Legal cannabis market is one of the biggest contributors to Canada's GDP

Since Canada adopted full legalization, the cannabis industry has contributed the most to the country's gross domestic product (GDP), exceeding 43 billion Canadian dollars (29,4 billion euros), according to a report. gives Deloitte, cited by CTV News. The legal cannabis industry has contributed more to Canada's GDP than most other sectors, according to Statistics Canada data, cited by a Bloomberg analysis.

Three years after the regulation of adult use, the legal cannabis market has generated more for the Canadian economy than important sectors such as the Media, iron, gold, potassium and copper mining, meat, breweries, clothing or wood products – even close to overtaking the car manufacturing industry.

In 2018, Canada became the second country in the world to legalize cannabis for all purposes, including cultivation, production, sale, possession and consumption, after Uruguay, which was the first to fully legalize the plant in 2013.

Three years after the policy went into effect, the Canadian government analyzed the evolution of legalization in order to scrutinize the impacts on public health, resolve any problems that have arisen during this period and stabilize the industry.

A spokesperson for the Ministry of Health, the body responsible for regulating the law, told Bloomberg that “as with any new legislation, especially for something as comprehensive as the Cannabis Act, there will always be room for improvement and adjustment, for ensuring that [the law] is fulfilling its objectives: keeping cannabis out of the hands of young people, while keeping profits away from organized crime.”

Cannabis market on the rise

The most optimistic analyzes of experts have to do precisely with the positive impacts of the legal cannabis market on the country's economy. data of New Frontier Data reveal that since legal cannabis sales began in Canada in October 2018, there has been a progressive and steady increase in the market. More than 1,3 billion Canadian dollars worth of non-medical cannabis products were sold in the second quarter of 2021, marking an increase of almost 12% over the previous quarter. New Frontier Data projects that by 2025, that number will rise to 5,2 billion.

Sales growth was supported by the introduction of edibles and topicals in late 2019. While dried flowers still dominate the market, accounting for 73% of spend across all categories in Q21 XNUMX, that margin is shrinking.

Um Statista chart shows the precise evolution of monthly sales of legal cannabis stores in Canada from October 2018 to November 2021, which was the fastest growing in recent years.

“Cannabusiness” or the cannabis business

The cannabis industry market has been the fastest growing in Canada in the last three years, representing one of the most important for the national GDP. There are more than 2.700 physical legal cannabis stores open to the public across the country, all of which have helped eradicate the illegal market and organized crime, one of the main objectives of Canadian legalization policy.

Currently, the illicit market in Canada accounts for just 39% of the market, down from 91% when legalization began three years ago. The market is expected to double in size next year, especially now that the market is adjusting to legalization and a government review of the law is being carried out in order to continue to regulate the necessary points.

Cannabis consumption by young people has dropped and edibles have increased 

Um survey conducted by Statistics Canada in 2021 found that consumption among young people has declined after legalization, with men accounting for a higher percentage of cannabis use than women. Reported use in the last 12 months declined between 2020 and 2021 among 16-19 and 20-24-year-olds.
As for consumption methods, the majority of users (74%) used dried flowers for smoking, a low compared to 2020, with only 18% opting for hashish. Other consumption methods were edibles or food (which increased from 49 to 53%), vaping using a vape pen or e-cigarette (29%), oral cannabis oils (26%), beverages (16% ), vaporization using a vaporizer (10%), topical applications (9%), or dabbing (6%).

About 6% use self-cultivation to obtain cannabis legally
Other study by the National Cannabis Survey of Canada, published in PubMed, analyzed the first quarters of 2018 and 2019 and the fourth quarter of 2020 to examine changes in cannabis use (general use and daily or near daily use), consumption methods, products and sources. Cannabis use in the last three months was higher at the end of 2020 (20,0%) than in 2019 (17,5%) and 2018 (14,0%), and was mainly among: women (for whom the rates rose, to match male rates for the first time) and adults aged 25 and over. Likewise, daily usage, set at 7,9%, also increased. Higher percentages of Canadians reported getting their cannabis from legal sources or through self-cultivation. In the survey conducted by Statistics Canada, about 6% of Canadians reported that their plants were obtained through self-cultivation and 7% reported preparing cannabis edibles or drinks at home.