Pivoting After Health Canada’s CBD NHP Ruling
Why the Medical Channel is Now the Primary Path for CBD
The start of 2026 has brought a significant shift for the Canadian cannabis industry. In a move that surprised many stakeholders, Health Canada recently removed the long-awaited proposal for Natural Health Products (NHPs) containing CBD from its forward regulatory plan. For years, producers and consumers alike hoped for a “third stream” for CBD—one that would allow non-intoxicating cannabidiol to be sold on pharmacy shelves and in health food stores alongside vitamins and supplements. With that pathway now effectively stalled, the industry must pivot.
Here is what the removal of the CBD NHP proposal means for your business and how you can navigate this “Medical-First” landscape.
What Happened?
On January 8, 2026, industry news outlets reported that the regulatory framework designed to create a “pathway for health products containing cannabidiol” had been stripped from the government’s upcoming agenda. This follows years of consultations that began back in 2019.
Is the Medical Channel the Only Way Forward?
For producers focused on the wellness and therapeutic benefits of CBD, the answer is increasingly “yes.” Without an NHP pathway, CBD remains locked behind the same regulatory requirements as THC.
However, this isn’t necessarily a setback—it’s a clarification of the market. The Medical Cannabis Channel remains the only legal way for producers to provide CBD to patients with professional healthcare oversight and without the “recreational” stigma of the adult-use retail environment.
How AirMed Supports Your Pivot to Medical
If your business strategy relied on CBD NHPs, now is the time to double down on your medical sales infrastructure. AirMed was built from the ground up to support the complex requirements of medical cannabis sales in Canada.
1. The AirMed WordPress Medical Plugin
Your website needs to be more than a digital brochure; it needs to be a secure patient portal. Our WordPress Medical Plugin allows you to:
- Manage Patient Registration: Streamline the intake of medical documents and healthcare practitioner (HCP) authorizations.
- Secure Product Catalogs: Show your CBD-dominant products only to verified medical clients, ensuring you stay compliant with strict promotion and advertising regulations.
2. Encrypted Patient Messaging
Health-focused CBD consumers often have more questions than recreational users. AirMed provides secure, encrypted messaging between your staff and your clients, allowing you to provide high-touch customer service while protecting sensitive patient data.
3. Seamless Fulfillment & Shipping
Transitioning to a direct-to-patient model requires a robust logistics engine. AirMed integrates directly with carriers and fulfillment tools (like ShipStation) to ensure that your wellness-focused clients receive their CBD products discreetly and efficiently.
The Bottom Line
The removal of the CBD NHP proposal from the 2026 regulatory plan is a reminder of the volatility of the Canadian regulatory environment. However, the demand for high-quality, health-focused CBD has never been higher. By leveraging the Medical Channel, producers can bypass the uncertainty of the NHP path and start serving patients today.
Official Context: You can monitor the current Health Canada Forward Regulatory Plan for updates here: https://www.canada.ca/en/health-canada/corporate/about-health-canada/legislation-guidelines/acts-regulations/forward-regulatory-plan.html
Industry Commentary: StratCann reported that this move leaves CBD strictly under the Cannabis Act, rather than the Natural Health Products Regulations: https://stratcann.com/news/health-canada-removes-cbd-nhp-regulation-proposal-from-forward-regulatory-plan/
And for a demonstration of our medical plugin in action, please visit: https://airmeddemo.com/
The Rise of Craft and Quality: A Reflection on 2025
As the calendar turns from 2025 to 2026, it’s a natural time to pause and reflect on the evolution of our industry. This year has not only marked another milestone since legalization but has also demonstrated a profound shift in consumer expectations. We are moving past the initial phase of simply supplying volume; the market is maturing, demanding more sophistication and quality than ever before. This reflection leads us directly to the single most compelling growth strategy for the coming year: embracing the niche for premium, craft cannabis.
The Shift from Bulk to Boutique
Seven years into legalization, the Canadian cannabis consumer is no longer a novice. Consumers are sophisticated, educated, and increasingly selective. This maturation has fundamentally changed the domestic market, shifting the focus away from volume and toward quality, novelty, and differentiation.
While large producers compete on price in the value segment; smaller, nimble producers can find profitability in the premium craft segment. Consumers are demonstrating a willingness to pay a premium for products that offer a superior experience, unique strain profiles, and transparent production ethics.
