Report Shows Flaws of California Adult-use Cannabis Market

A new report from cannabis delivery company Eaze highlights the challenges the legal market in California faces due to illicit sales.

The report claims that although 84 percent of California residents are satisfied with the legal market, one in five Californians has purchased a product from the black market in the past three months.

“A significant portion of California consumers who still purchase cannabis from unlicensed sources are satisfied with those sources, and are not incentivized to change,” the report says.

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The study was done via an online poll of California and Colorado residents 21 years and older who had consumed cannabis in the past 30 days. Additional data was added from Eaze users.

In May, the California Department of Tax and Fee Administration (CDTFA) revealed the state had raked in US$60.9 million in tax revenue for sales in Q1 2018. Sales tax represented US$27.3 million of the total.

California legalized recreational cannabis this year, with sales starting on January 1.

After the release of results from the CDTFA, the Legislative Analyst’s Office for the state reduced its projections on tax revenue from an initial US$175 million for the entire year.

Consumers in California, according to Eaze, still face roadblocks when purchasing recreational cannabis. The three main complaints from consumers are taxes being too high, no electronic payment options and prices being too high.

In a San Francisco Business Times editorial it Continue Reading

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