Canada’s Legal Cannabis Industry Reaches $9.2 Billion in GDP Contribution as Illicit Market Shrinks

Legal cannabis producers alone were responsible for $8.2 billion of that total, representing a 9.8% increase from April 2024. Meanwhile, the contribution from unlicensed producers fell 4% year-over-year to $1.7 billion, continuing a trend of declining influence from the illicit market since national legalization in 2018. Retail stores also played a significant role. Licensed cannabis retailers contributed just under $1 billion to GDP in April, marking a 6.4% jump from the previous year. By contrast, unlicensed retail operations contributed $839 million—a 4.1% decrease compared to April 2024.

While these seasonally adjusted, inflation-controlled figures show a steady transition from the illegal to the legal market, unlicensed storefronts have continued to proliferate. This is especially evident in Ontario, New Brunswick, Nova Scotia, Quebec, and British Columbia. In many cases, these shops are located on First Nations reserve land, though Ontario has seen an increase in unlicensed cannabis retailers operating in major cities like Toronto and Ottawa.

For comparison, crop production in Canada excluding cannabis added $19.4 billion to GDP in April, up 3.7% from last year. Miscellaneous retail stores excluding cannabis contributed $118.7 billion, a 5.3% year-over-year rise.

Together, the latest data and retail sales trends highlight legal cannabis’ growing footprint in Canada’s economy, while underscoring ongoing regulatory challenges in curbing illicit market activity—particularly at the retail level.