Research to Insights: Cannabis in Canada

Release date: October 16, 2023

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About Research to Insights

The Research to Insights series of presentations features a broad range of findings on selected research topics. Each presentation draws from and integrates evidence from various studies that use innovative and high-quality data and methods to better understand relevant and complex policy issues.

Based on applied research of valuable data, the series is intended to provide decision makers, and Canadians more broadly, a comprehensive and horizontal view of the current economic, social and health issues we face in a changing world.

Background

Canada is the first major industrialized country to provide legal and regulated access to cannabis for non-medical purposes

  • The Cannabis Act (C-45) came into force on October 17, 2018. The Act legalizes and strictly regulates the production, distribution, sale, import and export, and possession of cannabis for adults of legal age.
  • During the first year of legalization of cannabis for non-medical purposes, legal sales were limited to dried cannabis, fresh cannabis, cannabis oil, cannabis plants and cannabis seeds. Starting on October 17, 2019, a wider array of products was permitted for legal production and sale, including cannabis extracts, edibles and topicals.
  • The regulation of cannabis remains a shared responsibility of the federal, provincial and territorial governments. Provinces and territories are responsible for regulating cannabis sales and distribution in their jurisdiction. They also have the flexibility to establish more stringent controls, such as further restrictions for personal (home) cultivation, restricting public use and access to some products, or increasing the minimum legal age.

The main objectives of the Act are to keep cannabis out of the hands of youth, keep profits out of the pockets of criminals, and protect public health and safety by allowing adults access to a quality-controlled supply of legal cannabis.

For more information: Cannabis Legalization and Regulation.

By October 17, 2023, it will have been five years since cannabis was legalized for non-medical purposes in Canada

For studies about the preparations for legalization, see

Cannabis use before legalization had been steadily increasing over the last 30 years

Chart 1: Prevalence of cannabis use in Canada, 1985 to 2017

Data table for Chart 1 
Data table for chart 1
Table summary
This table displays the results of Data table for chart 1 HPS, NADS, GSS, CADS and CTUMS/ CTADS, calculated using percent units of measure (appearing as column headers).
HPS NADS GSS CADS CTUMS/ CTADS
percent
1985 5.6 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable
1989 Note ...: not applicable 6.5 Note ...: not applicable Note ...: not applicable Note ...: not applicable
1990 5.1 Note ...: not applicable Note ...: not applicable Note ...: not applicable
1993 Note ...: not applicable Note ...: not applicable 4.2 Note ...: not applicable Note ...: not applicable
1994 Note ...: not applicable Note ...: not applicable Note ...: not applicable 7.5 Note ...: not applicable
2002 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable
2004 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 9.4
2005 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 9.7
2006 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 9.5
2007 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 9.4
2008 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 9.0
2009 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 9.3
2010 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 8.9
2011 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 9.3
2012 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 10.2
2013 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 10.6
2015 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 12.3
2017 Note ...: not applicable Note ...: not applicable Note ...: not applicable Note ...: not applicable 14.8
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The rate of cannabis use more than doubled between 1985 and 2017, from 5.6% to 14.8%.

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For more information: Analysis of trends in the prevalence of cannabis use in Canada, 1985 to 2015.

Cannabis use continued to change from 2018 to 2020

Figure 1: An analysis using data from the 2018, 2019 and 2020 National Cannabis Survey

Data table for Figure 1 
Data table for figure 1
Table summary
This table displays the results of Data table for figure 1. The information is grouped by Cannabis use by province (appearing as row headers), Percentage of Canadians 15 years and older who consumed cannabis in the three months preceding the survey , Fourth quarter 2020, Change in percentage points from first quarter 2019 (after legalization) and Change in percentage points from first quarter 2018 (before legalization), calculated using percentage units of measure (appearing as column headers).
Cannabis use by province Percentage of Canadians 15 years and older who consumed cannabis in the three months preceding the survey 
Fourth quarter 2020 Change in percentage points from first quarter 2019 (after legalization) Change in percentage points from first quarter 2018 (before legalization)
percentage
Canada 20 2 6
British Columbia 25 6 8
Alberta 22 No change No change
Saskatchewan 14 No change No change
Manitoba 22 9 No change
Ontario 23 No change 10
Quebec 11 No change No change
New Brunswick 18 No change No change
Nova Scotia 27 9 No change
Prince Edward Island 22 7 8
Newfoundland and Labrador 20 No change No change

