Canada’s cannabis retail industry is maturing fast, but when it comes to digital transformation, the story is still being written.
That’s why Breadstack commissioned and released the State of Cannabis Technlogy 2025 Report — the most comprehensive snapshot yet of how cannabis retailers are adopting eCommerce, leveraging technology, and preparing for the next phase of industry growth.
The report combines multiple datasets with survey responses from over 350 store owners, managers, and budtenders across Canada, providing a rare dual perspective: real sales data paired with on-the-ground sentiment from the people who live cannabis retail every day.
The findings? A mix of optimism, opportunity, and a clear message – the digital transformation of cannabis retail has only just begun.
Why We Created This Report
Over the past few years, Breadstack has worked with cannabis retailers from coast to coast. From local independents to multi-location operators, one trend kept surfacing: while store counts were growing, the technology behind them wasn’t always keeping up.
We wanted to understand why.
So we partnered with Dr. Zach Walsh, hibuddy, and other partners in the industry to collect data and survey store owners, managers, and budtenders — the people closest to the consumer experience and layered those insights on top of our internal data from retailers nationwide.
The result is a data-backed benchmark report designed to answer key questions:
How are cannabis retailers using eCommerce today?
What challenges are holding back online growth?
Where are the biggest opportunities — from delivery to loyalty programs?
And how do employees, especially budtenders, feel about working in this industry?
What We Found: A Sector Still Early in Its Digital Journey
The first insight is both surprising and telling: online sales remain a small fraction of total cannabis revenue.
Nearly half of store owners reported that eCommerce accounts for less than 10% of their total sales, and only 6% said it exceeds 20%. In other words, even after five years of legalization, digital channels are still underdeveloped in a category that relies heavily on convenience and consumer education.
That doesn’t mean customers aren’t buying online — quite the opposite. When they do, they spend more.
The data shows that one in three delivery orders exceed $70, compared to fewer than 10% of in-store transactions. Delivery isn’t just a convenience; it’s a growth driver.
Yet despite this clear revenue opportunity, many retailers report frustration with their eCommerce tools.
Only 14% of respondents said they are “very satisfied” with their current provider, and one in four said they chose their platform simply because it was the only one available at the time.
The takeaway: technology adoption isn’t just about access — it’s about experience. Retailers need platforms that are easier to use, more integrated, and purpose-built for cannabis.
Regulation, Competition, and Complexity
Canada’s cannabis sector remains one of the most tightly regulated retail industries in the world — and that reality shapes nearly every operational decision.
In our survey, 48% of store owners and managers cited provincial regulations and 41% pointed to federal rules as major barriers to innovation. Compliance requirements around advertising, age verification, and payment options make it difficult for retailers to experiment or expand online.
Add to that the ongoing challenge of illegal competition — 40% of respondents said unlicensed online sellers continue to undercut legal prices — and it’s easy to see why legitimate operators face an uphill climb.
Even with these obstacles, the tone of the industry isn’t cynical. It’s ambitious.
Retailers know the market is maturing, and they’re looking for smarter ways to operate. Many are already investing in integrated delivery, digital loyalty programs, and data-driven marketing to bridge the gap between physical and digital commerce.
The Human Factor: Budtenders as Educators and Influencers
One of the most encouraging findings comes from the frontline of cannabis retail: the budtenders.
Budtenders are not just salespeople — they’re educators, community connectors, and trusted guides for consumers navigating product choice and wellness questions.
Our data shows that 83% of budtenders are under 45, and over half say their overall wellbeing improved since joining the industry.
Even more promising, 87% report being more satisfied in cannabis than in previous jobs.
Their passion for product knowledge is also striking. Budtenders expressed strong interest in learning more about terpenes, effects, and the science behind cannabis — with more than half already engaging in workshops or online training.
But while enthusiasm is high, digital empowerment is still catching up. Many reported low confidence in managing eCommerce tools like online menus or loyalty dashboards.
This is a critical gap — one that smarter technology and better training can close.
When budtenders have the right tools, they can become powerful digital ambassadors, helping translate in-store expertise into online engagement.
An Industry on the Verge of Growth
Despite operational and regulatory hurdles, optimism runs deep.
Two-thirds of store owners predict significant growth in eCommerce and loyalty programs over the next two years, and more than half see delivery as a core part of their future business model.
In short, the foundation has been laid — now it’s time to scale it.
The cannabis industry has matured rapidly in brick-and-mortar retail. The next phase of growth will come from integrating technology, data, and human experience to deliver more connected, compliant, and customer-centric operations.
At Breadstack, we see this report as more than a benchmark — it’s a roadmap.
As an all-in-one retail technology platform, Breadstack helps dispensaries connect their eCommerce, POS, delivery, and loyalty systems — giving operators a unified view of performance while simplifying compliance.
This kind of integration is what the report’s findings point toward: a future where cannabis retailers don’t have to choose between compliance and creativity — they can have both.
Download the Report
The State of Cannabis Tech 2025 Report is now available for free download.
Inside, you’ll find detailed insights, data visualizations, and regional comparisons that shed light on how Canada’s cannabis retailers are adapting, growing, and preparing for what’s next
