Israel's Cannabis Imports and Supply

For a country famous for cannabis science and cultivation, Israel relies on imports to a surprising degree. Understanding where the flower actually comes from explains much of what drives prices, policy fights and supply risk in the Israeli market. This guide maps the supply chain.

This guide is informational and is not investment advice.

Domestic cultivation isn't enough

Israel grows a substantial share of its own cannabis — but not enough to meet demand. Roughly one-third of products consumed are imported, with the balance produced by licensed domestic cultivators (GrowerIQ). To put scale on the flow: in a single month in 2025, Israeli pharmacies processed upwards of 302,000 approved flower packages (GrowerIQ).

Canada is the dominant source

Among importers, one country stands out. Canada supplies roughly 80% of Israel's cannabis imports, with around 20 tonnes shipped in 2024 — about a quarter of total market volume (GrowerIQ). Smaller volumes come from countries including Uganda, Ethiopia and Germany. This concentration on a single foreign supplier is the structural fact behind Israel's cannabis trade politics.

Why flower dominates

The supply story is really a flower story: dried flower accounted for over 94% of medical cannabis usage by 2025 (GrowerIQ). Because flower is the overwhelming format, anything affecting flower supply — import costs, tariffs, a regulatory move against smokable formats — hits the entire market, not a niche of it.

Why supply is exposed to trade policy

Import dependence means trade policy is cannabis policy in Israel. The clearest example: a proposed anti-dumping duty of up to 165% on Canadian cannabis, advanced after officials concluded Canadian producers were selling below cost, then rejected by the finance minister over fears of higher patient prices and a boost to the illicit market (covered in our Regulation hub). With 80% of imports from one country, a single trade decision can ripple straight through to pharmacy prices — see how much medical cannabis costs.

The strategic irony

Israel exports its cannabis expertise — research, standards, clinical credibility — while importing much of the actual product, because cheaper foreign flower undercuts higher-cost domestic cultivation. That mismatch is the same one that limits Israel's export industry: the country competes on quality and science, not on low-cost production.

The takeaway

Israel's supply is import-dependent, Canada-concentrated and flower-dominated — a combination that makes it efficient in normal times but fragile to trade shocks. For demand-side context, see patient numbers and market size; the full overview is in our Market hub.