By 2021, the rates of past-year cannabis use stabilized across Canada, although regional rate differences remain

  • In 2021, the rates of cannabis use were higher than the rest of Canada in British Columbia, Alberta, Ontario, Nova Scotia and Prince Edward Island, whereas cannabis use in Quebec remained lower. 
  • Some studies conducted during the COVID-19 pandemic suggest that cannabis consumption may have increased in response to the changed daily routines and related stress.
  • Whether the higher rates of cannabis use reported during the pandemic will remain is yet to be determined, but as daily routines are reinstated and more recent data become available, this can be studied.

Chart 2: Percentage of Canadians aged 15 or older using cannabis in the previous 12 months, Canada (provinces only), 2020 and 2021

Data table for Chart 2 
Data table for chart 2
Table summary
This table displays the results of Data table for chart 2 2020 and 2021, calculated using percent units of measure (appearing as column headers).
2020 2021
percent
Canada (provinces only) Canada 22.2 22.4
British Columbia B.C. 24.4 26.0Data table for chart 2 Note 
Alberta Alta. 25.8 24.9Data table for chart 2 Note 
Saskatchewan Sask. 23.3 21.6
Manitoba Man. 21.8 21.0
Ontario Ont. 23.0 23.8Data table for chart 2 Note 
Quebec Que. 17.1 15.7Data table for chart 2 Note 
New Brunswick N.B. 23.8 23.7
Nova Scotia N.S. 27.8 31.5Data table for chart 2 Note 
Prince Edward Island P.E.I. 23.7 28.4Data table for chart 2 Note 
Newfoundland and Labrador N.L. 22.2 24.3

For more information: Canadians who report lower self-perceived mental health during the COVID-19 pandemic more likely to report increased use of cannabis, alcohol and tobacco and The Daily—Alcohol and cannabis use during the pandemic: Canadian Perspectives Survey Series 6.

Cannabis use also differs by age and increased for most age groups

  • Cannabis use is most common among 18- to 24-year-olds.
  • Use among 15- to 17-year-olds has not increased with legalization.
  • By contrast, use in other age groups rose from 2011 to 2021.

Chart 3: Cannabis use in the past 12 months, by age group, household population aged 15 or older, Canada (provinces only), 2011 to 2021

Data table for Chart 3 
Data table for chart 3
Table summary
This table displays the results of Data table for chart 3. The information is grouped by Age group (appearing as row headers), 2011, 95% confidence interval, 2012, 2013, 2015, 2017, 2019, 2021, Lower and Upper , calculated using percent units of measure (appearing as column headers).
Age group 2011 95% confidence interval 2012 95% confidence interval 2013 95% confidence interval 2015 95% confidence interval 2017 95% confidence interval 2019 95% confidence interval 2021 95% confidence interval
Lower Upper Lower Upper Lower Upper Lower Upper Lower Upper Lower Upper Lower Upper
percent
15 to 17 18.7 2.3 2.6 16.6 2.1 2.3 17.7 2.6 3.0 17.5 3.4 4.0 14.2 1.9 2.2 17.3 2.3 2.6 15.6 2.7 3.2
18 to 24 26.0 2.0 2.1 27.3 1.8 1.9 27.1 2.6 2.8 28.4 2.7 2.9 31.4 2.4 2.5 40.8 2.6 2.7 39.0 3.4 3.5
25 to 44 10.8 1.7 1.9 13.7 2.1 2.4 13.9 2.2 2.6 17.7 2.3 2.5 21.8 3.2 3.6 30.1 1.2 1.3 31.2 1.4 1.5
45 to 64 5.1 0.9 1.1 4.6 0.9 1.1 6.1 1.2 1.4 7.0 1.2 1.5 9.4 1.6 1.9 15.7 0.9 0.9 18.3 1.1 1.1
65 or older Note ...: not applicable Note ...: not applicable Note ...: not applicable 1.1 0.5 0.8 0.7 0.3 0.6 1.6 0.6 0.9 3.0 1.3 2.1 6.3 0.5 0.5 8.2 0.6 0.7
15 or older 9.3 0.7 0.8 10.2 0.8 0.9 10.6 0.9 1.0 12.3 1.0 1.0 14.8 1.3 1.4 21.3 0.6 0.6 22.4 0.7 0.7
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An objective of the Cannabis Act is to keep cannabis out of the hands of youth.

