How Ontario's legal cannabis market is changing five years after legalization

An update on cannabis products, cannabinoid content, plant type, and prices five years after legalization in Ontario, Canada.

Journal of cannabis research • • Moderately Relevant
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AI Summary

Five years after recreational cannabis legalization in Canada, Ontario's legal market has undergone significant changes in product diversity, pricing, and potency. Researchers analyzed 1,727 products available through the Ontario Cannabis Store in early 2024, finding that the market is now dominated by inhaled products (73% of all products), with dried flower, pre-rolls, vaping products, and concentrates being the most common options. Notably, over 96% of all inhaled products contain THC potency of 20% or greater, making them classified as "very strong products." The market continues to consolidate around specific product types, with ingestible products like edibles and gummies gaining market share while total product variety has actually declined since 2022.

Price trends show encouraging developments for consumers, with flower products dropping to $7.91 per gram and significant price reductions across vaping products and soft chews compared to 2022. Conversely, THC potency levels have generally increased across the market. The study reveals distinct plant-type preferences depending on administration method: dried flower and smoking/vaping products tend to be indica-dominant, while edible products are predominantly sativa-dominant. All edible products remain compliant with Canada's 10 mg THC per container limit, demonstrating regulatory enforcement in this category.

These evolving market dynamics have important implications for consumer behavior and public health policy. The combination of lower prices and higher average potencies may influence purchasing decisions, particularly among vulnerable populations. The researchers emphasize that continuous market monitoring is essential to evaluate the long-term consequences of legalization and inform future regulatory amendments, including potential price controls and potency limits that could address concerns about the escalating strength of cannabis products available to consumers.

📄 Original Abstract

Changing trends in legal recreational cannabis markets necessitates the continuous monitoring of important market metrics such as price, potency, type, and availability of cannabis products which may influence consumer purchasing behavior. After initial legalization of recreational cannabis use in Canada in 2018 and expansion of the legal market in 2019, an increase in product types and decrease in prices were observed. The purpose of the present study was to provide an update on products on offer to cannabis consumers in Ontario, the largest Cannabis market in Canada, five years after initial federal legalization of non-medical cannabis use. Data were obtained from the Ontario Cannabis Store (OCS) Website, the sole wholesaler and online market in Ontario between January and April 2024. Information on product type, prices, delta-9-tetrahydrocannabinol (THC) and cannabidiol (CBD) potency and plant type was extracted and products were grouped by OCS categories and sub-categories, and by route of administration (Inhaled, ingestible, topical and others). A total of 1727 products were mapped, of which the majority available were inhaled products, sub-divided into smoking, vaping or concentrates (n = 1271). The majority of inhaled products were predominantly indica-dominant while most ingestible products (e.g. edibles) were mainly sativa-dominant. Most inhaled products were "very strong products", i.e., THC potency of 20% or greater (greater than 97%, 96% and 99% of all dried flower, vaping and concentrate products, respectively). All edibles were within the legally acceptable limit of 10 mg of THC per container. Average prices were lowest for dried flower products ($7.91/g) among inhaled products (pre-rolls: $9.65/g, 510 thread cartridges: $37.7/g, infused flower: $18.66/g). Compared to our previous study in 2022, which utilized data from the same website and similar extraction methods, the total number of products on the legal market declined, while the number of edible products (particularly gummies) and disposable vapes, increased. Prices of all flower products (p < 0.001), most abundant vapes (disposable vapes and thread cartridges: p < 0.001) and soft chews (p < 0.027) decreased in 2024 compared to 2022 at the 5% significance level. Conversely, THC potencies of products available generally increased (p < 0.05). Given the trend of decreasing price and changes in products available, continuous monitoring of the cannabis market is vital. This is necessary to assess the consequences of legalization and inform legal amendments such as price control and potency limits that may curb potential negative consequences possible with the current market trend.

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