Black market may not be major threat to recreational marijuana
The threat the black market poses to legalized recreational cannabis sales may have been overstated, according to a new study released by Marijuana Business Daily. This study showed that more than 60% of cannabis users said their biggest concern when purchasing marijuana is buying it from legal sources, and a large percentage prefer to buy tested, labeled cannabis. Legal retailers and growers have long been concerned because black market producers have a much lower cost of goods since they don’t havel ab testing fees or licensing fees and often don’t pay taxes. A second factor that the study mentioned is that most black market producers have longstanding customer relations that might present a barrier to competition. Both these factors, however, may be the least important market drivers with just 17% and 5% of responses respectively according to a survey they conducted of self-identified cannabis consumers who use marijuana for recreational versus medical purposes. The study didn’t completely dismiss the threat however. It noted that With tens of billions of dollars in sales at stake, criminal elements who control the current black market could be fighting to retain market share, particularly in unregulated states.