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Access to legal cannabis increased since the Cannabis Act came into force

  • By the end of 2018, there were fewer than 200 legal stores. By the end of 2020, the number of stores had increased nearly eightfold then doubled again by the second quarter of 2022. Data from the first quarter of 2023 suggest the number of stores has stabilized.

Chart 4: Legal cannabis stores, Canada, 2018 to 2023

Data table for Chart 4 
Data table for chart 4
Table summary
This table displays the results of Data table for chart 4 Quarters, 2018, 2019, 2020, 2021, 2022, 2023, Q4, Q1 and Q2, Q3 and Q4 and Q1, calculated using number of stores units of measure (appearing as column headers).
Quarters
2018 2019 2020 2021 2022 2023
Q4 Q1 and Q2 Q3 and Q4 Q1 and Q2 Q3 and Q4 Q1 and Q2 Q3 and Q4 Q1 and Q2 Q3 and Q4 Q1
number of stores
Canada 182 315 728 998 1,445 2,185 2,852 3,167 Note ..: not available for a specific reference period 3,332
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An objective of the Cannabis Act is to protect public health and safety by allowing adults access to regulated, legal cannabis.

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Canada’s cannabis sector grew from October 2018 to December 2022, but started to decline in 2023

  • The economic activities associated with cannabis have always been in the Canadian economy but were allocated to other activities.
  • Legalization made the direct measurement of the industry possible.
  • Before legalization, experimental (modelled) estimates of cannabis-related economic activity were developed to create provisional measures of production and consumption activities. 
  • The cannabis sector accounts for about 0.5% of the total Canadian economy.

Chart 5: Gross domestic product of cannabis sector, Canada, 2018 to 2023

Data table for Chart 5 
Data table for chart 5
Table summary
This table displays the results of Data table for chart 5 Millions of chained (2012) dollars (appearing as column headers).
Millions of chained (2012) dollars
2018
October 6,484
November 6,338
December 6,196
2019
January 6,890
February 6,660
March 7,012
April 7,571
May 7,972
June 8,091
July 8,419
August 8,468
September 8,475
October 9,768
November 9,059
December 8,491
2020
January 8,678
February 8,774
March 8,846
April 8,759
May 8,840
June 9,079
July 9,145
August 9,128
September 9,025
October 9,367
November 9,620
December 10,083
2021
January 9,912
February 9,790
March 10,010
April 10,038
May 10,171
June 10,380
July 10,506
August 10,439
September 10,574
October 10,810
November 10,818
December 10,956
2022
January 10,932
February 10,961
March 11,133
April 11,181
May 11,341
June 11,332
July 11,302
August 11,429
September 11,438
October 11,574
November 11,605
December 11,566
2023
January 11,451
February 11,151
March 10,927
April 10,821
May 10,750
June 10,778
July 10,830

Retail sales of non-medical cannabis are a growing fraction of the retail sales of alcohol

  • From 2019 to 2022, liquor authorities and other retail outlets sold, on average, $26 billion worth of alcoholic beverages annually in Canada.
  • In 2022, the annual sales of cannabis for non-medical purposes by provincial cannabis authorities and other retail outlets were $4.5 billion.

