5 years of cannabis legalization in Canada: what has been achieved?

Cannabis legalization in Canada is celebrating its 5th anniversary. A thorny issue during Justin Trudeau's first term in office, it has not been called into question by the federal government, but brings its share of concerns for the companies involved, as well as new health and social issues. How would you sum up these 5 years of legal cannabis?

Society: Changing attitudes and challenges

In the first half of 2023, over 70% of the cannabis consumed in Canada came from legal sources, a significant increase compared with 22% recorded in the fourth quarter of 2018, just after legalization.

The legalization of cannabis has considerably reduced the stigma associated with it, without encouraging its use. Consumption remains most prevalent in the 18-24 age group. Statistics Canada reports that consumption among 15-17 year-olds has also not increased since legalization, which was one of the main concerns of legalization's detractors. And the average age of initiation has also risen slightly over time.

However, the provinces are not not on the same footing. In Manitoba and Quebec, for example, it is still forbidden to grow cannabis at home for non-medical purposes. The lack of diversity of legal products in Quebec - for example on the edibles or sweet vape pen still banned - leaves many consumers unsatisfied and leaves this category of products to the illicit market.

Justice: Decrease in cannabis-related cases

Quite mechanically, the number of cannabis-related court cases fell by 73% for women and 83% for men. Cannabis-related offences reported by the police fell from 99 per 100,000 inhabitants in 2018, the year of legalization, to 28 per 100,000 inhabitants five years later.

Health: Mixed results

While cannabis legalization has opened new doors for recreational consumers, it has also raised health concerns.

A study in Ontario and Alberta reported an alarming 20% increase in cannabis-related poisoning and disorders. Another study in Ontario revealed a thirteen-fold increase in emergency room admissions due to cannabis. cannabinoid hyperemesis syndrome, often due to repeated heavy consumption.

The number of pregnant women exposing their fetuses to cannabis during pregnancy has doubled, and hospital visits for children ingesting cannabis have tripled. In addition, the incidence of car accident victims with THC in blood doubled from 3.8% to 8.6%.

The consensus is that more prevention and education are needed to effectively tackle these health challenges.

Legal Access and Trade: Economic Impact and Industry Challenges

From an economic point of view, Canada's federal government is the main beneficiary of cannabis legalization. The legal cannabis industry contributed 30 billion euros estimated gross domestic product in Canada since legalization, the recreational market around 3 billion euros annually.

Nevertheless, cannabis businesses are struggling to be profitable. Only around 20% of cannabis growers are currently reported to be cash flow positive, reflecting the sector's economic difficulties. Although legal access to cannabis is widespread, the commercial cannabis landscape is not without its challenges.

In bulk :

• Over-regulation of the cannabis industry limits products, leads to higher regulatory costs and limited advertising opportunities for businesses
• Heavy taxation of cannabis businesses squeezes margins. Several business moves call for reasonable taxation
• Despite Canada's federal legal framework, exports of recreational cannabis products are currently prohibited, which has an impact on the industry's potential for global expansion.

As Canada celebrates five years of cannabis legalization, the regulatory process has been marked by successes and new challenges. In any case, it has inspired a growing number of countries that have since taken a few steps forward: Malta and Germany for legalization around Cannabis Clubs, Luxembourg on self-cultivation, Thailand on broad decriminalization and Switzerland on city-by-city legalization experiments. The beginning of the domino effect?