Cannabis legalization in California has been the biggest change in the industry since the 1996 Compassionate Use Act. Back in 2016, California became the largest state to legalize the adult use of marijuana, which changed the conversation about cannabis significantly. With the new laws in place, there have been significant changes in the cannabis industry and most notably, in the black market. In this blog post, we will take a deep dive into how legalization of cannabis has impacted the black market industry in California.

Reduction in the Black Market:

The legalization of cannabis has created an increase in demand while decreasing the supply of the black market. Legalization has given people the freedom to buy marijuana without fear, which has curbed the black market significantly. Today, most marijuana users choose to buy from legally recognized sellers, which has reduced the black market. Legalization has also prompted legal cannabis dispensaries to enter the market, which in turn has reduced the black market for cannabis products.

Increase in Legitimate Business:

In California, the legalization of cannabis has created legitimate business entities engaged in the production and sale of cannabis. Legitimate cannabis businesses need government permits and licenses to operate, which ensures they follow the laid down rules and regulations. The legalization of cannabis has helped the state generate millions of dollars in tax revenues. The sales from legal business are skyrocketing, and this has had a significant impact on tax revenues. 

Elimination of Criminal Activities:

Gone are the days when marijuana was associated with criminal activities. Now, with legal businesses available, suppliers can conduct business without worry. This has not only reduced the number of people involved in illegal business, but also destabilized criminal organizations who used black markets to make profits. The legalization of cannabis has led to increased accountability, which has eliminated shady business activities associated with black markets.

Protecting Consumer Health:

Legalization of cannabis in California has created a regulated market designed to protect consumer health. Before legalization, there were no regulations on the safety of marijuana, and users had no idea what they were consuming. With the legalization of cannabis, people are now more informed about the products they buy. Legitimate dispensaries must test their products and give detailed information about the marijuana they sell, including its potency. Users now buy cannabis products without the fear of getting sick.

A Change in Consumers’ Perception:

With the legalization of cannabis in California, people are now more educated about the drug and its benefits. They are encouraged to try marijuana weed as a way to treat different ailments and conditions. The legalization of cannabis has made many people normalize and embrace the drug. This has resulted in creating a new culture surrounding the consumption of marijuana that is far from being criminalized.

The legalization of cannabis in California has extensively changed the cannabis market, making the drug more accessible than ever before. Legalization has brought with it regulation and industry structure, which has eliminated many disadvantages of the black market. This has made the cannabis available to those who need it most and has helped generate millions of dollars in tax revenues. All of these benefits of legalization make cannabis use a socially accepted conduct. As a result, it’s attracting more patients and enthusiasts into the cannabis industry, promising potential growth for the future.