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this post was submitted on 19 Aug 2023
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Yup. Just like any new market/product. A pile of people rush in, a pile fail, and the rest consolidate into a few well established players and dominate the market.
In a previous career, I was involved in salmon aquaculture in the Bay of Fundy. When I first got in, along with dozens of other companies, we were getting $8.50/lb at the farm. Five years later, we were struggling to get $2.50/lb, which wasn't enough to cover production costs. Thirty years later, there's basically one company dominating in the area. Profitability is still dodgy.
StatsCan has been doing a fair amount of surveying on cannabis in general. They found that 69% (nice) of users buy from legal storefronts or legal websites. Another 25% was home-grown, or from friends/family. The remaining 6% was from dealers or illegal shops/websites.
https://www.canada.ca/content/dam/hc-sc/images/services/drugs-medication/cannabis/research-data/canadian-cannabis-survey-2022-summary/fig12-eng.jpg
https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/research-data/canadian-cannabis-survey-2022-summary.html