The scenario this headline suggests is unusual… very unusual indeed! Legal cannabis sales exceeding those of the black market in Canada?
Indeed, we all know that the trade in products classified as “narcotics” is the domain of drug traffickers, not legal retailers. This isn’t a new phenomenon. However, as always when it comes to cannabis and related products, this country is once again ahead of the curve. This proves that when the government and legislature get involved, the nation wins! With that said, let’s explore this topical issue together.
A look at the numbers:Indeed, the statistics showing that legal recreational cannabis sales in Canada exceed those of the black marketdate back two years after
legalization
. Specifically, to the third quarter of 2020. This data was published by the Central Bureau of Statistics. In this regard, the related expenses amount to CA$824 million (€534 million). Meanwhile, those of the black market, during the same period, are estimated at CA$754 million. Put this way, it may seem insignificant to some. But that’s precisely because another figure is missing.
In fact, in the third quarter of 2018, a period when illicit sales had no competition, drug traffickers were living the high life! Their sales were estimated at CA$1.3 billion. So, we’ve gone from CA$1.3 billion to CA$754 million. Do the math to see the difference. The decrease is approximately 40%. Clearly, legitimate businesses have certainly found a winning strategy. One that allows them to stay ahead of the shadowy merchants.
The Legal Market Tactic
Indeed, a question could be asked right away: What could possibly attract cannabis consumers to legal retailers? After all, they’ve become accustomed to other types of suppliers. In fact, it’s common to hear the saying, “Money talks.” Indeed, in the battle between legal and illegal businesses, money is key. Legal shops have simply lowered their prices. “It’s really important to emphasize that price reductions in the main dry flower categories have been essential for the transition of many of these consumers,” says George Smitherman, CEO of the Canadian Cannabis Council, a group representing cannabis producers.
Future Prospects
Indeed,
legal cannabis sales in Canada
