Canadians Spent $5.7 Billion on Black Market Weed Last Year, According to Government Study – News

Htm”>Cannabis Economic Account, a set of provisional estimates on the production, consumption, and sales of cannabis between 1961 and 2017 created by the government’s official statistics agency.

Statistics Canada collected data on production and consumption of cannabis via anonymous online surveys that asked for information on cannabis prices, quality, and use. “All levels of government will need information related to the production, distribution, and consumption of non-medical cannabis prior to and following legalization to support the development of policies and regulations,” a spokesperson for the agency said, 5 million Canadians aged 15 to 64 bought weed last year, spending an estimated total of $5.7 billion. Household spending on cannabis increased by an average of over 6% every year from 1961 to 2017, while domestic production increased by around 7% per year.

The study also found that the Baby Boomer generation has been buying more weed in recent years, representing 23% of all cannabis consumption last year, compared to 4% in 1975.

The Canadian report also found that the illegal cannabis industry even surpassed the country’s beer and tobacco industries. In 2014, the size of the cannabis production market was estimated at $3.4 billion, compared to $2.9 billion and $1 billion for the the country’s brewery and tobacco industries, respectively.

The alcohol industry has seen the writing on the wall and several firms have begun to invest in legal cannabis. Htm”>tracked the price of cannabis over time. The agency believes that the falling prices are due to an increased supply of product. Canadians weren’t the only ones enjoying cannabis grown in the Great White North. The report estimates that $1.2 billion of Canadian-grown weed, about 20% of 2017’s total cannabis production, was smuggled out of the country.

Once full legalization is rolled out this July, the Canadian government hopes to see the vast amount of money spent on black market weed end up in the legal retail industry instead. The fact that cannabis will be taxed and regulated will likely increase the overall price of weed which could give black market dealers a chance of surviving.