I sort of question the framing here? Not yours, but the article's. There is exactly enough demand, because however much people want of a mostly harmless plant is how much people should want of that plant. Nobody turning a profit should be no surprise: farmers barely turn a profit either, because selling commodities is not a means of getting rich quick. Considering how low-risk buying pot was before legalization, it boggles the mind why anyone thought there would be a huge growth in consumption, especially when the legal product is priced so much higher that it might as well still be illegal.
As far as why such a low fraction of transactions are in the legal market: the only way to move pot transactions out off the black market would be to either make it substantially as convenient to buy it legally, or to dramatically increase enforcement against black market transactions at the same time that weed was legalized. It seems Canada did neither.
As a culture, we over produce, under consume and just throw the rest away. Ever looked into the dumpsters behind super markets?
I may have known a grower who would always struggle with the seasons. Indoor growing is year round, but the outdoor stuff is what everyone wants. So every time the outdoor harvests would happen, it was nearly impossible to sell the indoor stuff.
So now you combine massive indoor with massive outdoor and year round production... and a customer base that is also trained to be seasonal (wait to stock up on the best stuff when it is available)... total recipe for failure.
Needless to say, my grower friend saw the writing on the wall and exited the business before things became legal. It was really too bad, their multi-year cultured strain was excellent and no longer exists now.
That whole hippy sun / nature plant thing appeals to people.
Less sarcastically, there is two types of indoor. Hydro and soil. The hydro based is only grown in water and fertilizer and as a result, has a more chemical taste to it. Since both are fed very specific spectrum lights and even airflow (added co2 is common), they also develop their own characteristics.
Outdoor brings people back to that natural feeling. Of course there is different outdoors too... like container based or just allowed to grow like a tree. Elevation, climate, water, bugs, etc... all play a role.
At this point, strength is all relative... it has been enough years of professional growth that the strains are all super strong and bred for very specific highs.
The botany of weed is fascinating. It grows like a weed, but it is a super complex plant in the things that it requires to grow well.
>Considering how low-risk buying pot was before legalization, it boggles the mind why anyone thought there would be a huge growth in consumption, especially when the legal product is priced so much higher that it might as well still be illegal.
I have no idea how much consumption has changed. But for a casual/occasional user seeking out a dealer seems like a fairly high bar. And even if legal prices are higher, again for a casual user, the total incremental amount seems pretty trivial.
As far as why such a low fraction of transactions are in the legal market: the only way to move pot transactions out off the black market would be to either make it substantially as convenient to buy it legally, or to dramatically increase enforcement against black market transactions at the same time that weed was legalized. It seems Canada did neither.