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Ontario Cannabis Store Pot Sales Overtaking Illicit Market

Since the legalization of cannabis in Canada, the number of consumers opting to purchase products from the illicit market has been slowly decreasing. According a quarterly report released by the Ontario Cannabis Store (OHS), the first quarter of 2020 saw the legal cannabis industry account for over a quarter of the cannabis market in the province.

The provincial pot distributor’s review showed that in the fiscal first quarter of 2020, Ontario had a 25.1% share of the cannabis market, which accounts for a 0.4% increase from the prior quarter. Although the market share of legal cannabis sales in the province still lags behind national figures, the data does suggest that the legal market is encroaching on its illicit counterparts.

The OHS also noted that that its dried flower per-gram sale price of $7.05 is finally lower than illicit mail-order marijuana online prices of $7.98. The provincial distributor noted that its discounted sale price is the result of large scale 28-gram value offerings, which have become widely popular across the retail market. In fact, the 28-gram offerings accounted for 3.9% of dried flower sales in the prior quarter.

As Ontario’s cannabis market share continues to grow, it highlights the emerging effectiveness of Canada’s recreational pot legalization. According to Statistics Canada data, the beginning of 2020 has seen positive GDP fluctuations in the cannabis sector, suggesting that household spending on legal cannabis is beginning to outpace the illicit market.


Information for this briefing was found via OHS and Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

2 Responses

  1. It is impossible for anyone including stats Can to know the size of the illegal market. This story is false. And have ya tried there 7 dollar garbage ?

  2. This article is a joke! Clearly a trap for investors that knows nothing about the cannabis industry and the reality of the legacy market, which continues to thrive and grow. It will take many years to the legal market to even dream to catch up – it won’t happen until Legacy growers are allowed to migrate to the legal side, which the Cannabis Act has failed to enable.

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