortar cannabis clinics are scaling across Germany
3. Germany’s import quota was raised to 270 tonnes for 2026, signaling regulatory expectations of continued growth
4. Market forecasts project 600 tonnes of annual imports by 2028-2029

For Canadian LPs, the German market remains the most critical export destination by a wide margin, even if quarterly growth rates moderate from the explosive pace of 2025.

Portugal: Europe’s Gateway Under Pressure

Portugal has built a unique position in the global cannabis supply chain. With over 50 authorized exporting companies and EU-GMP certified processing facilities, Portugal became the second-largest supplier to Germany in 2025, shipping 55,164 kg � roughly 27% of total German imports.

But here is where the story gets interesting for anyone tracking Canada cannabis international trade: much of what Portugal "exports" originates in Canada.

The Re-Export Model

Portuguese contract manufacturing organizations (CMOs) have operated as what the industry calls "GMP washers" � importing raw or semi-processed cannabis from countries like Canada, processing it under EU-GMP conditions, and re-exporting it to Germany and other European markets. This model thrived because many Canadian LPs initially lacked direct EU-GMP certification for their Canadian facilities, making Portugal a necessary compliance intermediary.

In 2024, Portuguese cannabis exports surged 172% to 32,558 kg. Between January and August 2025 alone, Portugal exported more medical cannabis than the entirety of 2024, driven almost entirely by Germany’s demand and Canada’s supply.

The Collapse of the Portuguese Channel

The most dramatic shift in 2025 was the decline of Canadian flower re-exports through Portugal. By February 2026, Portuguese imports of Canadian dried cannabis flower had plummeted 86.6% from their April 2025 peak, dropping from CA$12.4 million to CA$1.67 million in a single month.

Several factors converged:

• Direct EU-GMP certification: Canadian companies like Aurora, Tilray, and others secured EU-GMP certification for their Canadian facilities, enabling direct-to-Germany shipments
• Operation Erva Daninha: A major Portuguese law enforcement operation in May 2025 targeted criminal organizations allegedly using licensed pharmaceutical companies to falsify documentation, triggering extended processing times for export permits (from one month to 12+ weeks)
• Cost efficiency: Eliminating the Portuguese middleman reduces per-unit costs for Canadian exporters

For supply chain managers, this is a critical trend. The "transatlantic triangle" of Canada-Portugal-Germany is flattening into a direct Canada-Germany corridor, with significant implications for logistics, compliance documentation, and pricing.

Portugal’s role in the broader European cannabis landscape remains relevant â�� the country continues to cultivate cannabis domestically and process product from other origins. For those interested in the evolving legal frameworks across Europe, including how cannabis cafes in Portugal and Portugal cannabis laws are developing alongside the medical export market, the regulatory environment is worth monitoring closely. While recreational weed in Portugal remains decriminalized rather than legalized, the medical cannabis export infrastructure has made Portugal a key node in European cannabis trade. Weed shops in Portugal operate in a legal grey area focused on CBD products, but the country’s licensed pharmaceutical exporters have built genuine GMP-certified processing capabilities that serve the continent.

Beyond Germany: Where Else Is Canadian Cannabis Going?

While Germany dominates the export picture, Canada ships medical cannabis to a diversified portfolio of over 20 countries. The second- and third-tier markets collectively represent meaningful volume and, in some cases, higher per-unit margins than Germany’s increasingly competitive landscape.

Australia

Australia is Canada’s second-largest flower export destination by cumulative value, receiving CA$230 million worth of Canadian cannabis between January 2024 and February 2026. The Australian Therapeutic Goods Administration (TGA) Special Access Scheme has driven consistent demand for medical cannabis, with Canadian producers holding a strong market position due to established quality standards and supply reliability.

However, the Australian market presents emerging challenges. Discussions about imposing tariffs on Canadian cannabis imports have intensified, and Australia’s domestic cultivation sector is growing â�� albeit from a small base. Australia more than tripled its own shipments to Germany in 2025 (reaching 4,190 kg), signaling that it is building export capabilities of its own.

United Kingdom

The UK has emerged as one of the fastest-growing destinations for Canadian cannabis. UK flower imports from Canada grew 340% between 2024 and 2025, jumping from 59 kg to over 2.5 tonnes in 2024 alone and continuing to accelerate. The UK’s medical cannabis framework, enabled by specialist prescribers, has been steadily expanding patient access since 2018.

