The legalization of cannabis in Canada on October 17, 2018 marked a significant shift in the country's approach towards the substance.
Before this landmark for recreational or adult use, medical cannabis had already been legalized in 2001
Adult-use legalization was part of a broader public policy strategy to shift away from prohibitive measures and adopt an evidence-informed public health and safety approach
With legalization, countless online weed dispensaries have emerged across Canada.
How Did the Legalization of Marijuana in Canada Impact Its Online Dispensaries?
Legalization significantly boosted the retail market for cannabis, with sales reaching more than $2.6 billion in 2020, a 120% increase from 2019.
In the first year following legalization, cannabis retailers established more than 400 brick-and-mortar stores, registering $908 million in online and retail store sales. By December 2022, retail sales in legal cannabis stores across Canada had increased to more than $425 million Canadian.
Online dispensaries and Mail Order Marijuana (MOM) services saw a notable increase in popularity, partially due to the high prices charged by brick-and-mortar dispensaries. The online platforms adapted to consumer needs and wants, significantly contributing to the cannabis industry's growth in Canada.
In 2022, the Canadian recreational market hit an all-time high of $4.6 billion sales.
What Changes in Consumer Behavior Occurred After the Legalization of Weed in Canada?
Post-legalization, consumer behavior evolved with a perceived increase in the safety and convenience of purchasing cannabis legally.
However, the rate of cannabis use among youths remained relatively stable post-legalization, indicating legalization might not have significantly impacted cannabis use among this demographic
The market transition from Cannabis 1.0 to 2.0 also reflected changes in consumer behavior, possibly influenced by the regulatory evolution and the impact of COVID-19.
Online dispensaries and mail-order marijuana services have seen a notable increase in popularity, partially due to the high prices charged by brick-and-mortar dispensaries.
What Market Trends and Future Projections May Arise as Weed Legalization Continues in Canada?
The Canadian cannabis market is projected to continue growing, with sales forecasts of 2022 at $687,831,633, and by 2027, it's expected to reach $1,212,388,867, indicating a 12.0% CAGR.
In 2022, the Canadian recreational market hit an all-time high of $4.6 billion sales, with a 13% year-over-year growth since legalization.
The industry is expected to witness changes in trends concerning provincial market shares, store locations and product category revenues over the next few years.
With the federal government considering regulating recreational edibles and extracts, the legal framework around cannabis in Canada will continue to evolve.
Whether you're someone who has considered the option to buy cannabis online or not, online dispensaries are here to stay.