Record Cannabis Sales in the United States and Canada: Growth Surges as Washington Softens

For once, the United States and Canada appear to agree on something.

Cannabis sales are hitting records on both sides of the border.

According to analysis reported by The Marijuana Herald, U.S. legal marijuana sales reached $2.25 billion in January, up more than 10 percent year over year.https://themarijuanaherald.com/2026/02/u-s-legal-marijuana-sales-reach-2-25-billion-in-january-up-over-10-from-a-year-ago/

Canada is not far behind in momentum. December 2025 sales reportedly hit CA$503.7 million, setting a new monthly record and pushing annual totals beyond CA$5.6 billion.https://themarijuanaherald.com/2026/02/canada-marijuana-sales-set-new-monthly-record-at-ca503-7-million-in-december-2025-total-tops-ca5-6-billion/

At a time when tariff rhetoric and trade competition between the two countries are intensifying, cannabis appears to be one sector where both economies are accelerating.

Finally, something both sides can agree on.

The U.S. Sales Story: Demand Is Durable

January’s $2.25 billion in U.S. sales is not an anomaly. It continues a pattern we discussed previously in U.S. Cannabis Sales Are Hitting Records, where we examined how consolidation, product innovation, and normalization are sustaining revenue growth even amid price compression.https://www.pacgarden.com/post/us-cannabis-sales-are-hitting-records

What is notable about the current surge is that it is occurring during a period of:

• Ongoing price competition

• Increased regulatory scrutiny

• Selective capital deployment

• Fragmented interstate markets

In other words, demand appears durable.

Sales growth at this scale suggests that cannabis has moved beyond novelty. It is behaving more like a normalized consumer category.

Canada’s Record: Maturity with Scale

Canada’s CA$503.7 million December record underscores something different: the durability of a fully federal market.

Unlike the United States, Canada operates under nationwide legalization.

Distribution channels, interprovincial commerce, and banking access are comparatively streamlined.

Crossing CA$5.6 billion annually suggests that even in a mature and highly competitive environment, consumer demand continues to expand.

The competitive dynamics between U.S. state markets and Canada’s federal system remain complex. But sales momentum on both sides indicates a sector that is not contracting. It is recalibrating and scaling.

The White House Shifts Tone

Growth is not occurring in isolation.

As reported by Fox News, the White House has continued moving toward easing federal marijuana rules, even as former drug policy voices criticize the shift.https://www.foxnews.com/politics/war-drugs-crusader-bill-bennett-breaks-trump-white-house-moves-ease-federal-marijuana-rules.amp

The political symbolism matters.

When the executive branch distances itself from traditional “war on drugs” rhetoric and doubles down on reform efforts, capital markets notice.

Schedule III rescheduling remains one of the most consequential developments in modern cannabis policy. It reshapes tax treatment, alters risk perception, and opens doors to more conventional institutional participation.

The tone out of Washington increasingly reflects recognition of cannabis as an economic sector rather than solely a criminal justice issue.

Growth Fuels Investment

Sales momentum does not automatically translate into profitability. But it does influence capital allocation.

As we discussed in Cannabis M&A Is Heating Up, strategic buyers are positioning ahead of broader normalization.https://www.pacgarden.com/post/cannabis-m-a-is-heating-up-recent-deals-signal-a-turning-point

Revenue growth supports:

• Infrastructure investment

• Brand acquisition

• Manufacturing consolidation

• Real estate optimization

• Research partnerships

Schedule III adds another layer. Reduced 280E tax exposure improves operating margins. Improved margins improve valuation frameworks. Improved valuations attract capital.

Record cannabis sales in the United States and Canada are not merely headlines. They are signals.

Competition and Convergence

Tariff tensions and economic rivalry may dominate headlines, but cannabis is quietly converging as a growth industry across North America.

Canada offers federal uniformity.The United States offers population scale and state-level experimentation.

Both markets are proving resilient.

The White House signaling reform while sales climb suggests something broader: normalization is advancing despite political friction.

What to Watch

Several variables will determine whether record cannabis sales in the United States and Canada translate into durable industry expansion:

• Finalization and implementation of Schedule III

• Banking reform progress

• Enforcement alignment in state markets

• Interstate commerce developments

• Cross-border trade policy evolution

Sales records are milestones. Sustainability depends on execution and policy follow-through.

For now, the data points in one direction: demand is strong, political resistance is softening, and capital is watching closely.

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FAQs

Q: Are U.S. cannabis sales really growing despite price compression?

A: Yes. January sales of $2.25 billion as presented by Marijuan Herald represent a year-over-year increase of more than 10 percent, indicating sustained consumer demand even in competitive markets.

Q: How does Canada’s cannabis market compare to the United States?

A: Canada operates under federal legalization, which allows nationwide commerce and streamlined banking access. The U.S. remains state-based, but total market size is significantly larger due to population scale.

Q: Why does Schedule III matter for sales growth?

A: Schedule III rescheduling could reduce tax burdens under 280E, improve capital access, and normalize banking relationships, potentially improving profitability across the industry. Don;t forget the impact of normalization and widespread access. 

Q: Does record sales automatically mean higher profits?

A: Not necessarily. Sales growth does not eliminate price compression, regulatory costs, or competition. However, sustained demand supports long-term investment and consolidation.

Q: Could U.S. and Canada compete directly in cannabis trade?

A: Interstate commerce and cross-border trade remain restricted. However, policy evolution could alter competitive dynamics in the future.