Legal and Illegal Cannabis Prices Are Converging Five Years After Canadian Legalization
Five years after legalization, 78% of Canadian cannabis purchases came from legal sources, with price gaps narrowing though legal dried flower, vapes, and hash still cost more.
Quick Facts
What This Study Found
Among 2,686 Canadian cannabis consumers, 78% of purchases came from legal sources. Legal dried flower cost 23.8% more than illegal, vapes 18.7% more, and hash 38.4% more. Legal capsules were 28.4% cheaper. No significant price differences for edibles, drinks, concentrates, drops, or tinctures.
Key Numbers
2,686 respondents. 78% from legal sources. Legal premiums: dried flower +23.8%, vapes +18.7%, hash +38.4%. Legal discount: capsules -28.4%.
How They Did This
National surveys in 2022-2023 among Canadians aged 16-65 as part of the International Cannabis Policy Study. 2,686 respondents reported price, quantity, and source for nine product types.
Why This Research Matters
Price competition between legal and illegal markets is central to legalization's success. This data shows meaningful progress in Canada, with most purchases now from legal sources and price gaps narrowing.
The Bigger Picture
Canada's experience offers lessons for other countries. The 78% legal market share suggests the regulated market has largely succeeded, though persistent premiums for dried flower indicate room for further competition.
What This Study Doesn't Tell Us
Self-reported prices and sources. Cross-sectional. No quality comparison between markets. Quantity discounts complicate comparisons.
Questions This Raises
- ?Will legal market share continue to grow?
- ?What role does product quality play beyond price?
- ?Are quantity discounts in illegal markets a barrier to full legal transition?
Trust & Context
- Key Stat:
- 78% of purchases from legal sources
- Evidence Grade:
- Moderate: large national survey with product-level data, but self-reported prices.
- Study Age:
- Published in 2025, with data from 2022-2023.
- Original Title:
- Self-Reported Cannabis Prices and Expenditures From Legal and Illegal Sources Five Years After Legalisation of Non-Medical Cannabis in Canada.
- Published In:
- Drug and alcohol review, 44(6), 1658-1665 (2025)
- Authors:
- Rundle, Samantha(2), Hong, Daniel Danh, Iraniparast, Maryam(4), Rynard, Vicki, Wadsworth, Elle, Pacula, Rosalie Liccardo, Kilmer, Beau, Hammond, David
- Database ID:
- RTHC-07531
Evidence Hierarchy
A snapshot of a population at one point in time.
What do these levels mean? →Frequently Asked Questions
Is legal cannabis more expensive than illegal?
In Canada, legal dried flower costs about 24% more and vapes about 19% more. However, legal capsules are cheaper, and several product types show no significant price difference.
Has Canadian legalization reduced the illegal market?
About 78% of purchases came from legal sources five years after legalization, suggesting substantial displacement of the illegal market.
Read More on RethinkTHC
Cite This Study
https://rethinkthc.com/research/RTHC-07531APA
Rundle, Samantha; Hong, Daniel Danh; Iraniparast, Maryam; Rynard, Vicki; Wadsworth, Elle; Pacula, Rosalie Liccardo; Kilmer, Beau; Hammond, David. (2025). Self-Reported Cannabis Prices and Expenditures From Legal and Illegal Sources Five Years After Legalisation of Non-Medical Cannabis in Canada.. Drug and alcohol review, 44(6), 1658-1665. https://doi.org/10.1111/dar.70009
MLA
Rundle, Samantha, et al. "Self-Reported Cannabis Prices and Expenditures From Legal and Illegal Sources Five Years After Legalisation of Non-Medical Cannabis in Canada.." Drug and alcohol review, 2025. https://doi.org/10.1111/dar.70009
RethinkTHC
RethinkTHC Research Database. "Self-Reported Cannabis Prices and Expenditures From Legal an..." RTHC-07531. Retrieved from https://rethinkthc.com/research/rundle-2025-selfreported-cannabis-prices-and
Access the Original Study
Study data sourced from PubMed, a service of the U.S. National Library of Medicine, National Institutes of Health.
This study breakdown was produced by the RethinkTHC research team. We analyze and report published research findings without making health recommendations. All interpretations are based solely on the published abstract and study data.