Annualized household spending on cannabis was split between $4.7 billion in the black market and $1.2 billion in the legal market for the fourth quarter of 2018. All told, cannabis purchases now account for 0.5 per cent of all household spending.(Bloomberg)
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Annualized household spending on cannabis was split between $4.7 billion in the black market and $1.2 billion in the legal market for the fourth quarter of 2018. All told, cannabis purchases now account for 0.5 per cent of all household spending.(Bloomberg)
Talking point: The high market share for the black market is being driven by two factors: cannabis was only legalized partway through the fourth quarter, and its price is relatively high. According to anonymous self-reported data collected by Statistics Canada, the average cost for legal cannabis was $9.70 per gram, compared to $6.51 for illegal cannabis. That 32.9 per cent drive difference will be a consistent headache for Canada’s legal cannabis industry. Canopy Growth, which controls 30 per cent of the retail market, is trying to expand by focusing on newer products like vape pens and liquids.
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