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Tuesday, Aug 19, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Canada's regulated cannabis market has largely overtaken the illicit sector: report
Canada's regulated cannabis market has largely overtaken the illicit sector: report
Canopy Growth Corp (TSE: WEED) (NASDAQ: CGC), based in Ontario, is one of the nation's leading producers. Photo credit: Canopy Growth

Cannabis

Canada’s regulated cannabis market has largely overtaken the illicit sector: report

The percentage of citizens buying legal pot rose from 41% in 2020 to 78%, data shows

Canada’s legal cannabis sector has been slowly but steadily overtaking the illicit market. Approximately 78 per cent of citizens now source their marijuana for licensed sources, according to a new analysis.

On Aug. 4, an International Cannabis Policy Study report on the growth of the nation’s regulated sector was published in the journal Drug and Alcohol Review.

Based on data collected from nearly 2,700 regular users, the investigation showed that the vast majority of consumers procured all of their weed from legal sources within the past year. The authors highlighted that the declining price of cannabis in local dispensaries was a key factor inspiring users to refrain from illicit products.

“Most consumers reported purchasing from the legal cannabis market, reflecting considerable progress towards Canada’s objective of displacing illegal sources through the creation of a legal cannabis market,” the investigators specified.

They say their findings showcase that the strain illicit distributors have put on Canada’s licensed pot sector has been diminishing immensely in recent years.

Government data has shown that the percentage of Canadians who procure their cannabis goods from legal sources has risen from a mere 23 per cent post-legalization in late 2018.

Five out of eight researchers responsible for the new report are from the University of Waterloo. The others are from the University of Southern California; the RAND Drug Policy Research Center in Santa Monica, CA; and the University of Bath in the United Kingdom.

Concerns about the illicit sector’s impact were outlined in a recent open letter to Prime Minister Mark Carney from dozens of Canadian industry leaders. It described the illegal sector as the nation’s greatest obstacle for key public policy objectives like keeping marijuana out of the hands of youth.

“Elements of a comprehensive strategy should include tackling illegal production, shutting down illegal storefronts and illegal online sales, interdicting shipment of illegal product and a public awareness and education campaign on the dangers of supporting the illicit market,” they stated.

Read more: High Tide secures foothold in German medical market after stalled January attempt

Read more: Village Farms to complete massive cultivation expansion in BC

 

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