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Canadians increasingly buying cannabis from the legal market

Jan 21, 2022 | Media Partners, The GrowthOp

This post is presented by our media partner The Growth Op
View the original article here.

The study cites decreasing legal prices and increased retail offerings as driving the shift in purchasing habits.

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The proportion of Canadians purchasing cannabis from legal sources jumped by more than 12 per cent in 2020, with the legal market now responsible for nearly 60 per cent of cannabis sales according to a new study.

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They found that from 2019 to 2020, the proportion of consumers last purchasing dried flower from legal sources increased from 45.7 per cent to 58.1 per cent. The average per gram price of legal cannabis also fell in 2020 to $11.16, down from $12.63 in 2019. Despite that dip, legal prices are still higher than the illicit market. According to the study, the average cost per gram of cannabis on the illicit market was $9.04 in 2019 and $9.41 in 2020.

Researchers concluded that price and retail access must continue to encourage the transition to the legal market in Canada.

The findings are consistent with the latest quarterly report from the Ontario Cannabis Stores (OCS).

Released in December, the OCS report found that nearly 55 per cent of all cannabis sales in the quarter running from July to Sept. took place in legal channels. That same report found that, on average, Ontarians are now only 4.6 kilometres away from their nearest cannabis shop.

A 2021 study published in the journal Health Reports also found that Canadians are increasingly purchasing cannabis from the legal market.

The study spanned about five years, three years leading up to legalization and two years post-legalization. Per NORML , it found that nearly 70 per cent of respondents purchased their cannabis from legal sources in 2020, a significant increase from 2019 when just 47 per cent relied on legal sources.

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