Going Legit: Legal Cannabis Now Dominates
By John Persinos
As the green rush sweeps through legalized states, it turns out that most cannabis consumers are choosing to go legit. With nearly 80% of buyers now lighting up with products from licensed retailers, the black market's days may finally be numbered.
In states where marijuana has been legalized, a significant majority of cannabis consumers—nearly 80%—are purchasing their products from licensed retailers. This trend lends strong support to the idea that regulated markets are effective in curbing the influence of illicit sellers, a long-standing challenge for the legal cannabis industry.
Despite the rapid spread of marijuana legalization throughout the U.S., the black market has shown stubborn resilience. Illicit sales cut into the revenue and profits of the cannabis industry and have been a headwind for investors. But it appears that the tide is turning.
The findings come from a recent survey conducted by NuggMD, a prominent cannabis telehealth platform, which revealed that 77% of consumers in legal marijuana markets acquire most or all of their cannabis from authorized stores. The survey was released August 12.
More specifically, 65% of those surveyed reported that they exclusively purchase their cannabis from licensed outlets, while an additional 12% indicated that the majority of their purchases also come from these regulated sources.
On the other hand, a smaller portion of consumers remains divided between legal and illegal avenues. About 7% said they obtain roughly half of their cannabis legally, 4% stated that less than half of their marijuana comes from licensed retailers, and 6% admitted to relying entirely on unregulated sources. Interestingly, 4% of respondents were unsure whether the stores they frequented were licensed or not.
This survey, which included 473 participants, has a margin of error of approximately +/- 4.51 percentage points, according to NuggMD.
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