Uruguay: After four years of legalization, almost half of sales are on the legal market

After more than four and a half years of legalization, Uruguay's legal cannabis market serves between 391,000 and 561,000 cannabis users in the country.

This data, derived from a recent report the’Institute for the Regulation and Control of Cannabis (IRCC) and reported by Stratcann, are based on a consumer survey conducted in August and September 2021 and cover the market through December 2021.

The survey estimates that there are approximately 250,000 cannabis users over the age of 18—the legal age for cannabis use—in the country, which has a population of about 3.5 million, representing approximately 7.1% of the total population. This figure represents 10% of the approximately 2.6 million Uruguayans of legal age.

Uruguay legalized cannabis in 2013, but did not begin retail sales until July 2017. Consumers can register at one of the following three registration points : purchase cannabis from a few dozen authorized pharmacies, grow their own cannabis, or grow it as part of a cooperative where members share the cultivation tasks.

Although, at first, only a handful of pharmacies Although only a small number of them were participating in the program, their numbers have grown in recent years, leading to an overall increase in legal sales.

Cannabis sold in pharmacies comes in 5-gram packages, with a monthly limit of 40 grams. As of February 1, the price of a 5-gram packet of dried cannabis flowers in pharmacies was set at 390 Uruguayan pesos, or about €10. Consumers can choose from four different cannabis strains sold in 5-gram packets, called Alfa I, Alfa II, Beta I, and Beta II, with approximately 2.1% CBD and 9.1% THC, depending on the variety.

The average monthly purchase at pharmacies in 2021 was approximately 15 grams.

Fairly wide legal sales range

Although the survey data show that only 29% of respondents reported having access to cannabis through legal channels, 43% reported sharing it with friends and family, which would represent approximately 39% of the total market.

Since the license to grow one’s own cannabis is valid for only three years, policymakers estimate that if these licenses were automatically renewed, it would bring the total number to approximately 56% of the total market.

As of December 31, 2021, there were 47,515 people registered to purchase cannabis at a pharmacy, while 13,441 were registered to grow their own cannabis, and another 7,032 were registered to grow cannabis in one of the 220 registered cultivation collectives in the country.

Only 53% of those registered to purchase cannabis at a pharmacy actually did so in 2021.

From January to December 2021, the number of people registered in the regulated market increased by 111% and the number of people registered with a cultivation club or cooperative increased by 311%. 58 new cannabis clubs were registered in 2021.

A recent study showed that the The legalization of cannabis in Uruguay has not led to an increase in consumption among young people.