A customer walks into a cannabis products store in the city of St. John's, in 2019CHRIS WATTIE / REUTERS
The economic hardships stemming from covid-19 have not made a dent in Canadian legal cannabis.
In fact, their sales have increased.
The figures show an increase in consumption during the months of the health crisis, although an essential factor to explain this improvement in the account books is, according to experts, that customers are increasingly leaving the black market.
Liberals under Justin Trudeau legalized recreational marijuana in Canada in October 2018, making it the second country to implement the measure after Uruguay.
Months ago, a survey by the Léger firm found that 27% of Canadian cannabis users were using it more during the pandemic.
In September, a similar exercise by Mental Health Research Canada placed it at 29%.
“Before covid-19 I bought seven grams of dried flowers a month;
now, on average, a little more than ten, "says Kate, a thirty-something who works in an accounting firm, outside the branch of the Québec Cannabis Society on Acadie Boulevard in Montreal.
"I work from home and see my friends only online," he adds.
Serge Brochu, professor at the University of Montreal and scientific director of the University Institute on Dependencies, comments on the increase in consumption: “Anxiety and stress have increased.
These are times of uncertainty and concern.
The change in routines also explains it.
Many activities, like going to the movies or the gym, are not allowed ”.
Olga Chernoloz, scientific director of the Wake Network, told
The Toronto Star
newspaper
that the tension due to uncertainty in these months is very difficult to bear, which is why some people "seek through cannabis that things are not so bleak."
However, Chernoloz considered that it cannot be a long-term solution.
Omar Youssouf, a retail analyst at Statistics Canada - the federal agency that collects official data - wrote in August that while it is difficult to accurately attribute the increase to the pandemic, the fact that people weigh more time at home and spending more on food and drink may suggest the same is happening with weed.
Almost all Canadian provinces have listed legal cannabis stores on the list of essential services during lockdowns, on the same level as supermarkets, pharmacies and liquor stores.
These cannabis establishments - despite reductions in opening hours - continue their activities in provinces such as British Columbia, New Brunswick, Quebec, Alberta and Manitoba.
The most notorious exception has been Ontario, although online legal operations have continued during periods of greatest lockdown.
Brochu points out regarding this provision: “The Governments surely thought of a shortage.
If it was decided to close these stores, people would buy a lot of product before they closed their doors.
Studies indicate that people tend to consume more by accumulating it.
It is the same with alcohol.
Later, with the stores closed, the only option was to go to the black market.
There are also taxes ”.
The regulatory framework stipulates that 25% of these fees go to the federal government and 75% remain in the provinces.
Brochu continues: “You have to consider that the legal market has gained ground, so taking a step back was not a good option.
Another risk is that people would turn to other products, such as anxiolytics.
If liquor stores remained open, doing the same with cannabis stores was a wise decision.
The figures clearly show that alcohol carries more dangers ”.
In October 2019, one year after the legalization, Scotiabank calculated that the black market still controlled 71% of the total;
the Québec Cannabis Society placed it at 80%.
Statistics Canada published last December that, according to polls collected between April and June, 55% of those surveyed said that their usual source of cannabis comes from the law.
Some experts argue that this figure may be exaggerated, although they confirm that authorized stores and legal online sales have gained ground.
The numbers indicate that the legal market is moving forward, especially during the times of the coronavirus.
According to Statistics Canada, legal sales in 2019 were for 1,200 million Canadian dollars;
in 2020 they represented 2.6 billion, an increase of 108%.
In British Columbia, the increase was 193%;
in Manitoba, 107%.
The Québec Cannabis Society announced sales of $ 120 million in the second quarter of 2020;
56.6 million in the same period of the previous year.
This progression –according to the specialized press– is explained by a greater number of authorized stores, fewer supply problems, an increase in quality and more competitive prices (for example, the price of legal flowers fell by 30% on average in relation to past year).
Likewise, in December 2019, the legal sale of edibles, resins and other cannabis derivatives began.
Brochu says these points have been aligned with the rise in consumption during the pandemic to strongly boost the legal market.
“It must also be taken into account that, in this crisis, some people prefer to go to an establishment that complies with sanitary measures instead of meeting with a street vendor.
In addition, there is a more pronounced desire to buy legally.
The products go through quality controls and, in the case of Quebec [where the stores are exclusively state-owned], all profits go to prevention and research programs, ”he says.
Kate says in Montreal that visiting the licensed facility represents one of her few walks during these times of pandemic.
"Fortunately, marijuana is legal in Canada, so consumers must also do our part, to the extent possible," he adds.