For the first time in Canada, legal cannabis figures exceed illegal ones
In the third quarter of 2020, the legal value of cannabis sales in Canada crossed the value of black market cannabis sales, according to data released by the Central Bureau of Statistics
According to the Canadian Bureau of Statistics, for the first time since the approval of cannabis laws and the opening of legal stores in 2018, sales of recreational cannabis among Canadian adults have exceeded the volume of illegal cannabis trade in Q2020 XNUMX estimates.
For the authorities, this is of course a trend that is a success, but the experts point out that there are several other steps to be taken, such as updating the level of the tax or relaxing the laws on advertising in the public space, in order to put the legal industry on stable ground.
The drop in legal cannabis prices, along with a wider, more consistent and diverse product line allowing for therapeutic continuity, and of course an increase in the number of stores, have all contributed to the success of the legal market.
According to the data, sales of cannabis products in the leisure market (excluding "medical" cannabis) in the third quarter of 2020 amounted to C $ 824 million (US $ 644 million), compared to the value of illegal sales estimated, of course, to be around $ 754 million at the time.
Georges Smitherman, Chairman of the Canadian Cannabis Council made up of the largest cannabis companies, said in an interview with MjBizdaily that the numbers are encouraging and there is more room for growth. This illustrates the success of one of the objectives of market regulation, namely, to transfer illegal cannabis sales to a legal and supervised framework. "https://mjbizdaily.com/legal-recreational-cannabis-sales-in-canada-outstrip-illicit-spending-for-first-time/
In the third quarter of 2018, the last full quarter without a legal market, illegal sales amounted to around C $ 1,3 billion and fell to around $ 770 million, a 40% drop. Data shows that the consumption of cannabis in adolescents saw a sharp drop of almost 50% in consumption.
Smitherman added that steady market growth has been achieved in an environment where access to legitimate stores still needs to be improved and not all consumers are in areas where there are always stores available.
He attributed some of the success of the legal industry to the recent drop in prices, which is approaching black market prices which are of course untaxed, but warned that “the drop in prices has been fully absorbed by the producers, and they are the ones absorbing the lower profits ”.
Smitherman further noted that the government should reconsider how to properly calculate the federal excise tax in the market, in order to further reduce the purchase of cannabis on the black market and increase the purchase of legal cannabis, of course. lowering prices and opening more stores.