Statistics Canada just released some pretty interesting data. In light of retail cannabis legalization, they were looking to gather data on cannabis pricing. Particularly, they were looking at prices of products per gram from a licensed producer versus from the black market. The results may or may not surprise you.
The results of the study concluded that black market prices were nearly 50% lower than that of legal recreational cannabis. This conclusion was based upon 385 price quotes in which they received utilizing Stats Cannabis crowdsourcing application. The data was collected between opening day of legalization which was October 17th and December 31st of 2018.
The Prices We’ve All Been Waiting For
According to this data, the average price for a gram of cannabis on the legal market was $9.70.A gram of cannabis on the illicit market, however, was nearly 50% lower coming in at only $6.51 a gram.
Of the respondents that took part in this survey nearly half of them had bought recreational cannabis from a legal supplier. The data also concludes that cannabis sales from illegal suppliers were nearly double that of non-medical cannabis providers on the legal market.
So Why the Black Market When There’s a Legal Market?
Could it be that people are just not ready to give their money to the man? Or could they be still flocking to the black market due to prices? Many believe it has a lot to do with something entirely different. Legal cannabis providers have seen several products recalls and shortages. They also face restrictions when it comes to the genetics they can offer. For those still cultivating and selling cannabis outside of the law, there are no limits to what they can offer. Therefore many patients and consumers alike prefer the variety of different strains that they can obtain.
For some though it is likely a matter of what they can afford. At nearly 50% of the cost who could blame them. While there is much overhead associated with legal cannabis businesses, there’s no reason in which you cannot match or beat the prices offered by the black market. This is especially true considering the massive cultivation centers throughout the nation. It will be interesting to see what these numbers look like a year from now as legal suppliers scramble to meet the demands for cannabis in the country.