Survival in 2026 requires more than just a licence; it requires a “Craft” badge. Provinces like Ontario (OCS) have set strict criteria for this designation, which micros are uniquely positioned to meet. By meeting these standards, micros can charge a premium that offsets their higher cost-of-production compared to “Standard” producers who rely on machine-trimming and volume.
The Craft Advantage
Recent regulatory adjustments by Health Canada are directly enabling this shift by reducing red tape and empowering smaller operators through expanded micro licensing, co-packing and flexible labelling.
To capitalize on the demand for craft and quality, producers should focus on:
- Cultivation Excellence: Embrace traditional, hands-on methods such as hand-trimming, hang-drying, and specialized curing processes that preserve terpene profiles and visual appeal.
- Genetics and Uniqueness: Differentiate your brand by cultivating rare or unique genetics that can’t be found on every store shelf. Consumer loyalty is built on exceptional, repeatable experiences.
- Authentic Storytelling: Consumers want to know where their product comes from. Be transparent about your grow methods, your team, and the care that goes into each batch. This authenticity fosters trust and commands a premium price point.
The era of undifferentiated, mass-market cannabis is fading. The future belongs to the producers who are committed to quality and who understand that, in a competitive market, craftsmanship is the ultimate differentiator.
To read more about the micro movement in Canada, read this article on the Stracann website: https://stratcann.com/news/micros-continue-to-be-the-most-popular-cannabis-licence-type-in-2025/
AirMed was designed for just such craftsmanship and commitment to quality. For more information visit our Software page.
And for information on our micro licensing programme visit: https://www.airmedmicro.com/
Profile: Ontario Cannabis Association
The Ontario Cannabis Association (OCA) is a non-profit organization that represents licensed producers and processors in the province. The association’s mission is to be a collective voice for its members, working to strengthen the cannabis industry in Ontario using the guiding principles: Unite, Advocate, and Elevate.
The OCA’s work is based on several key pillars:
Advocacy: It actively champions the interests of its members by engaging with government officials and the Ontario Cannabis Store (OCS) to influence policy and regulation.
Collaboration: The association fosters partnerships with other organizations, including the Ontario Farmers Association and legacy market participants, to help them transition into the legal market.
Business Support: The OCA facilitates networking and knowledge-sharing among its members and leverages its relationships with suppliers to secure exclusive benefits and discounts.
Quality Assurance: The organization is developing a quality assurance labeling system to distinguish its members’ products and promote high standards of business practices and product quality.
The association is working to build a more inclusive, diverse, and economical cannabis industry in Ontario while ensuring the long-term success of its members and establishing a trusted and reputable legal market.
For more information please visit:
https://www.ontariocannabisassociation.ca/
Beyond Borders: Positioning Canadian Cannabis for the Global Export Market
The Global Opportunity: Why Canadian Cannabis is Primed for Export Growth
Canada has long held a first-mover advantage in the global cannabis ecosystem. Since federal legalization, Canadian producers have established world-class cultivation and processing standards that are highly valued on the international stage. As more countries open their doors to medical cannabis—particularly in Europe, Australia, and Israel—exporting is becoming a vital strategy for those looking to diversify revenue and mitigate challenges in the saturated domestic market.
The demand for pharmaceutical-grade cannabis continues to rise globally. For Canadians, the international stage is not just a secondary market; it’s a critical component of long-term economic sustainability.
Bridging the Compliance Gap: From Health Canada to the World
While Health Canada’s licensing is the foundation, accessing most international markets requires an extra layer of compliance, most notably Good Manufacturing Practices (GMP) certification. The critical points in this process are as follows.
- Certification: For producers targeting Europe, obtaining EU-GMP certification or an equivalent international standard (such as IMC GAP/GACP) is essential. This signals to global buyers that your product meets the strict quality assurance and control standards required for medical products.
- Leverage Quality: Canadian-produced cannabis is often seen as a premium product. Producers should lean into this advantage by emphasizing specialized genetics, consistency, and stability testing, which are paramount for long-term supply contracts.
- Strategic Partnerships: Working with GMP-certified distributors, logistics experts, and experienced global consultants can streamline the complex process of international customs, tariffs, and differing regulatory requirements across jurisdictions.
By intentionally building an export-ready operation today, Canadian producers can move beyond domestic competition and solidify their role as reliable, high-quality suppliers in the expanding global market. The time to look outward is now.
AirMed was designed for export markets and meets GMP and GACP standards.
For more information visit our Software page.
Or visit our Compliance page.
