Differences in self-reported cannabis prices across purchase source and quantity purchased among Canadians

Abstract

Background: In October 2018, Canada legalized non-medical cannabis. A primary goal of legalization is to reduce illicit market transactions; however, there is little ‘baseline’ data on the price and purchase sources of cannabis prior to legalization in Canada. This study examined the self-reported price of dried cannabis, quantity purchased, and sources used before retail stores opened.

Methods: Data come from the baseline wave of the International Cannabis Policy Study (ICPS), a prospective cohort survey conducted in August–October 2018, immediately before legalization. Respondents were 1227 Canadians aged 16–65 years who reported purchasing dried cannabis in the past 12 months. Respondents were recruited using the Nielsen Consumer Insights Global Panel. A linear regression model examined price-per-gram by quantity purchased, source used, and socio-demographics.

Results: Overall, the mean self-reported price-per-gram among cannabis users was C$9.56 (standard errors of the mean [SEM] = 0.2). The price-per-gram of cannabis significantly decreased as quantity purchased increased. For example, the mean price of cannabis purchased in smaller quantities (<3.5 g) ($12.81/g, SEM = 0.5) was more than double the price of cannabis purchased in larger quantities (>28 g) ($5.60/g, SEM = 0.2). The estimated quantity discount elasticity was −0.21 (95% CI: −0.25, −0.18). The most common purchase sources used were family member/friends (53.0%) and illicit street dealers (51.7%). Price-per-gram varied across sources; however, variation was largely accounted for by consumers purchasing different quantities at different sources.

Conclusions: Variations in the price of dried cannabis were largely determined by the quantity purchased. The findings highlight the importance of accounting for purchase quantity when assessing cannabis prices, particularly in illicit markets.

Keywords:

• Cannabis
• marijuana
• price
• legalization
• quantity discount
• illicit market

Acknowledgments

We thank Beau Kilmer for his helpful comments and suggestions.

Disclosure statement

The authors report no conflict of interest.

Notes

1 Participants were asked: “Were you able to provide ‘honest’ answers about your marijuana use during the survey?” with response options: “No”, “For some questions, but not all”, “Yes, for all questions”.

Additional information

Funding

Funding for this study was provided by a Canadian Institutes of Health Research (CIHR) Project Bridge Grant (PJT-153342) and a CIHR Project Grant. Additional support was provided by a Public Health Agency of Canada-CIHR Chair in Applied Public Health (Hammond), and a Vanier Canada Graduate Scholarship (Wadsworth).