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Study breakdown

Canada's cannabis retail expansion changed use patterns more through falling prices than store count

ObservationalModerate evidence
The takeaway

Across 10 Canadian provinces from 2019-2023, falling cannabis prices were associated with increased use among women and older adults and a shift from dried flower to edibles, while rising store numbers showed no significant effect.

Cannabis regulators, public health economists, legalization policy designers

Price predicted use changes; store count did not

What the researchers found

Panel data analysis of 50 province-year observations found no significant changes in prevalence among males or those aged 16-24, and no change in daily use proportions. Prevalence among females and people aged 25+ increased, with negative associations with prices but not store counts. Dried cannabis use decreased while edibles use increased, also associated with prices but not stores. Mean initial age of use increased and was negatively associated with prices but positively with stores.

Why it matters

Policymakers often focus on limiting store numbers to control cannabis use, but this Canadian data suggests price is the more influential lever. Store proliferation had surprisingly little association with use changes, while falling prices drove both who uses and how they consume.

The numbers in context

10 provinces, 5 years, 50 observations; female and 25+ prevalence increased; edibles use increased; dried use decreased; price was significant predictor; store count was not; mean initiation age increased

How the study worked

Government data on store counts, retail pricing, and cannabis use across 10 Canadian provinces over 5 years (2019-2023). Panel data linear regressions analyzed 50 province-year aggregated observations.

What this study cannot tell us

Ecological study using aggregated province-year data cannot capture individual-level relationships. Five-year window may not capture full maturation of the legal market. Self-reported use data may underestimate actual consumption. Cannot separate price effects from product quality improvements.

How to read the evidence

Five-year panel data across all Canadian provinces provides moderate evidence of market dynamics, limited by ecological design and self-reported use data.

When this study was published

2025 publication analyzing 2019-2023 data

The bigger picture

Canada's experience with a massive legal cannabis retail expansion (accompanied by falling prices and diversifying products) provides a real-world test of how market dynamics shape use patterns. The finding that price matters more than access points has implications for taxation and pricing policy globally.

Questions still open

  • Would cannabis minimum pricing policies be more effective than store count limits at controlling use? Does the shift to edibles represent harm reduction (away from smoking) or risk escalation (delayed onset, overconsumption)?

Common questions

Did more stores lead to more cannabis use?
No. Rising store numbers were not significantly associated with changes in cannabis use prevalence. Falling retail prices were the significant predictor of both increased use and changing product preferences.
How did use patterns change?
Dried cannabis use decreased while edibles use increased. Use prevalence among females and people aged 25+ grew. Daily use proportions and youth prevalence did not significantly change.

Read the original research

Exploring Associations between Cannabis Prices, Stores, and Usage after Recreational Legalization.

European addiction research, 31(2), 125-132

Citation

Armstrong, Michael J. (2025). Exploring Associations between Cannabis Prices, Stores, and Usage after Recreational Legalization.. European addiction research, 31(2), 125-132. https://doi.org/10.1159/000544104