Why Do Americans Still Buy Non-Legal Weed? Illicit Cannabis Sales 3 Times Higher Than Legal Marijuana Sales
This article was originally published on MG Magazine and appears here with permission.
WASHINGTON – Illicit cannabis sales exceeded $74 billion in 2022, outpacing the country’s legal sales of $28 billion by a staggering 164 percent according to New Frontier Data’s latest report about cannabis consumers in America. The stark gap presents clear opportunities for legal operators who can appeal to the frequent consumers who’ve become dependent on unregulated channels and the millions of adults who’ve shown an interest in cannabis but remain hesitant to try it.
To understand the underlying issues driving the industry’s multi-billion-dollar problem, New Frontier Data surveyed more than 5,500 U.S. adults across all market types. The demographically representative sample was surveyed during Q1 2023 and includes consumers who rely on a broad range of sources to procure cannabis.
U.S. Cannabis Consumer In A Snapshot
Approximately 42 percent of U.S. consumers source cannabis from state-regulated markets.
Thirty-four percent live in adult-use markets.
Eight percent are registered patients in medical-only markets.
About 24 percent of U.S. consumers have access to state-legal cannabis but do not use licensed retailers as a primary source.
Seventeen percent reside in adult-use markets but source cannabis elsewhere, usually from friends, family, or illicit dealers.
Seven percent live in medical-only markets but do not participate in their state’s medical program.
The other 34 percent of U.S. consumers do not have adequate access in their home state and would need policy reform to join the licensed cannabis market.
Twenty-three percent live in states where cannabis is illegal.
Eleven percent are non-medical consumers in medical states.
Converting Illicit Consumers To Retail Customers
While most dispensaries are competing against each other to serve the same group of people who’ve committed to legal markets, there are …