Report: Canada's Cannabis Sector is Mainstream
Seven years after legalization, the cannabis industry has fully integrated into Canadian society, moving from niche to mainstream consumer choice according to a new report. A national survey by Abacus Data reveals that not only is use widespread, but Canadians across the political spectrum see the sector as a valuable economic engine and are ready to see regulations modernized to fuel its growth.
According to the survey, Cannabis is part of everyday life. The data clearly shows that cannabis use is no longer a subculture. More than one in three Canadian adults report using cannabis in the past six months, with that number rising to 50% for those under 45. Cannabis is being consumed in diverse forms, with 25% of Canadians using edibles recently. Notably, the preference for cannabis is challenging alcohol: 30% of users say they prefer cannabis over alcohol, with another 29% viewing the two equally.
Canadians view the legal cannabis industry as a significant economic contributor, with a strong majority of 59% agreeing it’s important to the national economy. This perspective holds true across regions and political affiliations. This broad support translates into a clear message for policymakers.
Canadians are looking for the federal government to move beyond simple compliance and focus on growth. When asked about priorities, respondents want economic departments (like Industry or Agriculture) involved in policy decisions (47%) and tougher enforcement against the illegal market (43%).
There is also strong public appetite for emerging product categories. A majority (57%) is open to federal investment in the growth of new products like cannabis beverages, edibles, and wellness items.
Looking toward the future, over 70% of Canadians view the creation of tens of thousands of new domestic jobs and Canada becoming a global leader in wellness-focused cannabis products as a positive outcome.
The Abacus Data report concludes that the legal cannabis industry has a solid social license and visible economic value.
Abacus Data is a Canadian polling and market research firm based in Ottawa, Ontario.
For more on this report visit: https://abacusdata.ca/cannabis-is-mainstream-public-support-is-strong-and-canadians-want-the-sector-to-grow/
Profile: Alberta Cannabis Micro Licence Association
The Alberta Cannabis Micro Licence Association (ACMLA) is a non-profit organization that provides a unified voice for small-scale cannabis producers in Alberta. The association’s membership is comprised of micro-license holders, applicants, and other industry supporters.
The ACMLA’s mission is centered on advocacy, education, and collaboration. The group works directly with all levels of government to support the growth of the province’s craft cannabis sector. Key goals include shaping the industry’s future through policy reform, promoting low-cost sales channels like farm-gate operations, and reducing barriers for new entrants. The association also focuses on improving business practices and quality control for its members by sharing resources and best practices.
Beyond industry support, the ACMLA aims to foster broader economic opportunities, such as promoting cannabis tourism within Alberta. The association is also dedicated to combating the stigma surrounding cannabis through evidence-based education. By uniting its members, the ACMLA strives to create a more competitive and vibrant cannabis landscape that benefits small producers and the broader community.
For more information please visit:
https://acmla.ca/
Profile: BC Cannabis Alliance
The BC Cannabis Alliance (BCCA) is a non-profit organization that serves as a collective voice for British Columbia’s licensed craft cannabis producers. Rooted in the province’s tradition of high-quality, small-batch cannabis, the BCCA advocates for a sustainable and thriving industry that supports rural economies and creates skilled jobs.
The alliance operates on a cooperative model, with a mission to help maintain BC’s status as a global leader in cannabis innovation. It works to provide small and medium-sized producers with a safe, legal, and sustainable alternative to the illicit market. Key goals include accelerating market access, establishing a retail network for its members, and achieving economies of scale to ensure these producers can compete with larger corporations.
A core function of the BCCA is government advocacy. The organization works to reform provincial and federal policies by addressing issues like excessive taxation, regulatory burdens, and competition from the unregulated market. It actively pushes for changes such as a more equitable excise tax structure, direct delivery reporting reforms, and grants for cannabis manufacturing. By championing causes like fair farm status exemptions and aligning licensing fees with other agricultural sectors, the BCCA aims to create a more supportive environment for BC’s craft cannabis industry.
For more information including how you can help, visit:
https://www.bccannabisalliance.com/
Profile: Canadian Cannabis Tourism Alliance
The Canadian Cannabis Tourism Alliance (CCTA) is at the forefront of establishing Canada as the world’s premier cannabis tourism destination. This dynamic organization comprises business owners, advocates, and cannabis professionals united by a common goal: to build a vibrant and sustainable cannabis tourism industry nationwide.
The CCTA is actively engaged in advocating for crucial policy changes, pushing for regulations that would enable everything from cannabis sales at public events to the establishment of consumption lounges. Their forward-thinking approach, evident in their 2024 plan to position Canada as the global cannabis tourism hub, highlights their commitment to shaping a responsible and thriving sector.
