Canada's Cannabis Journey: Mixed Results Five Years After Full Legalization & More

In October 2018, Canada took a bold step by legalizing recreational cannabis, with the aim of enhancing public health, improving safety and reducing the associated legal consequences and crime rates.

Since then, a multitude of studies have probed into the repercussions of this groundbreaking move, offering a nuanced perspective on the outcomes.

According to a recent commentary in the Canadian Medical Association Journal, the results are mixed.

See Also: Canada's Cannabis Market Shows Steady Growth But Lags Behind US Counterparts

Cannabis Usage Trends

Over the past five years, several aspects of cannabis usage have shown notable changes.

The prevalence of cannabis use increased by 5%, reaching 27% in 2022. This upswing in use raised concerns, particularly given the 20% spike in emergency room visits and hospital admissions related to cannabis in Ontario and Alberta, reported DW.

The number of pregnancy care episodes involving cannabis nearly doubled, and there was a concerning three-fold increase in emergency cases of cannabis poisoning among children.

Cannabis-related hospitalizations have seen a significant uptick post-commercialization between 2015 and 2021 when they rose by 1.62 times. 

See Also: Canadian Study Reveals Link Between Heavy Cannabis Use And Increased Risk Of Heart Problems

Legal Framework

Under the Cannabis Act of Canada, adults can possess and publicly use up to 30 grams of dried cannabis, with specific provincial restrictions for individuals aged 18 to 21. The law allows for retail sales in stores and online, limited home cultivation, and sales of cannabis. Furthermore, new regulations concerning cannabis-impaired driving have been implemented.

Notably, two-thirds of active cannabis users obtain their cannabis from legal sources; some provinces raised the minimum age for cannabis use to 21.

On a positive note, the rise in cannabis consumption didn't affect its prevalence among youth, which remained at pre-legalization levels. The reduction in the stigma surrounding cannabis use was a notable development, coinciding with a significant decrease in the number of arrests and charges related to cannabis, contributing positively to social justice and potentially having indirect public health benefits.

See Also: Medical Cannabis In Canada Faces Decline: What's Behind The 38% Drop In Registrations?

Economic Support For the Industry

Canadian cannabis growers and processors have gained access to financial support through the Sustainable Canadian Agricultural Partnership (CAP) program, backed by a budget of $3.5 billion Canadian dollars ($2.6 billion USD).

According to MJBizDaily, this funding could provide a lifeline to smaller cannabis businesses grappling with deflationary pressures, fierce competition and limited support from private lenders. 

However, not all has been smooth sailing.

Microbial Contamination & Labeling Errors Prompt Action

In September, licensed cannabis producers initiated recalls of thousands of cannabis products due to various issues.

  • Coulson Cannabis, based in Ontario recalled products due to microbial contamination, posing potential health risks to consumers with compromised immune systems.
  • Labeling errors emerged as a common reason for recalls, exemplified by Emblem Cannabis Corp. recalling a batch of cannabis extract for incorrect cannabinoid values.
  • Prime Pot in Nova Scotia and Cannara Biotech Quebec recalled products for these reasons. 

In response to the recalls, Health Canada recommended that consumers contact the retailers where the affected products were purchased, emphasizing the importance of safety and transparency in the cannabis industry.

Want to know more about Canada's cannabis landscape? Tune in to the Benzinga Cannabis Capital Conference in Chicago. For existing subscribers, you can get direct access through our research platform. For new users, you can get instant access here.

Read Next: Format Evolution In Canada's Cannabis Market: Pre-Rolls Drive Expansion

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