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Canada is currently the international leader when it comes to cannabis, from both a policy and consumer perspective.<\/p>\n
For many years Canada has been home to a robust cannabis community, especially in British Columbia.<\/p>\n
It\u2019s only one of two countries that have legalized cannabis for adult use along with Uruguay, and unlike Uruguay which limits legal adult-use sales to residents, Canada allows legal cannabis sales to anyone of legal age.<\/p>\n
Canada\u2019s rollout of legalization has been a bumpier ride compared to Uruguay, largely because of the sales model that Canada adopted.<\/p>\n
Unregulated sales in Canada still make up a sizable share of the overall marketplace, and there\u2019s one factor that is likely most responsible for that fact.<\/p>\n
It is no secret that many consumers largely base their purchasing decisions on price. For better or worse, many people are always looking for something cheaper.<\/p>\n
That is definitely the case with cannabis purchases in Canada, according to a new study that was recently released.<\/p>\n
A team of international researchers formed focus groups and asked consumers questions relating to cannabis purchases in Newfoundland and Labrador.<\/p>\n
\u201cParticipants discussed a variety of considerations when making purchase decisions categorized around five broad themes: 1) price, 2) quality, 3) packaging and warnings, 4) the source of the cannabis, and 5) social influences,\u201d the study\u2019s authors stated.<\/p>\n
\u201cThe price difference between licensed and un-licensed sources was commonly discussed as a factor that influenced purchase decisions. Product quality characteristics (e.g. size, color, moisture content) and social influences were also considered in purchase decisions. <\/p>\n
Participants were generally indifferent to packaging and warning labels but expressed concern about the excessive packaging required for regulated products,\u201d the authors concluded.<\/p>\n
The results of the previously cited study are not exactly shocking. However, there is some additional context that is necessary to consider.<\/p>\n
Just because cannabis costs more through a delivery service or dispensary does not necessarily mean that the consumer will automatically go with whatever product is cheaper.<\/p>\n
How much cheaper is a significant factor in the purchasing decision. It\u2019s a safe bet that many people will pay a little more for regulated cannabis, but there\u2019s a limit.<\/p>\n
Purchasing regulated cannabis comes with a lot of benefits, not the least of which is lab testing to ensure that the cannabis is free from various contaminants.<\/p>\n
However, for every 10% that the price goes up for regulated cannabis compared to unregulated cannabis presumably a significant portion of consumers are lost to the unregulated market.<\/p>\n