Beyond advocacy, the CCTA fosters industry growth through education, partnership development, and facilitating new business opportunities. They’ve already showcased their dedication with events like the “420 Cannabis Tourism ExtravaGanja” in Niagara Falls in April 2025, demonstrating their practical efforts to bring cannabis tourism experiences to life for consumers and professionals alike.
For more information including how to join, visit:
https://www.canadiancannabistourism.com/
AirMed: Scalable Software for Your Cannabis Business
Last week we discussed building a scalable and sustainable business. Read the post here: Sustainably Scaling Your Cannabis Business.
Creating a cannabis business that is both scalable and sustainable is the best way to deal with an uncertain economy. One of the keys to scalability lies in having tools that can handle a varying volume of transactions, inventory, and data.
Our cannabis management software is designed with scalability in mind. Whether you’re a startup or a large enterprise, our platform grows with you.
Scaling up operations can mean more complex processes, such as adding new product lines, expanding to new locations, or hiring additional staff. AirMed lets you handle these complexities with ease. Features such as multi-location support, role-based access, and centralized reporting help you streamline processes and avoid bottlenecks.
AirMed manages every aspect of cultivation, processing, packaging, and distribution. We also offer quality management, workforce management, CRM and ERP-level functionality.
You can automate a series of tasks and assign them to different departments or users with activities cascading across the entire production cycle. Plan templates let you create formulas after completing the cultivation, drying and packaging of a successful batch. Our software automates inventory management and monitors stock levels in real-time to let you adjust to fluctuating demand.
With integrated tools for sales reporting, AirMed can provide data-driven insights to help you make smarter decisions. Whether it’s forecasting sales trends, identifying popular products, or tracking seasonal demand, data becomes even more valuable as the economy fluctuates.
Our system is module to let you add functionality if and when needed. We also offer flexible billing options, and we’re currently developing a lower-cost ‘lite’ version of AirMed to help micros. A limited feature set and simplified workflows will get your smaller operation up and running while ensuring that you meet compliance and stay within budget.
Investing in scalable software ensures that your business can handle changing demand, variable inventories, and flexible operations to set the stage for long-term success. With the right system in place, you can focus on your business, while knowing that your operations are efficient, compliant, and sustainable.
For more information visit our Software page or our Compliance page.
Sustainably Scaling Your Cannabis Business
As the cannabis industry fluctuates, businesses must be prepared to scale operations depending on demand. Building a scalable, but also sustainable, cannabis operation is about more than just sales or product. It’s about creating a foundation that allows your business to deal with varying volumes of transactions, inventory, and data without introducing inefficiencies or compliance risks. Your operations should be flexible enough to accommodate your current demands while being adaptable to whatever the future has in store.
Scaling Up
During upturns, your sales volume and inventory size will inevitably increase, so your operations must be able to handle that. Your production may become more complex as a result, and you may want to expand. Whether you’re adding new product lines, opening new facilities, or hiring additional staff, be conscious of overbuilding infrastructure in case of a downturn. If you do decide to invest, look for systems that will support long-term efficiency. And ensure that whatever you scale up can be scaled back if needed.
1. Increase operations incrementally or modularly. Add capacity in blocks based on actual demand, or partner with those who can provide what you lack to reduce up-front costs.
2. Maintain your cash flow and build reserves during growth phases to cushion slumps. Avoid overleveraging and watch your ‘burn rate.’ Scale in ways that don’t push your operating expenses to unsustainable levels.
3. Grow where you’re strongest. Deepen presence in high-margin, high-loyalty markets before chasing expansion. Defend your base by building brand equity and customer loyalty with retention strategies before aggressively acquiring new customers or markets.
4. Diversify selectively. If you want to diversify, offer a mix of premium and budget-friendly options to serve customers in both boom and bust conditions. If feasible, expand into sectors or geographies less exposed to fluctuations.
5. Invest in people, culture, and leadership. For long-term sustainability, hire selectively and cross-train to build a team that can wear multiple hats if needed. Encourage adaptability, learning, and resourcefulness. Create strong leaders, a key to weathering uncertainty.
Scaling Down
During a slow economy, the best way to deal with a situation that seems beyond your control is to ensure that you have control over everything you can.
1. Streamline operations and optimize cultivation to reduce waste and increase profits. For example, using data analysis on lighting, nutrients, and water usage can increase yield without compromising quality.
