Legal vs Illegal Cannabis Pricing

Marijuana

CBJ — According to the latest figures from Statistics Canada it appears the illegal cannabis market is fighting back in an attempt to keep customers from going through legal channels as the price for illegal marijuana continues to drop, creating an even wider pricing gap between the two.

According to Statistics Canada the price of legal cannabis increased to $10.30 per gram through the end of 2019, up from an average of $9.70 per gram the year before.

Meanwhile, the average price of illegal cannabis fell to $5.73 per gram in the fourth quarter from $6.44 per gram a year earlier.

The data comes as the industry continues to try and get people to stop purchasing illegal cannabis. However, many legal entities have had problems keeping supply at the necessary levels to service customers, and that has also led to people then going back to the underground market. Also, the bottom line is that many people are quite simply going to choose the cheaper option — even if it’s not legal.

Quebec has the lowest legal cannabis prices in Canada at $7.88 per gram and Ontario has the highest illegal cannabis price with an average of $6.21 per gram.

@CanBizJournal

 

 

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