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

VIDEO: This is what buying legal pot in B.C. looks like

Take a look inside B.C.’s first and only legal pot shop located in Kamloops

10 things still illegal in the new age of recreational cannabis

Pot is legal – but there are still a lot of rules, and breaking some could leave you in jail

Cathy McLeod ready to run in Election 2019

“I have the passion, energy and support from my family to continue working hard for our region.”

‘Police are ready’ for legal pot, say Canadian chiefs

But Canadians won’t see major policing changes as pot becomes legal

Shuswap plane missing since 1987 discovered near Clearwater

A family finally has closure after a plane missing since 1987 was discovered in the Clearwater B.C.

Tommy Chong says cannabis legalization makes him proud to be a Canadian

Legendary marijuana advocate and comedian celebrates cultural milestone at Kelowna event

MLA to become Nanaimo’s next mayor, could weaken NDP’s grasp on power

Leonard Krog’s win will trigger a byelection when he gives up his provincial seat

Horvat nets OT winner as Canucks beat Bruins 2-1

Young Vancouver star had spirited scrap earlier in contest

Team Canada gold medal winners for first time in world curling championship

Team Canada earned gold in Kelowna at the 2018 Winn Rentals World Mixed Curling Championship

B.C. passenger caught smoking weed in a car issued $230 fine

Saanich police did a field sobriety test on the driver and deemed it safe for him to drive

Payette invites critics to ‘come and spend a few days’ with her

Governor General Julie Payette made her first official to B.C. back in March

More pot stores expected in B.C. in coming ‘weeks and months’: attorney general

Attorney General David Eby and Public Safety Minister Mike Farnworth visited the new BC Cannabis Store in the province’s Interior

Telus launches charitable foundation to help vulnerable youth

The Telus Friendly Future Foundation complements other social initiatives by the company, including Mobility for Good

Police say suspicious death of B.C. artist ruled a homicide

Patrick Zube Aylward’s body was found in a residence on a rural road outside of Seton Portage, west of Lillooet, B.C.

Most Read