2. Prioritize high-margin products and markets. Evaluate strains, product formats (e.g., pre-rolls, vapes), and brands to determine which sell reliably and offer the healthiest margins. Increase or reduce efforts in specific markets depending on performance metrics.
3. Incentivize loyalty. Offer discounts, product education, or other incentives to existing clients and partners. Encourage pre-paid orders or early payment discounts to improve cash flow.
4. Communicate transparently. Be upfront with all stakeholders about the current conditions. Encourage ideas from frontline workers on efficiency and even company direction, and show investors you’re taking disciplined, strategic action.
5. Utilize scalable systems and tools. Your equipment, software and services should scale with your business needs. Discuss temporary options with your vendors such as reduction of services to control short-term costs while maintaining long-term relationships.
Conclusion
By staying agile and innovative, you can pivot quickly when needed. And by utilizing all available data, you can improve decision making throughout your operations. This will help you invest selectively in growth-enablers to give you the best return on investment (ROI) whatever the economy throws at you.
For more information visit our Software page or our Compliance page.
Profile: ABLE BC, the voice of BC’s cannabis stores
The Alliance of Beverage Licensees (ABLE BC) is the voice of British Columbia’s bars, pubs, and private liquor and cannabis stores.
A non-profit organization funded by membership dues, ABLE’s mission is to help British Columbia’s liquor and cannabis businesses succeed.
On behalf of the organization’s 1,000 members, ABLE BC works with all levels of government to create business-friendly policies and enhance private sector opportunities.
Headquartered in Vancouver, the association offers advocacy work, member benefits and discounts, and direct access to the latest industry information and policy expertise for cannabis retail members.
According to the organization’s website, ABLE BC “works hard every single day to advocate for your interests, protect your businesses, and help ensure the survival of the cannabis retail and private liquor industries.”
For more information and to sign up for ABLE BC’s free newsletter, visit:
https://ablebc.ca/
Streamlining Cannabis Inventory Management
Effective inventory management is crucial in the cannabis industry. With strict regulations governing everything from product tracking to distribution, any inefficiencies or inaccuracies can result in legal issues, loss of product, or lost revenue.
Cannabis businesses, whether cultivators, manufacturers, or retailers, are tasked with managing complex inventory systems that require real-time updates, accurate tracking, and compliance with provincial and federal laws. This is where cannabis management software can come into play.
Software that provides advanced inventory management functionality helps automate and streamline processes, while tracking every product, at every stage.
With features like barcode scanning and real-time inventory updates, cannabis businesses can gain a clear, up-to-date view of their inventory. This transparency helps to minimize human error and avoid overstocking or stockouts—both of which can have serious financial implications.
Inventory management can streamline processes like harvesting, trimming, packaging, and distribution, reducing resources. A good inventory management system can also detect shrinkage from spoilage, mislabelling or theft for better cost control and waste reduction.
Inventory data can be used to anticipate demand, plan crops, or shift production toward high-margin products. A producer can improve supply chain decisions and lead times for restocking. Meeting demands without delays and ensuring consistent availability across dispensaries or partners ultimately results in enhanced customer satisfaction.
While operational efficiency is the most obvious result of streamlining inventory management, by providing insights into trends and sales patterns, businesses can make data-driven decisions to optimize all processes and increase profits.
AirMed has been 100-percent Canadian owned and operated since it was created in 2014. Click the Request Demo button at the top of the page today to explore AirMed in a free walkthrough and learn what home-grown can do for you.
For more information about AirMed visit our Software page.
Health Canada Seeks Feedback on Natural Products with Cannabidiol by June 5
A consultation is under way by Health Canada called: Towards a pathway for health products containing cannabidiol. The goal of this public consultation is to consider permitting cannabidiol (CBD) as a medicinal ingredient in natural health products. This would require amendments to Schedule 2 of the NHPR and the PDL.
“If these amendments are made, Health Canada would have the ability to regulate NHPCCs under the NHPR [natural health products containing cannabidiol]. Provided that a product licence application for an NHPCC meets the licensing requirements in the regulations, such products could then receive a natural product number (NPN). This number indicates that Health Canada has reviewed and authorized a product.”
In the consultation document, Health Canada states, “There has been continued interest from stakeholders to include CBD in health products available without a prescription and consumers who want to access them. As a result, Health Canada committed to looking at a potential regulatory pathway for NHPCCs that may be accessed without a prescription.”
The consultation began in March and the deadline for submission of feedback is June 5, 2025.
