Survey Reveals Potential Black Market Surge if Cannabis Rescheduling Disrupts State-Legal Markets

The landscape of the cannabis industry faces potential upheaval as a new consumer poll from NuggMD.com reveals that approximately one in three cannabis consumers would revert to the black market should federal rescheduling of cannabis fail to preserve state-legal marketplaces. This concern arises amidst recommendations by federal health regulators to reclassify cannabis from a Schedule I to a Schedule III controlled substance, a move that could restrict access to cannabis products to pharmacies and require prescriptions, diverging from the current state-regulated dispensary model.

The poll, the first of its kind to gauge the reactions of regular cannabis users to such a regulatory shift, found that 69% of respondents prefer state-controlled cannabis markets, with 77% favoring botanical products from traditional dispensaries over FDA-approved alternatives available at pharmacies. Furthermore, over 80% of participants expressed trust in state testing controls to ensure the safety and accurate labeling of cannabis products.

Deb Tharp, NuggMD's head of legal and policy research, voiced concerns over the potential for pharmaceutical companies to dominate the market post-rescheduling, leveraging regulatory capture and lawsuits to marginalize state-legal cannabis products. Tharp emphasizes the necessity for Congressional action, such as the STATES Act or MORE Act, to safeguard state markets and consumer preferences for whole-herb cannabis products.

The implications of these findings are significant, not only for consumers but also for the broader cannabis industry and state economies reliant on the legal cannabis market. The preference for state-regulated products underscores the importance of maintaining access to traditional cannabis forms, which have proven effective for consumers, against the backdrop of potential pharmaceutical industry encroachment.

Conducted from December 11 to December 18, the poll surveyed 795 out of 19,335 contacted cannabis consumers, achieving a margin of error of 3.5% at a 95% confidence level. The detailed results underscore the critical juncture at which cannabis policy stands, with consumer behavior and market dynamics hanging in the balance of federal decisions.