October 17th marked the fifth anniversary of the legalization of recreational cannabis in Canada (medical cannabis has been approved since 2001), making it the second country after Uruguay to implement this measure. Five years after the green light, progress has been made that confirms the correctness of the decision. However, there are still unanswered questions. Prime Minister Justin Trudeau noted on the day the measure came into force: “Legalization will hit criminal groups and protect young people.” 70% of the total value of cannabis consumed in the country in the first half of 2023 came from legal sources. In the first few months of legalization it was 22%. At the same time, the number of authorized branches has increased significantly (now there are 3,300), as has the product range in these branches.
On the eve of legalization, various voices warned of the danger of a drastic increase in consumption. In reality, this increase has been happening for decades, even without legalization. In 1985, 5.6% of Canadians over the age of 15 used it; In 2017 it rose to 14.8% and in 2021 to 21%. The group that currently consumes the most is people between 18 and 24 years old.
The black market has lost most of the pie, but dollars continue to come into the market for obvious reasons. Although prices in authorized stores have fallen, they are still unaffordable for certain segments of the population. In addition, criminal groups offer products with a high concentration of THC (the main psychoactive component of the plant), which are restricted through legal means based on recommendations from health authorities. Experts in Quebec continue to criticize the provincial government’s decision to raise the legal purchasing age. In January 2020 he turned from 18 to 21 years old: pure oxygen for sale on the street.
Canadian legalization attracted global interest as a measure to combat organized crime and public health. also in public finances and in an industry with organized papers. While legal sales in the first month of the new framework were around 42 million Canadian dollars (28.7 million euros), in July of this year they reached 446 million (305 million euros).
A “shot” for the state
Trudeau’s legalization plan caused great excitement among those who wanted to try their luck in the industry. After five years of implementation, significant amounts are flowing into public coffers. For every dollar of products sold, the various levels of government collect 47 cents in excise and sales taxes. However, only a few production companies report profits. Most of them complain about the high investments in infrastructure, strict regulations and lack of public support. In February, a producer group filed a lawsuit against Canadian banks for “financial discrimination” in lending.
The legalization of cannabis is taking up less and less space in public opinion. Currently the discussion is focused more on other medications. Ottawa has approved the use of hallucinogens such as psilocybin and MDMA to treat certain mental health conditions. Some companies are already thinking about plans to bring these substances into the legal arena. Likewise, various sectors are calling for the decriminalization of hard drugs as part of efforts to curb the wave of overdoses, mainly due to opioids.
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