How is the black market for cannabis in Canada after nearly eight months?

Published Jun 23, 2019 10:36 a.m. ET
iStock / Kazyaka

Recreational cannabis use and distribution became legal eight months ago. Marijuana legalization in Canada promoted the country as, becoming the first wealthy country to adopt this law. The black market is not hurting from this, quite to the contrary.

It is estimated that about 38% of acknowledged pot users are not using the government as the supplier of their marijuana, no they continue to purchase from suppliers on the street.  The old long-time providers of their recreational cannabis, and for some, the supplier of the medical marijuana that they require for health reasons are dependable and better priced.

Many pot users feel that the prices of legal pot are over-the-top. Purchasing an ounce of marijuana on the street will cost you about $170, if purchased through the licensed dispensaries, you will pay about $270.

It becomes a matter of how to spend your money, and it’s about the dollars. Put the calculations down to grams, and it becomes an issue of paying $9.99 per gram from legitimate sources, compared to paying $6.37 per gram on the black market. It breaks down to nearly $3 a gram cheaper when buying on the street, and that's what makes the black marketable to continue to flourish.

When the government announced marijuana legalization, many long-time customers of illegal marijuana suppliers did not desert the supplier. When the issues around shortages of products began after legalization, coupled with problems of very few mortar and brick shops selling the herb; the black market opened their arms to the frustrated recreational cannabis user. The black market provided the pot user who used for medical marijuana or recreational cannabis use an option. The price was lower, and the supply was always there.

The black market has proven to be holding its own in the sales of recreational cannabis since marijuana legalization took effect in Canada. Ontario, which is the most populated province, was a perfect storm for the illicit cannabis market. The government issued only 25 licenses for brick and mortar dispensaries in this province alluding to the issue is a national supply problem.

The black market had no problem meeting the supply and demand shortages that were covering the legal sales. They continued to supply the medical marijuana and recreational marijuana to Canada’s marijuana users.


The recreational cannabis user is choosing to purchase the illegal, cheaper weed and then use the legal containers to house the black market weed.

Sales in the black market continue to flourish, there is, however, disappointment from the black-market suppliers that the government did not follow through with allowing the black market cannabis business provider to come forward; and legally use the skills and knowledge that they have been using for decades. The government stopped that, with only allowing three provinces to operate privately owned dispensaries.

The black market will continue to sustain itself against legal marijuana that is available in Canada.

The black market is ready again to open its arms to the frustrated people in Canada. When the second stage of legalization is rolled out, edibles, lotions, and drinks are part of the deal. Will the same problems that were experienced with marijuana legalization in 2018 be present?

The black market is ready and waiting to assist the recreational cannabis and the medical marijuana patient with the cannabis they need.

The evolution of the black market cannabis in Canada


Related posts