Canada's recreational cannabis sales were limited by product shortages and then by stores openings

What is it about?

This research examines why legal cannabis sales met only 24% of Canadian demand after 12 months of legalization, and why provincial results varied widely. Dry cannabis product shortages limited legal sales to just 11% of national consumption for the first 6 months. Shortages faded in spring 2019, letting legal sales grow thereafter mostly in proportion to store openings. Ontario’s sales met only 13% of cannabis demand by Sep 2019 due to its lack of stores. By contrast, PEI’s legal sales represented 70% of usage thanks to sufficient supplies, ample shops, and moderate prices. Other legalizing countries like Mexico & Israel should heed those lessons.

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Why is it important?

Canada was only the second country to legalize recreational cannabis, and the first to extensively involve both public sector and private sector retailing. Its experiences offer lessons to other countries that are considering legalization. The study's results contradict federal Minister Blair's repeated assurances that product supplies were adequate during the first 6 months. (There might have been ample raw material, but not enough finished goods.) The results also contradict the claims of Ontario Ministers Downey and Phillips that the cannabis shortage still existed in July 2019. This means that province’s August 2019 store license lottery was unneeded. The government's delays in licensing stores left Ontario as the least successful province at supporting legal sales.