Price of pot increases after legalization: Stats Can

  • Price of pot increases after legalization: Stats Can

Price of pot increases after legalization: Stats Can

A legal gram of cannabis in Canada costs almost 50 per cent more than illicit pot, according to a new analysis of price quotes compiled by Statistics Canada.

The number of respondents who reported first-time use was small - only 23 out of a total of 385 responses Statistics Canada deemed to be believable - but the mention shows those findings were significant enough to be included in the agency's first crowdsourcing report since legalization.

Statistics Canada says that the average price of a legal gram of recreational pot a year ago was $9.70, almost 50 per cent higher than the illicit market price of $6.51.

It added that roughly half of the respondents told the agency they bought recreational pot from a legal supplier.

Still, StatCan said caution should be used when interpreting the crowdsourced data.

GMP Securities analyst Martin Landry wrote in a report Wednesday that dried flower retail prices usually average about $8 to $10 per gram while cannabis oils and capsules retail for about a $15-per-gram equivalent. The price of a gram of cannabis in Canada is expected to fall in the coming years, mirroring similar moves in US states where pot is legal, as more supply comes online and licensed producers compete with the black market.

A shortage of wholesale cannabis and problems with production across the country could be related to the higher price for legal product, as well as delays by several provinces, particularly Ontario, in approving and licensing private retail outlets.

There also appears to be a difference in purchase patterns between genders.

Males were also found to purchase in larger quantities from both legal and illegal sources but males and females combined bought more pot from illegal sources than legal ones. That was 49 per cent more than the price paid for dried cannabis purchased from illegal suppliers of $6.51.

As well, out of the 300 respondents that answered a survey question about first-time buyers, 23 indicated that this was their first-ever pot purchase, StatCan said.