Canada’s Medical Cannabis Exports Are Thriving in Australia and Israel

 

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Online THC flower is the most popular cannabis product in Canada, favoured by both recreational and medical users. This popularity has spread to other countries, which makes Canada the largest supplier of medical cannabis flower. In the 2022-2023 fiscal year, Canada shipped over 59,986 kilograms of medical cannabis flower. Recent data shows that Australia and Israel were the top export destinations.

Key Takeaways

  • Nearly 80% of the exports went to Australia and Israel, which together imported a total of 47,332 kilograms.
  • Canadians have exported 126,025 kilograms of weed for commercial and scientific use, an increase of about 50% from the previous fiscal year.
  • Israeli Health Ministry’s cannabis unit implemented a temporary measure to import cannabis to meet the increased demand in dispensaries.

Good Market Reputation from Local to International

Looking closely at the growing retail, Canada had a favourable advantage after fully legalising the substance more than six years ago. The exploration of medicinal and recreational weed brought Canada certain advancements in its usage and merchandise.

Due to its gaining national image, there are more than three thousand recreational stores as of January 2024—an average of slightly less than one per 10,000 people. While provincial Governments monopolize wholesales, some provinces, like Ontario and Alberta, allow private-sector retail sales.

Aside from the local thriving market, many countries have hailed Canada as a quality source for medicine-based weed use.

International Sales

In the April 2022-March 2023 fiscal year, Canada exported 59,986 kilograms (about 132,200 pounds) of medical ganja flower, a 48% increase from the previous year’s 40,640 kilograms.

Most of these exports went to three countries. Nearly 80% of the exports went to Australia and Israel, which together imported 47,332 kilograms. Germany was the next largest importer, with 9,560 kilograms, or about 16% of the total.

Since 2017, Canadians have exported 126,025 kilograms of medical marijuana for commercial and scientific use. Last year, the value of these exports reached 160 million CAD, an increase of about 50% from the previous fiscal year.

Regarding extracts, Australia was the top importer, receiving 93% of the total 9,042 litres exported. The Cayman Islands was the second-largest importer, with 320 litres, followed by Brazil, Barbados, and South Africa, with 136 litres, 103 litres, and 90 litres, respectively.

Export Growth:

Fiscal Year Kilograms
2017-2018 44
2018-2019 514
2019-2020 9,254
2020-2021 15,588
2021-2022 40,640
2022-2023 59,986

Therapeutic THC Flower Industry

The local medical ganja market may reach US$1.06 billion by 2024. Revenue will grow at an annual rate of 2.68% from 2024 to 2029, which will lead to a market volume of US$1.21 billion by 2029. Per capita revenue for 2024 is estimated at US$1,310.

According to the Canadian Cannabis Survey 2023, most participants who use the plant for therapeutic purposes prefer using buds for relief. Users also prefer extracts like oils. The survey did not specify the type of buds participants use. Most likely, it’s a THC-dominant variety.

  • The local industry offers a large variety of strains with varied THC and CBD ratios. Sativa-dominant strains are uplifting, while Indica-dominant strains are for pain relief and sleep.
  • While Headset Data does not specify whether the strains are for recreational or therapeutic purposes, it shows that hybrid strains are the most popular.

International markets are interested in local Canadian buds because therapeutic marijuana undergoes strict quality control procedures. Testing for these products includes checks for potency, pollutants, and pesticides.

Australian Market

The increasing use of marijuana, primarily for therapeutic purposes, and the growing availability of products are driving growth as more customers turn to cannabinoid-based treatments. For example, as of 2023, Australia offers over 450 medicinal products.

The most significant product category in Australia is THC-containing medications. These products effectively treat ailments such as glaucoma, muscle stiffness, anorexia, and insomnia.

The amount of domestically cultivated buds in 2022 amounts to 24,000 kilograms only.

Purchasing Canadian Weed

Australia has a high demand for buds, which led them to seek top suppliers and experts. While the proportion of domestic demand for therapeutic weed met by imports will decrease to around 10% by 2030, the volume of dried plant matter imported to Australia might increase.

Israeli Market

Israel will soon reform its medical marijuana policies by eliminating the requirement for patients to try conventional medicine for up to three years before accessing marijuana.

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Currently, Israel has over 100,000 approved patients.

The January Israeli Cannabis Report predicts that if the Israeli government implement the changes smoothly, the number of patients could increase by up to 70% in 2024.

In addition to the growing demand from medical marijuana patients, Israel is a hub for marijuana research. The country’s leadership in this sector began in the early 1960s, thanks to Professor Raphael Mechoulam, an Israeli chemist. Mechoulam opened the field of cannabis science by identifying the structure and function of cannabinoids. The country’s interest in studying the plant’s impact led to increased import demand.

Why the Need for Import?

Some insiders believe local companies opposed Health Ministry reforms in early 2019, which caused them to withhold ganja and create a severe market shortage.

In response, the Health Ministry implemented a temporary measure to import weed into Israel for local dispensaries to meet demand. This temporary measure eventually became permanent. As the flow of imports increased, the market became saturated with imported and locally produced products.

Why Australia and Israel Import From Canada?

Several factors are driving Canadian exportation:

  1. Higher-Quality Products: The saturation of competition and oversupply in the Canadian domestic market prompts producers to look overseas for higher-quality opportunities.
  2. Better Margins Abroad: Exporting offers higher margins, partly due to excise levies.
  3. Fewer International Competitors: Higher barriers to entry in many international markets mean fewer competitors can challenge Canadian producers.

Aurora Cannabis CEO Miguel Martin attributes the rise in exports to the strong reputation of Canadian products.

Countries like Colombia and Denmark aim to capture a larger market share. More nations seek to be net exporters instead of focusing on importing, which suggests that competition will increase in the coming years.

Varied Options to Choose From

Canadians need not worry about shortages of high-quality ganja, as numerous dispensaries offer a wide selection at competitive prices.

Product Strain Type Flavour THC Content
Granddaddy Purple Indica Grape, Pepper 24%
Cap Junky Hybrid Minty, Apple 25%
Glitter Hybrid Lavender, Sage, Vanilla 25%
Lemon Margy Hybrid (Sativa Dominant) Citrus, Earthy 20%
Sour Tangie Sativa Citrus, Diesel 21%
Strawberry Guava Hybrid Sweet, Tropical 23%

Canada is the Leading Medical Weed Exporter

As demand for weed rises in various nations due to regulatory changes, these countries will need to find ways to meet this demand.

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They turn to Canada, known for its expertise in crafting high-quality marijuana. Increasing exports boost Canada’s economy and push manufacturers to produce even better products for local consumers. For those seeking quality marijuana, GrassLife is one of many dispensaries that offer premium products.

Frequently Asked Questions

Can people overseas order weed from Canadian dispensaries?

No. Strict regulations govern the exportation of ganja, and purchasing buds online across borders is not permitted. The best option is to buy from local dispensaries in your area.

What is the difference between buds and other weed selections?

The key difference is that buds undergo less processing than other products. Their potency can range from low to moderate but is generally lower than extracts. Buds dominate the industry due to their wider variety and lower price.

What is the most exported extract?

Oils are the most commonly exported extract. The term “oil” is broad and can refer to any oil derived from various plant parts. This includes hemp seed oil, which is from the plant’s seeds, and hemp oil, which is from plants with low THC content. These oils are sometimes called tinctures; however, “oil” is more accurate since “tincture” traditionally refers to an ethanol-based extract. Oils can also describe high-THC crude oils like Rick Simpson Oil (RSO).

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