Chart 6: Quarterly retail trade sales of non-medical cannabis and alcohol, Canada, 2018 to 2023

Data table for Chart 6 
Data table for chart 6
Table summary
This table displays the results of Data table for chart 6 Beer, wine, liquor and Non-medical cannabis, calculated using millions of dollars units of measure (appearing as column headers).
Beer, wine, liquor Non-medical cannabis
millions of dollars
2018
Q4 6,505 156
2019
Q1 4,800 168
Q2 6,203 252
Q3 6,633 355
Q4 6,616 415
2020
Q1 5,206 485
Q2 6,513 566
Q3 7,114 737
Q4 7,036 825
2021
Q1 5,375 839
Q2 6,647 916
Q3 7,175 1,031
Q4 7,324 1,049
2022
Q1 5,351 1,030
Q2 6,789 1,125
Q3 7,377 1,175
Q4 7,401 1,190
2023
Q1 5,466 1,166
Q2 6,856 1,264
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Government revenue from the control and sale of alcohol and cannabis for non-medical purposes totalled more than $15 billion in 2021/2022 (includes net income from provincial liquor and cannabis authorities, excise taxes, retail sales taxes, other specific taxes, and licences and permits).

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For more information: The Daily—Control and sale of alcoholic beverages and cannabis, April 1, 2021 to March 31, 2022.

More Canadians getting cannabis legally or growing it

  • An estimated 68% of cannabis users reported obtaining at least some of the cannabis they consumed from a legal source in 2020, higher than before legalization in 2018 (23%) and just after legalization in 2019 (47%). Growing cannabis, either themselves or by someone else, was a supply source for 14% of consumers in 2020, higher than in 2018 (8%) or 2019 (9%).

Chart 7: Source of cannabis among cannabis consumers, 2018 to 2020

Data table for Chart 7 
Data table for chart 7
Table summary
This table displays the results of Data table for chart 7 2018, 2019 and 2020, calculated using percent of cannabis consumers units of measure (appearing as column headers).
2018 2019 2020
percent of cannabis consumers
Grown by the user or another person 8.0Data table for chart 7 Note  9.0Data table for chart 7 Note  14.2
Friends and family 47.0Data table for chart 7 Note  37.0Data table for chart 7 Note  28.6
Illegal 51.3Data table for chart 7 Note  38.1 35.4
Legal 22.9Data table for chart 7 Note  47.4Data table for chart 7 Note  68.4

For more information: Looking back from 2020, how cannabis use and related behaviours changed in Canada.

By the first half of 2023, more than 70% of the total value of cannabis consumed in Canada was from a legal (licensed medical and non-medical) source, an increase from 22% in the fourth quarter of 2018, when legalization had just begun

Chart 8: Cannabis household expenditures, by source, 2018 to 2023

Data table for Chart 8 
Data table for chart 8
Table summary
This table displays the results of Data table for chart 8 Non-medical use (licensed), Non-medical use (unlicensed) and Medical use (licensed), calculated using millions of dollars units of measure (appearing as column headers).
Non-medical use (licensed) Non-medical use (unlicensed) Medical use (licensed)
millions of dollars
2018
Q1 0 1,232 154
Q2 0 1,254 147
Q3 0 1,304 133
Q4 175 1,190 153
2019
Q1 185 1,152 155
Q2 274 1,072 152
Q3 393 954 151
Q4 457 894 145
2020
Q1 537 855 139
Q2 626 820 140
Q3 821 788 126
Q4 919 764 121
2021
Q1 935 749 114
Q2 1,021 716 113
Q3 1,150 694 111
Q4 1,170 660 105
2022
Q1 1,150 639 107
Q2 1,254 609 107
Q3 1,319 591 92
Q4 1,336 580 104
2023
Q1 1,308 577 92
Q2 1,408 570 93
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An objective of the Cannabis Act is to reduce or eliminate the illegal market.

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Dried cannabis is the most popular product sold in the legal market and is also the product used by most consumers

  • Self-reported National Cannabis Survey data also show that about 7 in 10 Canadians who reported using cannabis in 2020 consumed dried flower or leaf, while 41% reported consuming edible cannabis products.

