Canadian cannabis companies are increasingly looking to international markets as the domestic market becomes saturated and competition intensifies. The export market presents an opportunity for these businesses to generate new revenue and lessen the impact of Canada’s domestic excise taxes.
A significant factor driving this export trend is the growth of medical cannabis markets in regions such as Europe. For instance, Canada’s cannabis exports to Germany doubled from 16,895 kilograms (approximately 37,247 pounds) in 2023 to 33,155 kilograms in 2024, according to data from Germany’s Federal Institute for Drugs and Medical Devices (BfArM).
Deepak Anand, principal at ASDA Consultancy Services in British Columbia, mentioned that there is considerable enthusiasm surrounding the export market. However, he cautioned that many assume it is easier than it truly is, highlighting the various barriers that companies must navigate to succeed in this space.
One major challenge is obtaining European Union Good Manufacturing Practice (GMP) certifications. Out of Canada’s 900 licenses, only 19 companies currently hold this crucial certification. Village Farms International, which has offices in Lake Mary, Florida, and Vancouver, British Columbia, is one of the few license holders with EU-GMP certification. This company exports medical cannabis from its certified facility in Canada to international markets, including Germany, Australia, Israel, and the United Kingdom.
Village Farms has seen considerable success, with exports totaling $8.4 million last year. The company anticipates that its international sales will increase at least threefold in 2025, according to Sam Gibbons, the company’s senior vice president of corporate affairs. He noted that European markets are approaching the regulatory environment in a more pragmatic manner, recognizing the real potential of cannabis as a medicine.
Niklas Kouparanis, co-founder and CEO of Frankfurt-based Bloomwell Group, explained that companies lacking EU-GMP certification can collaborate with certified facilities. He pointed out that these hubs process cannabis before shipping it to Germany, where approximately 30% to 35% of imported cannabis comes from Canada. Kouparanis added that the Canadian industry has faced challenges with falling prices and overproduction.
As Germany ramps up its patient numbers, it provides a growing market for cannabis products, which Kouparanis described as a blessing for the industry. Despite Canada’s early lead in the German market, Portugal is also making strides, increasing its exports to Germany by 318%, reaching 17,230 kilograms between 2023 and 2024, according to BfArM.
Germany continues to import cannabis from various countries, including Denmark, Spain, North Macedonia, and the United Kingdom, further diversifying its sources.
