Ontario Cannabis Regulations

When recreational cannabis legalization was first planned, Ontario announced that it will immediately introduce an online retail channel for cannabis, followed by a private retail model by April 1, 2019. Following recreational cannabis legalization on the federal level in October 2018, Ontario passed the Cannabis Control Act, the Cannabis Licence Act, and the Ontario Regulation 468/18.

The Ontario Cannabis Store (OCS) launched in October 2018 as the province’s only legal wholesaler and initial e-commerce retailer, operating under the Alcohol and Gaming Commission of Ontario (AGCO). The OCS does not operate any storefronts but provides an online channel that includes an age-verification system to ensure safe home delivery of cannabis products. The OCS also acts as a wholesale supplier for private retailers. Through ongoing competitive product calls, the OCS continues to work closely with licensed producers and accessory suppliers to ensure that Ontario’s legal cannabis marketplace has sufficient supply and a broad selection of cannabis products that meet the needs of Ontario consumers.

The first private retail stores opened in April 2019 after licenses were awarded through a restrictive lottery system under AGCO authorization. In December 2019, Ontario announced a transition to an open application system effective January 2020, enabling accelerated retail footprint growth.

Since then, the progressive acceleration of retail store authorizations under the open-market model has evolved Ontario into the largest provincial cannabis market in Canada, accounting for nearly 40% of annual cannabis retail sales.

Ontario Cannabis Market Stats

As of February 2026, AGCO issued 1,829 Retail Store Authorizations – which is 6% more authorized stores than in December 2024 according to the Ontario Cannabis Store report – and there were around 300 federally licensed cannabis producers.

Data collected by Statistics Canada show that retail sales in Ontario tripled from $31.6 million in December 2019 to $94.7 million in December 2020. Total sales reached about $728 million in 2020 and then doubled to $1,472 million in 2021, continuing to rise to $1,806 million in 2022, $2,003 million in 2023, and $2,023 million in 2024. Monthly retail sales reached nearly $200 million in August 2025. Since October 17, 2018, Ontario’s retail stores have sold more than $10 billion worth of legal cannabis.

According to the Ontario Cannabis Store report, Ontario’s authorized cannabis stores sold nearly 409 million grams of cannabis in 2024, up by nearly 20% from 2023, valued at over $2.15 billion in sales revenue. As of December 31, 2024, dried flower and pre-rolls accounted together for half of active product SKUs. Around 15% of active SKUs were vapes and 11% were infused pre-rolls. It is estimated that 65% of adults in Ontario buy cannabis from a legal store which is higher by seven percentage points from the proportion reported in 2023, demonstrating that Ontario’s cannabis users are increasingly switching to legal channels.

Ontario Cannabis Market Infographics

How Can Cannabusinessplans Templates Help Start or Grow Your Cannabis Business?

The majority of cannabis licensing programs require the submission of a business plan as part of the application for a cannabis license. Even if it is not mandated by law, a business plan is essential for securing funding and assisting an applicant in understanding how much money it will take to start a cannabis business and how much profit it could make.

A well-structured business plan can make all the difference in helping you demonstrate your proposed cannabis business’ compliance with regulations and its operational viability.

Our complete cannabis business plan template package is everything you need to create a professional business plan for a cannabis business with expert financials and projections. A complete cannabis business plan template package includes:

• Excel Financial Model: change variables and immediately see the impact, break down operational and capital costs, know how much it will take to get into the business and the potential profits.
• Word Business Plan: value proposition, market analysis, marketing strategy, operating plan, organizational structure, financial plan and more.
• PowerPoint Pitch Deck: provide a quick overview of your cannabis business plan.

Cannabis Retail Business Plan Sample, Ontario

Cannabis business plan templates for other countries are available at cannabusinessplans.com.