Market structure and regulation have made medical cannabis far more expensive than illegal products, and consumers are choosing the cheaper option.
A new state report estimates only about 20% of the marijuana sold in Hawaii last year came from local marijuana dispensaries, and blames “market structure and regulation” for driving consumers to buy from illegal growers and sellers.
The report by the Tax Working Group of the Dual Use of Cannabis Task Force estimates the existing marijuana market in Hawaii is worth about $240 million a year, and a mature market could grow to about $354 million annually if recreational marijuana is legalized.