Cannabis Cuts Deep into Alcohol Sales: Each Dollar Spent on Cannabis Trims Alcohol Sales by 75 Cents

A recent study conducted by Canadian researchers has established a clear connection between medical marijuana sales and a decline in alcohol sales. Published in the Medical Journal Health Policy, the study focuses on the impact of medical marijuana legalization in Canada, suggesting that customers may be substituting cannabis for alcohol. Led by Professor Michael J. Armstrong from Brock University, the research analyzed the sales of legal cannabis in comparison to wine, beer, and other alcoholic beverages between 2015 and 2018.

The study reveals a significant correlation, indicating that for every dollar spent on legal marijuana, alcohol sales experienced a decline ranging from 74 to 84 Canadian cents. Professor Armstrong emphasizes that while the findings do not establish a cause-and-effect relationship, they strongly suggest that cannabis is replacing alcohol consumption. Furthermore, the research indicates that alcohol sales from 2017 to 2018 were approximately 1.8% lower than projected if Canada had not implemented medical cannabis regulations.

Prof. Armstrong notes the robustness of the negative association across various modeling approaches employed in the study. He highlights that the evidence suggests cannabis acts as a substitute rather than a complement to alcohol consumption in Canada. This finding raises the possibility that similar substitution effects may occur in other countries that legalize cannabis, although further research is necessary to confirm this.

From a public health perspective, the study's results imply that the decrease in alcohol-related health impacts may partially offset the potential increase in cannabis-related health impacts resulting from legalization. Additionally, medical cannabis is believed to improve the health of certain patients by treating symptoms that were previously masked by alcohol.

Regarding the political implications, the study suggests that the financial appeal of cannabis legalization may be slightly diminished, while the concerns related to public health may be somewhat alleviated. This insight could potentially influence legislative decisions in other countries considering the legalization of cannabis.

Overall, the study sheds light on the relationship between medical marijuana and alcohol sales, offering valuable insights into consumer behavior and the potential impact of cannabis legalization on public health and policy considerations.