Canada was the first G-7 nation to legalize cannabis for adult use at a national level, and the second country in history overall, only behind Uruguay. Canada remains the only country on earth where anyone of legal age can purchase recreational cannabis products regardless of residency status.
Legal sales of adult-use cannabis products began in Canada in October 2018, and since that time, the nation’s industry has generated an enormous amount of tax revenue. The amount of revenue for the first six years following the launch of legal sales was included in a new report from the Ontario Cannabis Store (OCS) and Deloitte, which was published today.
“Over six years, the industry contributed $29.6 billion in government tax revenue for Canada and $5.3 billion in tax revenues for Ontarians.” stated the Ontario Cannabis Store on its website, announcing the publishing of the report. “Overall, the cannabis industry contributed $76.5 billion to Canada’s gross domestic product (GDP), and $23.1 billion to Ontario’s GDP, between legalization in 2018 and 2024.”
The report is titled “Six Years of Legalization: The Economic and Social Impact of Canada’s Cannabis Sector“. Another key finding from the report was that Canada’s legal cannabis industry supports “98,200 jobs annually across the country.”
“In Canada, total cannabis sales have increased significantly between 2018 and 2024, growing more than sixfold from an estimated $0.9 billion to $5.8 billion.” the report states.
The report also determined the following about Canada’s legal cannabis industry during its first 6 years following the adoption of national adult-use legalization:
- Total capital expenditures reached $42 billion nationwide
- 80% of consumers purchase from the legal market
- Cannabis consumption patterns have remained unchanged since legalization
- Canada’s industry is the second largest globally
- 5.6% of producer license holders are Indigenous
Canada’s cannabis industry has largely benefitted from a significant head start over many other countries, particularly the United States’ industry. Cannabis remains a Schedule I substance at the federal level in the United States, which hinders the country’s cannabis industry from exporting cannabis products to other countries.
A proposal to reschedule cannabis in the United States from Schedule I to Schedule III is being considered, although the chances of the public policy change happening any time soon is debatable. If/when the United States reforms its cannabis laws and regulations at the federal level, it will no doubt have an impact on Canada’s global standing. However, for the time being, Canada’s industry will continue to play the leading role in the international cannabis industry.