For more information on this consultation including how to participate visit:
https://www.canada.ca/en/health-canada/programs/consultation-towards-pathway-products-containing-cannabidiol/natural-health-products.htmlFor an in-depth analysis of this consultation visit Stratcann:
https://stratcann.com/news/health-canada-seeks-more-feedback-on-cbd-as-a-natural-health-product-and-cbd-for-pets/
AirMed & Product Diversification
In a recent post, we discussed the benefits of product diversification for cannabis producers. Read the post here: https://airmedcloud.com/benefits-product-diversification/
If you have a diversified product range or are considering diversifying, know that AirMed is here for you. No other cannabis management system offers the breadth of functionality, ease of use, and comprehensive features to cover all classes of cannabis.
- Dried cannabis
- Fresh cannabis
- Cannabis plants
- Cannabis plant seeds
- Cannabis edibles
- Cannabis extracts
- Cannabis topicals
Some cannabis products, such as extracts, edibles and topicals, are categorized as special classes due to the unique public health and safety risks they present. As a result, these have specific requirements pertaining to their formulation, production and composition. AirMed offers features designed specifically for those cannabis classes. There are dedicated workflows for storing extractions after processing for further processing or for blending with other materials and more. Weights are tracked to five decimal places for precision and reporting.
Packaging features in AirMed include the ability to create discrete units such as edible gummies or gel caps, which can be recorded individually in groups or as bulk packages.
Our system offers GS1 barcoding and configuration for tracking product cases and master cases. And all labels are produced and created from within AirMed and can be customized to your needs.
With more stringent requirements for some cannabis classes comes a greater need for control and risk mitigation. Access to AirMed software functionality is controlled on a user-by-user basis. Workforce management in our software utilizes configurable departments and job roles to control which workflows workers are authorized to use. You determine who is given rights to these production areas based on the needs of assigned job roles.
We’ve also provided a range of quality management (QMS) features to support Good Production Practices (GPP) and a Preventive Control Program (PCP).
To maintain compliance with Health Canada and accurately complete the monthly CTLS report, licenses processes have specific data management requirements. We’ve already accommodated those needs with data automatically populated in the CTLS Worksheet Tool.
AirMed not only accommodates compliance reporting but business intelligence as well. Hundreds of pre-built reports are available for sales, clients, inventory, production and more.
And AirMed can manage multiple client facilities, and data can be partitioned to each respective facility.
AirMed has been 100 percent Canadian owned and operated since it was created in 2014. Click the Request Demo button at the top of the page today to explore AirMed in a free walkthrough and learn what home-grown can do for you.
For more information about AirMed visit our Software page.
The Benefits of Product Diversification
A Strategic Advantage for Producers
Cannabis producers are continually seeking ways to stay competitive and expand market share. One strategy for achieving these objectives is through diversification, which can include edibles, extracts, topicals, and even non-psychoactive CBD products. Diversification not only mitigates many of the risks associated with market volatility but also presents opportunities for innovation, efficiency and sustainability.
Risk Mitigation: The market for cannabis is subject to external pressures such as regulatory changes, shifts in consumer preferences, and economic fluctuations. By developing a range of products, manufacturers can buffer against these uncertainties. If one product line faces a downturn due to new regulations or market saturation, having a portfolio of alternative products can help maintain revenue streams.
Market Expansion: Diversification lets cannabis producers tap into different market segments to increase their chances of capturing market share in an expanding and competitive landscape. The cannabis market is no longer limited to flower smokers; consumers now seek items tailored to their preferences, such as edibles, tinctures, topicals, concentrates, and even beverages or health-focused CBD products. Each product range appeals to different demographics, from those who prefer discreet consumption methods to those interested in recreational or medicinal benefits. By offering a broad spectrum of products, producers can attract a wider consumer base, including those who might not typically engage with traditional cannabis products.
Innovation & Brand Loyalty: By innovating, producers can set trends rather than follow them, creating unique offerings that can become synonymous with their brand. This not only helps capture market attention but can also build strong brand loyalty. Consumers are more likely to remain loyal to a brand that consistently offers new, exciting, and effective products. Customers who have a good experience with a flower product may gain the confidence to explore edibles, tinctures, or wellness items from the same producer. Offering a wide variety of high-quality products enables cannabis producers to build stronger relationships with consumers. Moreover, diversifying helps a brand stand out from competitors, positioning it as a one-stop shop. Building an extended portfolio reinforces brand reputation and credibility in a market where consumer trust is essential.
