Two-thirds of current pot users will switch to legal retailers, survey suggests

Findings were drawn from an online survey of 1,500 Canadians

Canadians who currently use cannabis expect to buy nearly two-thirds of their pot from legal retailers once recreational marijuana becomes legal in Canada, a new survey suggests.

Moreover, respondents to the survey say they expect to buy cannabis more often and are prepared to pay more for the legal product, generating up to $4.34 billion in total sales next year.

The findings were drawn from an online survey of 1,500 Canadians, conducted by Asking Canadians from March 6-20.

It was commissioned by accounting giant Deloitte, which provides audit, consulting, financial advisory, risk management and tax services for its clients.

“What is certain is that legalization will open the doors to a dynamic and sophisticated industry that will create new jobs, new opportunities for businesses and new revenue for government,” Deloitte concludes in a report on the survey.

“Executed well, legalization will also help shift a considerable proportion of cannabis consumption to legal channels in the years to come.”

The Trudeau government intends to have retail sales of cannabis up and running by late summer, assuming the legalization bill is passed by the Senate in a vote scheduled for June 7.

Overall, the survey suggests 63 per cent of respondents expect to move from illegal suppliers to legal retailers. That includes 47 per cent of frequent users and 69 per cent of periodic users.

READ MORE: 39% of pot users say they drive after smoking, says Health Canada survey

VIDEO: Smokers talk pot rules at annual 4-20 event

“Legalization alone won’t persuade most current cannabis consumers to completely abandon their existing suppliers,” the report says. “But our research suggests the right mix of quality, price and safety could just do the trick.”

Among the things that would persuade current users to switch to legal retailers, 55 per cent of respondents cited better quality products, 54 per cent cited a range of prices, 47 per cent cited products with a range of potency and 41 per cent cited products certified to be safe.

Based on the survey, Deloitte says the current average price for illegal cannabis is $8.24 per gram. Respondents said they’re willing to pay a bit more — an average of $8.98 per gram — for legal weed.

Current consumers said the price would have to rise to almost $14 per gram before they’d stop buying while respondents who said they’re likely to become consumers once cannabis is legalized said they’d stop buying at about $11 per gram.

“Being responsive to consumers’ price sensitivities is essential if producers, manufacturers and retailers are to be successful — and if governments are going to persuade a rising number of Canadians to purchase through legal retailers,” the report concludes.

According to the survey, frequent users expect to make 22 per cent more purchases of cannabis under the legalized regime, although they expect to spend about the same each month as they do now — just less than $100.

However, respondents who are currently infrequent users expect their purchases to rise by 121 per cent, with their total spending increasing by almost 70 per cent to roughly $28 every three months.

While Canadians may purchase cannabis more often, the survey suggests they still won’t necessarily indulge all that often: 41 per cent of cannabis consumers said they’ll use it less than once a month. Just 20 per cent said they’ll use it every day — unchanged from current usage.

Joan Bryden , The Canadian Press


@ashwadhwani
ashley.wadhwani@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

Driver convicted in death of Const. Sarah Beckett granted partial parole

Kenneth Jacob Fenton will be able to attend an alcohol abuse treatment, nearly three years after fatal crash in Langford

Experts discuss sustainability and tourism in Victoria

IMPACT Sustainability Travel and Tourism Conference runs Jan. 21-23

Peninsula Chamber gears up for annual Tour of Industry

Event showcases local businesses, connects entrepreneurs during tour, luncheon

City of Victoria earmarks $90,000 for mayoral assistant

The new Head of Strategy and Operations would help with municipal duties

New childcare in Langford looking for toddlers and teachers

Willowbrae Academy puts an emphasis on healthy living habits

WATCH: Celebration of Life hosted for 29 Victoria trees set to be removed

Community Trees Matter Network hosting “goodbye and thank you” for trees on Fort Street

Suspect allegedly armed with handgun robs Island gas station

Incident occurred Sunday night in Nanaimo

POLL: Should people have to license their cats?

The Victoria Natural History Society has sent letters to 13 municipalities in… Continue reading

Greater Victoria Crime Stoppers wanted list for the week of Jan. 15

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

B.C. man charged in 2014 snake venom death of toddler

Henry Thomas was taking care of the North Vancouver girl the day before she died

MARS seeing influx of sick, injured eagles from north part of Vancouver Island

Factors for increase in eagle cases can be anything from lead poisoning to vehicle strikes

Doug Ford says the Liberals’ carbon tax will plunge Canada into recession

The Ontario premier said there are already warning signs of difficult economic times ahead

Kamala Harris opens U.S. presidential bid in challenge to Trump

The 54-year old portrayed herself as a fighter for justice, decency and equality in a video distributed by her campaign

B.C.’s largest public-sector union wants inquiry into money laundering, drugs

Union officials say Premier John Horgan and Attorney General David Eby have not ruled out the possibility of a public inquiry

Most Read