- Cannabis sales have increased by about 20% as the legal sector competes with the illicit trade.
- According to Nova Scotia’s official cannabis store, falling cannabis prices dent the illicit market.
“The whole point of legalization was to put a dent in the illegal market,” said Bev Ware, a Nova Scotia Liquor Corporation spokesperson. According to Ware, the average price of a single gram of marijuana in Nova Scotia is now $6.50, down nearly 40 %since legalization in 2018. But it’s a steady supply of one-ounce cannabis bundles, some as little as $110, that “helps compete with the illicit market,” according to Ware.
According to financial data from the NSLC’s second quarter, cannabis sales increased by nearly 20% to $26.6 million, while average cannabis prices decreased by 13%.
Purchasing more spending less
This indicates that while customers in Nova Scotia purchased more cannabis every trip to the NSLC, they paid around 12% less. “Suppliers have been lowering their pricing in the last couple of price reviews, and they’re also bringing us additional value-priced products to give to our clients,” Ware added.
While raw cannabis flower accounts for around 60% of NSLC cannabis sales, more than half of that is sold in one-ounce containers, close to the federal law’s maximum size limit.
The cost of illegal cannabis is also decreasing. According to David Brown, a former Health Canada cannabis policy analyst who now provides regulatory assistance to Canadian cannabis companies, falling prices are a worldwide trend.
Brown stated that Nova Scotia’s prices are “on par, maybe a bit below average.” “Probably a little lower than Ontario, which is the main market, and a bit more than what I’m seeing in Quebec, which has some of the lowest pricing in Canada,” says the expert.
Statistics Canada’s most recent annual cannabis survey indicated a significant shift in consumer behavior away from the criminal market and legal channels. The number of purchases from legal stores increased by 71% between 2019 and 2020.
Source: CBC News
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