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News analysis

Why do cannabis black markets persist in US states where recreational use is legal?

Written by || 27th September 2021 || News analysis | Marketing and retailing | Policy and Politics | GeographiesNorth America United States

The prime reason black markets continue to operate in US states where recreational cannabis has been legalised is the issue of licensing. Although many point to tax rates driving legal prices higher than those on the illicit market, access plays a bigger role than price, according to experts.

The exact size of recreational black markets is inevitably difficult to determine. And much production activity appears in fact to be aimed at other markets, where recreational cannabis remains prohibited.

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This article was written by one of CannIntelligence’s international correspondents. We currently employ more than 40 reporters around the world to cover individual cannabis and cannabinoid markets. For a full list, please see our Who We Are page.

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