Efficiency & Sustainability: Diversifying product lines can lead to better utilization of resources and contribute to environmental sustainability. Different products might use different parts of the operation, ensuring that waste is minimized, and all plant materials are used more efficiently. This can lead to economies of scale, potentially lowering the cost per unit and reducing the environmental footprint, which can appeal to environmentally conscious consumers.
Compliance with Evolving Regulations: The cannabis regulatory landscape is continuously changing, with regional laws specifying what types of products can be sold. By diversifying, producers are better positioned to adapt to regulatory changes. If one jurisdiction bans smoking, a producer with a line of edibles or topicals can still serve that market, maintaining presence and revenue.
Conclusion
Diversification offers a way to manage risk, expand market reach, foster innovation, optimize resources, comply with regulations, and contribute to sustainability. For cannabis producers looking to thrive, diversifying can be the answer. By expanding portfolios, producers can reach new customers, reduce financial risks, stay ahead of trends, and increase profitability. As the industry continues to mature, those who embrace product diversification will likely lead the market, setting standards and capturing the diverse needs of consumers worldwide.
AirMed has been 100 percent Canadian owned and operated since it was created in 2014. Click the Request Demo button at the top of the page today to explore AirMed in a free walkthrough and learn what home-grown can do for you.
Watch for an upcoming post on how AirMed handles a range of cannabis products and classes. In the meantime, visit our Software page.
Report: Cannabis Cultivation Market 2025
The Cannabis Cultivation market report covers market characteristics, size & growth, segmentation, regional & country breakdowns, competitive landscape, market shares, trends and strategies for this market.
This is one of a series of reports on the cannabis industry published by Research and Markets, an industry analysis firm headquartered in Dublin Ireland.
The analysts at Research and Markets predict the cannabis cultivation market will grow from $179.32 billion in 2024 to $208.64 billion in 2025 at a compound annual growth rate (CAGR) of 16.3%. “The growth in the historic period can be attributed to legalization trends, medical use acceptance, consumer awareness, investment inflow.”
The reports goes on to predict the cannabis cultivation market “will grow to $407.91 billion in 2029 at a compound annual growth rate (CAGR) of 18.2%. The growth in the forecast period can be attributed to research and development, sustainable practices, consumer education.”
Although the full 200-page report is expensive, the description and executive summary are free and provide excellent information on the marketplace including the following points.
- The adoption of cannabis for treating chronic diseases is anticipated to drive the growth of the cannabis cultivation market in the future.
- The increasing public acceptance and demand for cannabis are expected to boost the growth of the cannabis cultivation market going forward.
- Product innovations are a key trend gaining popularity in the cannabis cultivation market.
To read the description & executive summary of this report, visit:
https://www.researchandmarkets.com/reports/5766626/cannabis-cultivation-market-report
Study: Medical Cannabis in Older Patients
A study carried out by representatives of the University of Victoria and the commercial cannabis industry reports that “Approximately 90% of patients used medical cannabis to treat pain-related conditions such as chronic pain and arthritis. Almost all patients reported a preference for oral cannabis products (e.g., extracts, edibles) rather than inhalation products (e.g., flower, vapes), and most preferred oral formulations high in cannabidiol and low in tetrahydrocannabinol.”
This study aimed to assess the patterns of medical cannabis use in patients over 50 years of age and its effect on health outcomes such as pain, sleep, quality of life, and co-medication.
The Medical Cannabis in Older Patients Study (MCOPS) had treating physicians collecting detailed data on participant characteristics, medical cannabis and co-medication use, and associated impacts on pain, sleep, quality of life, as well as adverse events.
There were 299 participants with an average age of 66.7 years, 66.2% of which identified as female.
“Over the six-month study period, significant improvements were noted in pain, sleep, and quality of life measures, with 45% experiencing a clinically meaningful improvement in pain interference and in sleep quality scores. Additionally, nearly 50% of patients taking co-medications at baseline had reduced their use by the end of the study period, and quality of life improved significantly…”
The study was published by the Research Society on Marijuana and can be accessed here:
https://publications.sciences.ucf.edu/cannabis/index.php/Cannabis/article/view/239An article summarizing the results was published on Norml.org, an organization whose mission is to move public opinion sufficiently to legalize the responsible use of marijuana by adults, and to serve as an advocate for consumers to assure they have access to high quality marijuana that is safe, convenient and affordable.
https://norml.org/blog/2025/02/21/study-cannabis-use-in-older-patients-associated-with-improved-quality-of-life-lower-demand-for-prescription-drugs/
Report: Global Cannabis 2024-2028
The Global Cannabis Report: 5th Edition delivers a thorough analysis and insight into the world’s key cannabis markets, organised by region. This edition explores the global evolution of cannabis markets and examines possible future developments on the international stage. Additionally, it highlights the most notable and relevant trends in the industry, offering regional insights, market sizing data and analyses, and exclusive interviews with cannabis industry experts from around the world.
