Since Canada legalized recreational cannabis in 2018, its consumption, sales, and impact on society have evolved rapidly. With over one-third of adults reporting cannabis use in 2023, the country has seen significant changes in user demographics and preferences. Legal cannabis sales have increased, with more people opting for regulated products due to concerns over safety and legality.
Cannabis legalization has not only influenced consumer behavior but also reduced cannabis-related drug offenses. In addition, the Canadian Wastewater Survey has revealed increased cannabis usage across major cities, providing valuable, anonymous data.
Cannabis Use Among Canadian Adults
In 2023, over one-third of Canadian adults reported using cannabis in the past 12 months. For adults aged 25 to 44, the usage rate was 34.5%, while those aged 45 and older showed a lower rate of 15.5%. Daily or near-daily use was highest in younger adults, with 10.3% of those aged 25 to 44 using cannabis almost every day.
Sales Growth in Canada’s Cannabis Market
Recreational cannabis sales in Canada reached $4.7 billion during the 2022/2023 fiscal year, marking a 15.8% increase. A significant part of this growth came from the rising popularity of inhaled extracts, which saw a 59% sales increase. Despite the growing interest in extracts, dried cannabis remained the top-selling product, accounting for nearly two-thirds of all cannabis sales. On average, legal-aged Canadians spend about $150 annually on cannabis products.
Government Revenue from Cannabis
The federal and provincial governments collected $1.9 billion in revenue from cannabis sales in the 2022/2023 fiscal year. This was a 24.2% increase from the previous year, highlighting the economic benefits of cannabis legalization. Taxes and fees from cannabis sales contributed a significant portion of this revenue. Legal cannabis continues to be a growing source of income for both levels of government in Canada.
Growth of Legal Cannabis Purchases
More than two-thirds of Canadians who consumed cannabis in the last 12 months bought it from legal sources. Among these consumers, 71.7% made their purchases exclusively from licensed cannabis stores. The top reasons cited for choosing legal products were safety concerns, convenience, and a desire to follow the law. Canada currently has over 3,000 legal cannabis retail outlets, making it easier for consumers to access regulated products.
Decline in Cannabis-Related Offenses
With the legalization of cannabis, cannabis-related drug offenses in Canada have decreased. Prior to legalization, possession made up the majority of offenses. In 2022, two-thirds of cannabis-related offenses were for illicit importation or exportation, while only 12% involved possession. Legalization has shifted law enforcement efforts toward curbing illegal cannabis imports and exports rather than personal use.
Cannabis Dependency and Health Risks
A recent study found that frequent cannabis use may indicate dependency, with nearly three in four daily users struggling to control their consumption. This puts many users at risk of developing cannabis use disorder. The study highlighted the importance of recognizing the potential health risks associated with heavy cannabis use. As consumption rates increase, addressing these concerns becomes more critical.
Wastewater Testing for Cannabis Use
The Canadian Wastewater Survey has been collecting anonymous cannabis usage data from various cities since 2019. Wastewater samples provide nearly real-time data on drug consumption across communities. This method offers a cost-effective way to monitor cannabis use trends without infringing on personal privacy. The survey has shown a significant rise in cannabis use in several major cities since its inception.
Economic Impact of Legal Cannabis
Cannabis legalization has provided a boost to the Canadian economy. In addition to generating significant government revenue, the industry has created thousands of jobs across production, retail, and regulation sectors. The growing legal cannabis market continues to support local economies through job creation and new business opportunities. As the industry expands, its contributions to the economy are expected to grow.
Cannabis Use in Young Adults
Cannabis use remains highest among young adults aged 18 to 24. In 2023, 38.4% of individuals in this age group reported using cannabis in the past year. Daily or almost daily use was also higher in younger adults compared to older age groups. The legalization of cannabis has contributed to greater openness about consumption among younger Canadians.
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