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

The Westbank First Nation to be a fixture of Westside Daze

This Canada Day long weekend mark your calendars

Updated: Kelowna cops investigate armed robbery at city centre business

Robbery sparks late afternoon manhunt by armed police officers with guns drawn

Kelowna mayor pays emotional tribute to late senior city manager

Colin Basran chokes up remembering city corporate and protective services director Rob Mayne Monday

Country Music hopes to raise funds for Grand Forks families

The event will take place at OK Corral in Kelowna

NDP executive steps down in North Okanagan Shuswap

in-house ‘spending scandal’ blamed for Saturday’s resignation decision

Updated: Kelowna cops investigate armed robbery at city centre business

Robbery sparks late afternoon manhunt by armed police officers with guns drawn

UPDATED: Oliver wildfire extinguished, B.C. Wildfire mopping up

6-ha. brush fire contained before it could spread farther

Late goal gives England 2-1 win over Tunisia

At the last World Cup in 2014, England couldn’t even win a game

Canadian military police officer pleads not guilty to sex assault

Sgt. Kevin MacIntyre, 48, entered his plea today at a court martial proceeding in Halifax

Vernon cold case murder suspect bail hearing Tuesday

Paramjit Singh Bogarh will appear in Vernon Law Courts at 10 a.m. June 19

Elvis lives again in Penticton

Elvis Festival back this weekend for 17th year

Tigers looking to lock up title

Face Flames tonight in Penticton

Cheers erupt as Federal Court judge approves historic gay purge settlement

Gay military veterans said they were interrogated, harassed and spied on because of their sexuality

Remains of two people found on Vancouver Island

Officials have not said whether or not the remains belong to two missing men, last seen in Ucluelet in mid-May

Most Read