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420 with CNW — Study Shows Proximity Vital to Customers Buying Cannabis from Licensed Stores

Cannabis News Wire, Media Partners

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Marijuana retailers are well aware of the fact that customers prefer to purchase cannabis from nearby sources when possible. This intuition is supported by a recent study on Canada’s legalized marijuana market, which shows that consumers are much more likely to purchase products from legal marketplaces if they are close to licensed retailers.

The research, which is slated for publication in the “Journal of Studies on Drugs and Alcohol,” explores the relationship between Canadian marijuana users’ proximity to authorized retail establishments and their decision to buy cannabis products. Notably, respondents were more likely to choose legal establishments and less likely to choose regulated internet sites if they lived within three kilometers (about 1.9 miles) of the closest permitted cannabis retailer.

The study, which examines data from 15,312 Canadian marijuana users who took part in the International Marijuana Policy Study, spans the years 2019 to 2021. The study uses postal codes, which are typically more precise than U.S. ZIP codes, to locate their locations. The investigation explored various sources from which cannabis users acquired marijuana, such as regulated and illicit stores, websites, dealers, home production, and family and friends.

Compared to those who lived farther away, those who lived within three kilometers of a physically permitted marijuana business were less likely to buy from licensed online retailers or raise their own plants.

Interestingly, a comparison between Quebec and Alberta shows that consumers’ satisfaction declines when marijuana stores get closer to one another. The private cannabis retail industry in Alberta had a significant ratio of 18.7 outlets per 100,000 persons by 2021, compared to just 0.8 stores in Quebec’s government-owned retail monopoly. Albertans are more likely to purchase from regulated stores, although the difference was just 1.6 times greater.

The study also discovered a rise in the percentage of respondents obtaining their cannabis through legal channels and a drop in those obtaining it illegally, which is consistent with Canada’s goals for legalizing recreational marijuana.

It’s worth noting that the three-kilometer distance doesn’t necessarily correspond to the actual travel distance from a respondent’s postal code to the closest retail outlet. Instead, it reflects a straight line.

Canada had more than 3,740 licensed marijuana retail establishments as of April 2023 across all of its provinces and territories, which equates to 0.95 cannabis outlets per 10,000 persons. Alberta continues to be the state with the most marijuana stores per capita.

The report also showed $3.4 billion worth of legal recreational marijuana was sold in 2022, a 17.9% rise over 2021. In contrast, medical marijuana sales have decreased from their high as a result of the spike in recreational cannabis spending since it cannot be purchased through adult-use retail stores.

While companies that sell recreational or medical cannabis have to compete with unlicensed dealers, enterprises that focus on FDA-approved formulations made from marijuana compounds, such as IGC Pharma Inc. (NYSE American: IGC), don’t have such concerns because their products are accessible from pharmacies if one gets a prescription from their doctor.

NOTE TO INVESTORS: The latest news and updates relating to IGC Pharma Inc. (NYSE American: IGC) are available in the company’s newsroom at

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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