Research conducted by the Canadian Government has revealed that the cannabis industry contributed C$16 billion to the country’s gross domestic product (GDP) and supported 227,000 jobs in 2024.
The report, produced by the Canadian Chamber of Commerce’s Business Data Lab (BDL), found that every dollar of increased output in the cannabis industry adds C$1.06 to Canada’s GDP.
“In total, the cannabis sector generated nearly $29 billion in output in 2024, with $26 billion from production activities and $3 billion from retail,” the report stated. “This substantial output was driven by $15.1 billion in direct sales and an additional $14 billion in combined indirect and induced ripple effects throughout the economy.”
The economic impact breaks down into three categories: direct operations generated C$8.4 billion in GDP and 168,034 jobs; supply chain effects contributed an additional C$4.4 billion to GDP and supported 29,837 jobs; and consumer spending by cannabis sector workers generated a further C$3.2 billion in GDP and 29,329 jobs.
The direct GDP contribution of $8.4 billion in 2024 exceeds that of forestry and logging ($3.4 billion), breweries ($2.6 billion), and wineries and distilleries ($975 million).
“The legal cannabis sector is a high-value industry that is already delivering what the Prime Minister’s One Canadian Economy vision calls for: a nationally integrated, high-value industry that’s built in Canada, employing Canadians, and competing globally,” stated Beena Goldenberg, CEO of Organigram Global, who commissioned the report. “With bold national leadership, we can secure Canada’s place as the world’s cannabis leader; a driver of national economic resilience within the One Canadian Economy vision.”
Adult use of cannabis was legalised in Canada in 2018, and the legal market has steadily grown since. In the first three months of 2025, the industry contributed C$9.1 billion to Canada’s GDP, thought to be partly due to a 10% increase in cannabis production.
The economic benefits of cannabis reform could drive growth in the UK. According to a recent report from Curaleaf, adopting a similar framework to Canada could unlock over £13.3 billion for the UK economy, create jobs, and reduce strain on the NHS.
Canada’s cannabis industry has developed significantly over the past seven years, with other countries such as Germany taking inspiration from its regulatory framework. The UK introduced medical cannabis in 2018, though many commentators believe greater access to cannabis – both medicinally and recreationally – is needed.
