Legal cannabis prices in Canada are closing the gap with the black market

Legal cannabis prices in Canada

According to a recent survey, the price difference between legal and illegal cannabis in Canada has narrowed significantly since legalization in 2018. The survey, conducted by the University of Waterloo and the University of Guelph, scanned products from 624 legal private recreational cannabis stores and 57 illicit online stores in May and June 2023.

Legal cannabis prices have dropped while illegal prices have risen

The survey found that the average price per gram of dried flower on the legal market was $9, while the average price on the black market was $6. However, the gap was smaller for larger quantities. The average price for 7 grams was $5.84 and $5.35, respectively, while 28 grams was $4.32 and $4.24.

The survey also compared the prices of other cannabis products, such as edibles, concentrates, oils, and topicals. The results showed that legal edibles were cheaper than illegal ones, while legal concentrates and oils were more expensive. Legal topicals had a similar price to illegal ones.

The survey authors noted that the legal cannabis prices have dropped by 25% since legalization, while the illegal prices have risen by 10%. They attributed this trend to several factors, such as increased competition, economies of scale, product innovation, and regulatory changes.

Legal cannabis consumers value quality, safety, and convenience

The survey also explored the reasons why consumers choose to buy cannabis from legal or illegal sources. The most common reason for buying legal cannabis was quality (44%), followed by safety (36%), and convenience (34%). The most common reason for buying illegal cannabis was price (67%), followed by habit (25%), and availability (24%).

Legal cannabis prices in Canada

The survey authors suggested that legal cannabis consumers value the quality and safety of the products, as well as the convenience of online ordering and delivery. They also noted that legal cannabis consumers tend to be older, more educated, and more likely to use cannabis for medical purposes than illegal cannabis consumers.

Legal cannabis market share is growing steadily

The survey also estimated the market share of legal and illegal cannabis in Canada, based on the reported consumption and expenditure of the respondents. The results showed that the legal cannabis market share was 41% in 2023, up from 37% in 2022 and 25% in 2019.

The survey authors concluded that the legal cannabis market in Canada is growing steadily, as more consumers switch from illegal to legal sources. They also predicted that the legal cannabis market share will continue to increase, as the price gap narrows and the quality, safety, and convenience of legal products improve.

By Benjamin Parker

Benjamin Parker is a seasoned senior content writer specializing in the CBD niche at CBD Strains Only. With a wealth of experience and expertise in the field, Benjamin is dedicated to providing readers with comprehensive and insightful content on all things CBD-related. His in-depth knowledge and passion for the benefits of CBD shine through in his articles, offering readers a deeper understanding of the industry and its potential for promoting health and wellness.

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