In January 2026, the National Police Chiefs’ Council approved the first official guidance on medical cannabis for police officers â�� a signal of growing institutional acceptance that bodes well for continued import growth.

Israel

Israel has been a longstanding destination for Canadian medical cannabis, with well-established patient access programs and domestic research institutions that are among the world’s most advanced. Together with Australia, Israel has historically accounted for nearly 80% of Canadian cannabis flower exports outside of Germany.

Emerging Markets

Several smaller markets recorded significant growth in 2025:

Who Is Exporting? Canada’s Top Licensed Producers in International Markets

The export boom has not benefited all Canadian LPs equally. The international market rewards companies with EU-GMP certified facilities, established distribution relationships, and the capital to carry the long working-capital cycles that characterize cross-border cannabis trade (where payment terms of 60-120 days are standard).

Leading Canadian Cannabis Exporters (Q3-Q4 2025)

Sources: Company quarterly filings, StratCann

Aurora Cannabis stands out as the clear leader, with its medical cannabis division generating more international revenue in a single quarter than many competitors generate in a full year. Aurora’s strategy of prioritizing higher-margin international medical sales over commoditized domestic recreational sales has become the template that other LPs are following.

Village Farms’ 772% year-over-year jump in international sales is equally notable â�� it demonstrates that mid-tier Canadian producers can rapidly scale export operations when they secure the right certifications and distribution partnerships.

Why Canadian LPs Are Prioritizing Exports Over Domestic Sales

The domestic Canadian cannabis market tells a sobering story. After peaking in optimism around legalization in 2018, the domestic market has settled into a structurally challenging environment characterized by:

• Wholesale price compression: Dried flower wholesale prices have fallen below CA$1/gram in some categories
• Excise tax burden: Combined federal-provincial excise taxes consume a disproportionate share of revenue
• Oversupply: Canadian producers hold hundreds of tonnes of unsold inventory domestically
• Margin erosion: Many publicly traded LPs report negative or near-zero margins on domestic recreational sales

International medical markets, by contrast, offer dramatically higher margins. Medical cannabis sold into Germany commands CA$3-6/gram wholesale, and pricing in Australia and the UK can be even higher. For a Canadian LP with EU-GMP certification, every kilogram redirected from the domestic market to an international buyer represents a significant margin improvement.

This dynamic explains why June 2025 was a landmark month: it was likely the first time in the history of the Canadian cannabis industry that export volumes exceeded the volume of cannabis destroyed by Canadian producers. The industry is shifting from a model where excess production was destroyed to one where it is exported.

The Regulatory Framework: How Canadian Cannabis Exports Work

For international buyers and supply chain managers unfamiliar with the Canadian export process, here is how the system operates.

Health Canada Export Permits

Every shipment of cannabis leaving Canada requires a permit from Health Canada under the Cannabis Act and Cannabis Regulations. Health Canada’s general policy restricts export permits to shipments destined for countries with a legal regime for medical or scientific cannabis access. As of February 2025, Health Canada had issued 82 export permits â�� each permit covers a specific shipment, not an ongoing trade relationship.

The permit process involves:

1. Exporter application: The Canadian LP submits an export permit application specifying the product, quantity, destination country, and importing entity
2. Importing country authorization: The destination country’s competent authority must have issued a corresponding import permit
3. INCB notification: The International Narcotics Control Board monitors all cross-border cannabis movements under the Single Convention on Narcotic Drugs (1961)
4. Health Canada review: Processing times are governed by service standards (typically 10-15 business days)
5. Shipment and verification: Product must be shipped within the permit’s validity period, with chain-of-custody documentation maintained throughout

EU-GMP Certification

For European markets � which represent the vast majority of Canadian export volume � EU-GMP (Good Manufacturing Practice) certification is effectively mandatory. EU-GMP certification under the EudraLex Volume 4 framework ensures products are manufactured and controlled to pharmaceutical standards.

Achieving EU-GMP certification requires:

• Facility audits by European inspectors
• Validated manufacturing processes
• Comprehensive batch record documentation
• Stability testing programs
• Deviation and CAPA (Corrective and Preventive Action) systems
• Annual re-certification

The trend of Canadian companies securing EU-GMP certification for their Canadian-based facilities � rather than relying on Portuguese or European CMOs � has been one of the defining shifts of 2024-2025. This direct certification capability is what enabled the collapse of the Portugal re-export model and the emergence of direct Canada-to-Germany shipping corridors.

