What drives cannabis purchase decisions in a legal market? | Research

The takeaway

In Canada's legal cannabis market, price differences between licensed and unlicensed sources, product quality, and social influences all shaped purchase decisions, while packaging and warning labels had little impact.

Policymakers, regulators, and researchers studying legal cannabis markets.

Price gap between legal and illegal sources was the top concern

What the researchers found

Among 23 cannabis consumers in Newfoundland and Labrador, five themes drove purchase decisions: price, quality, packaging/warnings, source, and social influences. The price gap between licensed and unlicensed retailers was the most discussed factor keeping consumers in the illicit market. Participants were largely indifferent to packaging and warnings but concerned about excessive regulatory packaging.

Why it matters

More than two years after legalization, a large share of Canadian cannabis purchases still came from unlicensed sources. Understanding why helps policymakers make regulated products more competitive.

The numbers in context

23 participants (30% women, 83% urban). Five broad themes identified. Discussions focused primarily on dried flower products.

How the study worked

Qualitative study using semi-structured focus groups and interviews with 23 individuals (30% women, 83% urban) who had purchased cannabis in the past 12 months. Thematic analysis with deductive and inductive coding using NVivo.

What this study cannot tell us

Small sample from one Canadian province. Predominantly urban and male participants. Qualitative design cannot quantify the relative importance of each factor.

How to read the evidence

Small qualitative study from one province; useful for generating hypotheses but not generalizable.

When this study was published

Published in 2022 reflecting post-2018 legalization experiences.

The bigger picture

The findings suggest that purely regulatory approaches like warning labels may not shift consumer behavior. Price competitiveness and product quality standards may be more effective at moving purchases to the legal market.

Questions still open

At what price point would most consumers switch to legal sources? Would reducing packaging requirements improve perceptions of legal products?

Common questions

Why were people still buying from unlicensed sources?

Price was the most commonly discussed factor. Legal cannabis was more expensive than unlicensed alternatives, which kept some consumers in the illicit market despite legalization.

Did warning labels affect purchase decisions?

No. Participants were generally indifferent to packaging and warning labels. Some expressed frustration with what they saw as excessive packaging requirements for regulated products.

Read the original research

Drivers of purchase decisions for cannabis products among consumers in a legalized market: a qualitative study.

BMC public health, 22(1), 368

View on PubMed ↗Publisher’s paper ↗

Citation

Donnan, Jennifer; Shogan, Omar; Bishop, Lisa; Najafizada, Maisam. (2022). Drivers of purchase decisions for cannabis products among consumers in a legalized market: a qualitative study.. BMC public health, 22(1), 368. https://doi.org/10.1186/s12889-021-12399-9