Chart 9: Dried cannabis was the most popular type of cannabis product sold in the legal market, accounting for 71% ($2.8 billion) of total value of legal, non-medical, retail sales in 2021 and 2022

Data table for Chart 9 
Data table for chart 9
Table summary
This table displays the results of Data table for chart 9 Percent (appearing as column headers).
Percent
Dried flower/ leaf 71.1
Inhaled extracts 18.1
Ingested extracts 3.9
Solid edibles 4.1
Beverages 1.5
Topicals, seeds and other cannabis products 1.3
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By affording adult consumers the option to purchase a wider array of legal cannabis products beginning in October 2019 has helped the legal industry compete with the illegal market.

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For more information: The Daily — Control and sale of alcoholic beverages and cannabis, April 1, 2021 to March 31, 2022 and Looking back from 2020, how cannabis use and related behaviours changed in Canada.

Cannabis-related drug offences drop as a result of legalization

  • Before legalization, cannabis possession was almost always illegal and accounted for the majority of cannabis-related drug offences.
  • After legalization, total cannabis-related offences fell overall, and now most offences are related to illicit importation and exportation.

Chart 10: Police-reported rates of all cannabis-related drug offences declined most years since 2011

Data table for Chart 10 
Data table for chart 10
Table summary
This table displays the results of Data table for chart 10 Rate per 100,000 population (appearing as column headers).
Rate per 100,000 population
2001 219
2002 222
2003 193
2004 213
2005 188
2006 183
2007 191
2008 197
2009 195
2010 221
2011 228
2012 212
2013 210
2014 194
2015 171
2016 154
2017 136
2018 99
2019 45
2020 34
2021 36
2022 28
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By allowing the possession of legal cannabis for adults, the Cannabis Act keeps Canadians who consume cannabis out of the criminal justice system.

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For more information: Police-reported crime statistics in Canada, 2017, Police-reported crime statistics in Canada, 2018, Police-reported crime statistics in Canada, 2019Police-reported crime statistics in Canada, 2020 and Police-reported crime statistics in Canada, 2021.

Cannabis use can be harmful

  • According to a 2023 Health Reports study, 4.7% of past-year cannabis consumers (300,000 people) experienced impaired control over their use of cannabis.
  • Impaired control is a key element of dependency (addiction).
  • Monitoring the number of Canadians at risk of developing a cannabis addiction is important, as addiction can harm health and negatively affect school performance, work and financial well-being.
  • An improved understanding of the patterns of use and the characteristics of the people vulnerable to dependency could help with the development of more effective policy, prevention and education initiatives.

Factors independently associated with a cannabis user’s risk of developing impaired control (element of dependency), included

  • frequently using cannabis
  • being male
  • being 18 to 24 years old (compared with being older)
  • being single or never married (compared with being married or in a common-law relationship)
  • being from a lower-income household (compared with being from a higher-income one)
  • having been diagnosed with an anxiety or mood disorder
  • having started using cannabis by age 15 or younger (compared with starting at age 16 or 17).

For more information: Using the Severity of Dependence Scale to examine cannabis consumers with impaired control in Canada.

Summary of key findings

  • It has been five years since cannabis for non-medical purposes was legalized. During this time, Statistics Canada has been contributing to an improved understanding of the social, health and economic impacts of this policy change.
  • Some encouraging findings since legalization include an increase in the share of cannabis obtained from legal sources from 2018 to 2023, a decrease in the number of cannabis-drug offences (since legalization, possession is not considered a criminal offence, although there are exceptions), and no increase in rates of cannabis use among 15- to 17-year-olds.
  • Cannabis can be harmful, and some Canadians struggle with impaired control over their use. People experiencing impaired control also experience other harms and difficulties.
  • Cannabis use monitoring and research remain important given that legal non-medical use by adults in Canada is a recent policy change, the legal retail industry continues to adjust and mature, and the Cannabis Act regulations are under review. 

Next steps

  • Continue to collect and analyze information on cannabis consumers and the cannabis sector:
    • National Cannabis Survey, in collection from July to October 2023
    • Canadian Tobacco and Nicotine Survey, released September 2023
    • Canadian Community Health Survey, annual
    • Mental Health and Access to Care Survey, released September 2023
    • Monthly Retail Trade Survey.
  • Contribute to policy-relevant information.
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For more information, please contact
analyticalstudies@statcan.gc.ca

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