Instead there seems to be two effective strategies, both used for alcohol and tobacco, which is taxation and state monopolies. Taking Sweden as an example, the taxation is made per liter of sold alcohol. The stronger (and assuming bigger effect on society), the more society demand in compensation. Depending on the drink and original price, the tax can actually become several times higher.
Here the money is ear marked for things such as reducing traffic accidents and domestic violence. If the cost are increased you simply increase the tax. Police has a strong incentive to catch this form of tax evasion as part of the money goes to them, and social norms are rather accepting since only poor people are disproportional effected by the price increase.
Similar for state monopoly, the state has a direct incentive to punish would-be completion. From a social perspective, my guess is that people are rather used to monopolies. Each year there is more and more merges leaving fewer companies that actually compete, and naturally prices goes up. Regardless if it is an icecream, a fridge, gass, a phone, a moive, or a news paper, you can best that most products is made by just a handful global companies, or a single one.
And as for the effect, there seems to be a fair correlation to heavy taxation and decrease use. The tax has never been as high in Sweden as now and the use has never been so low.
> Due to its low cost and simple production process, kilju is mostly drunk by low-income people or heavy drinkers, such as students and alcoholics.
Students generally rush the process and the quality and taste is terrible.
Car ownership among students is down and on campus there is fewer reason to drive.
The culture is generally focused on hard spirits and beer, not wine.
I don't think that an unfettered free market is the right solution though since addiction robs people of the kind of agency we typically assume people have in free market exchanges. That, plus an awareness of social externalities.
When we criminalized alcohol, the negative externalities got worse. Gangsters murdered each other in the street for control over distribution. The profits from bootlegging were funnelled into other organised crime. People were blinded and killed by adulterated booze. Billions of dollars were lost in tax revenues. The overall consumption rate towards the end of prohibition was only about 30% lower than before.
The evidence is clear - criminalisation kills. Unless you're in a totalitarian regime with closed borders, you can't stop people from taking drugs. What you can do is effectively regulate the drug market, provide proper care and support services and minimise the harms to drug users.