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.
Anyone following cannabis legalization outcomes and market dynamics.
78% of purchases from legal sources
What the researchers 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.
Why it 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 numbers in context
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 the study worked
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.
What this study cannot tell us
Self-reported prices and sources. Cross-sectional. No quality comparison between markets. Quantity discounts complicate comparisons.
How to read the evidence
Moderate: large national survey with product-level data, but self-reported prices.
When this study was published
Published in 2025, with data from 2022-2023.
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.
Questions still open
- 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?
Common questions
Is legal cannabis more expensive than illegal?
Has Canadian legalization reduced the illegal market?
Read the original research
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
Citation
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