Canadian craft cannabis is increasingly sought after in international markets, particularly by medical cannabis users in countries such as Germany, Australia, Israel, and the UK. As the export landscape shifts, demand for products from Canada’s micro and craft growers is rising.
Toby Shillito, a Medical Cannabis Industry Consultant based in London, highlights that while initial imports into the UK were predominantly lower-priced products from large-scale producers in southern Ontario, there has been a noticeable increase in higher-quality offerings. These premium products, often sourced from micro cultivators in British Columbia, cater to a more discerning consumer base. Shillito explains, “Previously, we had cheaper products at about £6 a gram (~C$11), while the more expensive ones from micro licenses in BC were priced at around £9 a gram (~C$17).” This change reflects a broader market trend moving beyond high-THC flower to more balanced options, emphasizing terpenes and unique growing methods.
Products cultivated in living soil and small batches have become particularly appealing to certain patient demographics in the UK. Additionally, there is growing interest in non-irradiated cannabis among some consumers, presenting an opportunity for Canadian producers willing to meet this niche demand. Shillito notes that while most exported cannabis undergoes remediation for quality control and shelf stability, patients are actively seeking alternatives that do not undergo this process.
In Australia, Andrew Dowling, a director at Phytoca, observes a similar trend among medical cannabis patients who are becoming increasingly aware of Canadian craft cannabis. However, he points out that this interest remains a small segment of the broader market, which primarily focuses on budget-friendly products. Doctors, who serve as gatekeepers in the Australian market, typically recommend lower-cost options unless patients request specific brands.
Jozef Spiteri, marketing director at Purplefarm, a cannabis producer in Fredericton, New Brunswick, reports a significant increase in Canadian cannabis exports, with figures reaching $218 million in the past year, a 36% rise. Spiteri notes that international partners are shifting their inquiries from product volume to the stories behind the cannabis, including cultivation methods and the growers themselves. He emphasizes that today’s consumers prioritize not only potency but also sustainability and emotional connection to the product. “International buyers are no longer simply purchasing cannabis; they are interested in brands, genetics, and cultivation philosophies,” Spiteri states.
Despite the growing interest in craft cannabis, not all industry insiders share an optimistic view. Deepak Anand, an industry consultant focused on connecting buyers and sellers in the global cannabis market, warns of increasing competition and price pressure that could drive producers back to lower-priced, high-volume products. He notes, “While there was emerging demand for craft products, the market is shifting back towards value offerings. New entrants should be cautious about relying solely on export opportunities.”
Gord Nichol, owner of North 40, a micro producer in Saskatchewan, reports that approximately 95% of his cannabis is exported to countries like Australia and Germany. Nichol has observed a proactive approach from international buyers seeking his products rather than him actively searching for clients. He emphasizes the demand for consistent, high-quality cannabis and notes that the lack of excise tax on exports allows him to maintain competitive pricing.
In summary, Canadian craft cannabis is carving out a niche in international markets, driven by rising demand for quality and unique product stories. While established brands may thrive, new producers should remain vigilant about market changes and not rely solely on export opportunities.
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