This report is produced by Prohibition Partners, which provides specialist information, data analytics and digital commerce solutions to the B2B cannabis industry.
For more information and to download the ‘Lite” version of the report for free, visit:
https://prohibitionpartners.com/reports/the-global-cannabis-report-5th-edition/
10 Ways to Increase Cannabis Profits in 2025
High taxes, market saturation, and increased competition are cutting into profit margins for cannabis producers in Canada. In some areas, oversupply has driven prices down, affecting profitability for both growers and retailers.
With so many challenges complicating efforts for legitimate businesses to thrive, what can cannabis producers do to increase profits? We’ve compiled 10 strategies to help you cultivate success in the upcoming new year.
1. Diversify Product Selection: Broadening your offerings to include edibles, topicals, oils, and tinctures can create a wider customer base.
2. Target Niche Markets: Focusing on specific demographics or consumer needs, such as organic or medical cannabis, can establish a unique selling proposition.
3. Expand Distribution Channels: Export markets can offer new channels for Canadian cannabis, but be aware that meeting compliance in other regions can be costly. There are, however, alternatives. Selling to GMP-compliant organizations is one. Another is boosting your reach in Canada by partnering with retailers or large distributors and by selling online through direct delivery programmes.
4. Educate Consumers: Providing educational materials about product benefits and applications can strengthen customer engagement and drive sales.
5. Enhance Quality Control: Establishing high-quality cultivation practices can lead to superior products allowing for premium pricing and inspiring customer loyalty.
6. Optimize Processes: Creating formulas for cultivation or manufacturing by developing repeatable plans, templates, and recipes can ensure success again and again and trim waste.
7. Operate Efficiently: Streamlining through automation, standard operating procedures and improved resource management can reduce costs and increase output.
8. Minimize Risks: Active prevention through workforce management, approval workflows, and incident tracking lowers expenditures resulting from errors and damages.
9. Systemize Compliance: Having a system in place to administer compliance and stay ahead of regulatory changes can protect profits.
10. Improve Decision Making: Utilizing business intelligence and data analytics to track operations and consumer trends can help you make better decisions toward future success.
By implementing these strategies, cannabis producers can position themselves for greater financial success in a competitive market.
For information on the many ways AirMed can help you improve profitability, click the Request Demo button at the top of the page and a team member will be in touch. In the meantime, visit our Software page.
Cannabis Industry Forecast for 2025
What’s in the cards for cannabis in 2025? We’ve rounded up some of the predictions.
A report from insurance brokerage Hub International states that “In a volatile marketplace, risk mitigation will separate success from failure.” The document contains results from HUB’s Executive Outlook Survey, which polled 900 C-Suite and VP-level executives on the issues facing them on profitability, employee vitality and organizational resilience. “Outlook 2025 Cannabis” discloses that 80% of Canadian cannabis companies identified rising costs as the biggest challenge to profitability, but only 65% feel prepared to address it. https://www.hubinternational.com/en-CA/insights/outlook/2025/cannabis/
BNN Bloomberg posted a video titled, “Challenges in Canada’s Cannabis Sector,” featuring an interview with Ben Kaplan, author of Catch A Fire: The Blaze and Bust of the Canadian Cannabis Industry. Kaplan, a Brooklyn-born and Toronto-based writer and editor and the founder of KIND Magazine distributed in Canada’s legal weed shops, claims the industry is currently “right-sizing”. https://www.bnnbloomberg.ca/video/shows/the-open/2024/12/24/challenges-in-canadas-cannabis-sector/
Ben Kaplan also penned an opinion piece for the Globe & Mail titled, “Forgotten in the cannabis crash is how the industry is a Canadian success story.” https://www.theglobeandmail.com/business/commentary/article-forgotten-in-the-cannabis-crash-is-how-the-industry-is-a-canadian/
Investing News Network published “Cannabis Market Forecast: Top Trends That Will Affect Cannabis in 2025.” While mostly focused on the U.S. market, the article mentions Canada. Overall, INN predicts that “2025 could be a year of transformation for the cannabis industry.” https://investingnews.com/cannabis-forecast/
For general and breaking news on the Canadian cannabis industry, visit one of the sites below.