Seed-to-Sale Traceability

Both Canadian regulations and importing country requirements demand full traceability from seed (or clone) through cultivation, processing, packaging, and export. Batch-level records must document:

• Seed or clone source and propagation batch
• Cultivation environment and inputs
• Harvest date and drying/curing conditions
• Processing, extraction, or manufacturing steps
• Quality testing results (potency, microbial, heavy metals, pesticides)
• Packaging and labelling compliance
• Export permit details and shipping chain of custody

This level of traceability is not optional � it is a regulatory requirement in Canada, a condition of EU-GMP certification, and increasingly a commercial expectation from international buyers who need to demonstrate compliance to their own regulators.

What 2026 Holds: Projections and Risks

The consensus among industry analysts is that Canadian cannabis exports will continue growing in 2026, albeit at a more moderate pace than the explosive doubling seen in 2025. The Global Cannabis Exchange (GCX) expects exports to rise an additional 27% in 2026, with Germany and Australia remaining the top destinations.

Growth Drivers

• Germany’s raised import quota (270 tonnes for 2026) signals continued demand
• UK market expansion as patient access programs scale
• New market openings including the Czech Republic’s adult-use framework and expanding medical programs in Poland, Italy, and other European countries
• Price competitiveness: Canada’s massive domestic production capacity gives LPs a cost advantage over smaller-scale producers in countries like Portugal, Denmark, or Australia

Key Risks

• German telehealth restrictions could moderate prescription growth rates
• Tariff discussions in Australia and Israel could reduce Canadian competitiveness
• Portugal’s regulatory tightening (post-Operation Erva Daninha) may disrupt supply chains for LPs still routing through Portuguese CMOs
• Domestic competitors emerging: Morocco exported its first legal cannabis in 2025, and African and South American producers are building EU-GMP capabilities
• Price compression in Germany: As more suppliers enter the German market, wholesale prices are trending downward, potentially eroding the margin premium that makes exports attractive

For Canadian LPs, the strategic imperative is clear: secure direct EU-GMP certification, build distribution relationships in multiple markets (not just Germany), and invest in the compliance infrastructure � particularly seed-to-sale tracking systems � that international regulators and buyers demand.

How GrowerIQ Supports Canadian LPs Competing in International Export Markets

The export compliance requirements outlined above � Health Canada permits, EU-GMP documentation, INCB reporting, batch-level traceability, and multi-jurisdictional regulatory alignment � represent a significant operational challenge. Every shipment requires a documentation package that connects seed-to-sale data with export permits, quality certificates, and chain-of-custody records.

GrowerIQ’s seed-to-sale platform is purpose-built for this challenge. Canadian licensed producers using GrowerIQ can:

• Maintain batch-level traceability from propagation through export, generating the documentation packages that EU-GMP auditors and international buyers require
• Automate Health Canada reporting including the data feeds that support export permit applications
• Generate EU-GMP compliant batch records with full deviation tracking, CAPA documentation, and stability data
• Track COGS and export margins with business analytics that help LPs make informed decisions about which international markets offer the best returns
• Support multi-facility operations across Canadian production sites and international distribution points
• Ensure CFR Part 11 compliant digital signatures on all quality and export documentation

As Canadian cannabis exports continue to scale � from 240 tonnes in 2025 toward projected volumes above 300 tonnes in 2026 � the LPs that will capture the highest-margin international sales are those with the compliance infrastructure to move product reliably and repeatedly across borders. Manual documentation processes that worked at 10 tonnes per year collapse at 100 tonnes. The difference between winning and losing international contracts increasingly comes down to the quality and auditability of your seed-to-sale data.

Sources: Health Canada cannabis market data, German Federal Institute for Drugs and Medical Devices (BfArM), StratCann, Business of Cannabis, International CBC, MJBizDaily, MMJ Daily, company quarterly filings (Aurora Cannabis, Tilray Brands, Village Farms International, Organigram). Export volume estimates reflect available reporting as of April 2026; final Health Canada figures for calendar year 2025 are expected in Q3 2026. "},"caller":{"type":"direct"}}],"stop_reason":"tool_use