Most Canadian cannabis consumers have transitioned to the legal marketplace in the years following nationwide legalization, according to new data published online in the International Journal of Drug Policy.

Researchers affiliated with The RAND Drug Policy Research Center in California and the University of Waterloo School for Public Health in Ontario assessed marijuana-related purchases over 12 months in a cohort of 5,656 participants.

Consistent with prior studies, investigators reported, “Canada’s legal cannabis market has displaced approximately three-quarters of domestic expenditures on the illegal cannabis market four years after federal legalization of non-medical cannabis.”

Specifically, researchers acknowledged 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 findings provide evidence of substantial transition from the illegal to the legal market in the five years since the legalization of non-medical cannabis in Canada,” the study’s authors concluded. “Since the opening of legal retail stores in Canada in October 2018, legal retail sales have increased in a linear fashion, with no indication of a ‘plateau’ up to five years after legalization.”

Data compiled in the United States also reports that a growing percentage of consumers are transitioning to the legal marketplace. According to a 2023 survey, 52 percent of consumers residing in legal states said that they primarily sourced their cannabis products from brick-and-mortal establishments. By contrast, only six percent of respondents said that they primarily purchased cannabis from a “dealer.” Many consumers residing in non-legal states also reported that they frequently traveled to neighboring legal states to purchase cannabis products and return home with them.

A separate US economic study similarly reports that consumers are most likely to transition to the legal marketplace in jurisdictions where state-licensed retailers are widely available. According to the study’s findings, “States with roughly 20 to 40 legal regulated stores per 100,000 residents, in general, have captured 80 percent to 90 percent of all cannabis sales in the legal market.”            

Commenting on the studies’ findings, NORML’s Deputy Director Paul Armentano said: “These data indicate that legal, regulated cannabis markets are displacing the underground marketplace. Over time, consumers are becoming more comfortable with and more reliant upon licensed retailers – which typically offer greater convenience, product quality, and safety.”

The full text of the study, “Transitions to legal cannabis markets: Legal market capture of cannabis expenditures in Canada following federal cannabis legalization,” appears online.