As legalization approaches cannabis prices are dropping across Canada. Price per gram fell 7.7% in 2017 compared to 2016. This drop is the largest reported in the last ten years according to Statistics Canada.
If prices continue to drop the potential revenue for cannabis companies will also decline. Current average price for a gram of cannabis is C$7.43, which is a dollar drop from C$8.43 in 2015 when Trudeau first campaigned for legal use.
These statistics are being crowdsourced by Statistics Canada online through anonymous surveying. This is to gain a more accurate perspective on the situation by allowing citizens to report even black market sales. Information around the price, quality, and quantity of cannabis sales are being monitored and tracked throughout the country.
Overall spending on cannabis has increased 6% a year on average since 1961. Soon recreational weed will be included in this estimate, which is expected to increase the number significantly.
Over the years Canada has swung from importing around 40% of its cannabis to importing about 8%. The export market on the other hand is growing rapidly and is estimated by Statistics Canada to be worth over C$1.2 billion.
The drop in prices is fantastic news for the purchasers of cannabis, and these changes will continue to make the market more competitive for the licensed producers.
Shasta Nelson is a California Native and a cannabis connoisseur. She's been involved in the industry at every level since she was a teenager. Currently she provides content for Roottie, DOPE Magazine, and Terpenes and Testing. She's also a creative writer, with a graphic novel underway.