Legalization Significantly Reduces Canada’s Illicit Cannabis Market

LOS ANGELES- Recent analyses indicate that Canada’s legalization of non-medical cannabis in 2018 has substantially shifted consumer spending from illicit to legal markets. Studies report that within five years of legalization, approximately 75% of cannabis expenditures transitioned to the legal sector, underscoring the policy’s effectiveness in curbing unregulated sales.

This transition is attributed to increased accessibility of legal cannabis products, competitive pricing, and enhanced consumer confidence in regulated offerings. The alignment of estimated legal expenditures with federal retail sales data further validates these findings.

Despite these advancements, challenges persist. The illicit market continues to attract consumers through lower prices and broader product selections, particularly in areas with limited legal retail options. Addressing these issues remains crucial for further diminishing unregulated cannabis sales.