A study published in the International Journal of Drug Policy indicated significant changes in how individuals obtain cannabis. This study showed that most Canadian cannabis consumers have transitioned to the legal marketplace after recreational cannabis legalization in October 2018. Many cannabis users are seeking easier access to safer, higher quality cannabis products. The researchers affiliated with The RAND Drug Policy Research Center in California and Ontario’s University of Waterloo School for Public Health assessed cannabis-related purchases over 12 months in a cohort of 5,656 participants. The researchers used “demand-side” methods to determine the size of the Canadian cannabis market by analyzing using two main sources: the Canadian Community Health Survey and the International Cannabis Policy Study. They used data from the Canadian Community Health Survey to calculate the number of Canadians who use cannabis. The research team also analyzed data from surveys included in the International Cannabis Policy Study to gauge cannabis expenditures from legal versus illegal sources.
The study indicated that Canada’s legal cannabis market displaced approximately three-quarters of domestic expenditures on the illegal cannabis market. The researchers believe that lower retail prices and increased access to legal retailers has driven consumers’ transition from the unregulated market to the legal adult-use marketplace. The legal market captures roughly 78% of the cannabis market, and dried cannabis flower comprised about 60% of expenditures.
The researchers noted that the findings are consistent with prior studies on the effects of legalization. Studies focusing on United States legalization also found an increasing percentage of cannabis consumers who access the legal marketplace instead of black market operations. One study found that better access to state-licensed cannabis retailers was associated with a decrease in purchasing products from the illicit market. In states with legal cannabis programs, approximately 52% of cannabis users buy their cannabis products from regulated dispensaries. Additional research studies are needed to further illuminate post-legalization changes trends.
Sources: International Journal of Drug Policy, NORML, NORML, NORML