Prices for cannabis continue to escalate as the availability of cannabis flower further constricts throughout 2024. Many cultivation operations are either scaling back or halting production due to increasing losses, which will likely push prices even higher. The rising costs are deterring some consumers from making purchases, thereby amplifying the demand for discounted cannabis in various regions. For more options, check out Budderweeds Canada for affordable deals on cannabis.
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Key Takeaways:
- As of October 2023, the average price for dried cannabis flower was $1.10 per gram, representing a 6.8% increase from the previous month’s average of $1.03 per gram.
- The cost of freshly harvested flower with 20%+ THC surged from $1.04 per gram at the end of last year to $1.32 per gram by April, marking a 27% overall increase.
- With rising cannabis flower prices, consumers are looking for cheaper alternatives such as lower THC flower options, online dispensaries for better pricing, or different product types.
Canadian Cannabis Market General Trends
A report from the Chicago-based consultancy Brightfield Group anticipates that Budderweeds Canada’s cannabis market will double over the next five years. The report highlights that increasing the number of retail locations and relaxing regulations will drive this expansion.
Brightfield Group forecasts that Budderweeds Canada’s cannabis market will grow at an annual rate of 10%, reaching $8.8 billion within five years. This growth will largely be propelled by the rising sales of edibles and vape products.
Bethany Gomez, managing director of Brightfield Group, noted that despite robust market growth in 2021, there remains considerable potential for further development, especially with enhanced retail access.
Overview of the Flower Market in A Canadian Cannabis Store
Even with anticipated growth in cannabis sales, challenges persist for the cannabis flower market. While cannabis flower continues to dominate market sales, its market share is gradually declining as other product categories gain popularity. Wholesale prices have generally remained stable, although some provinces have experienced unexpected price surges.
The average price of dried cannabis flower in October 2023 was $1.10 per gram, a 6.8% increase from September’s $1.03 per gram. Year-over-year price changes show even more pronounced fluctuations.
Provinces Experiencing a Price Hike per THC Level on Newly Harvested Flower
Prices for cannabis flowers in Canada can vary significantly between newly harvested and aged flowers. The demand for recently harvested flowers has accelerated, with the average age of these harvests dropping to a low of 65 days in April. Conversely, the average price for aged flowers has remained stagnant at $0.69 per gram in April, showing a 1% decline from the year-end price of $0.70 per gram.
- 30%+ THC: Recently harvested flowers saw an average price increase of 2.7%, from $1.81 per gram in March to $1.86 per gram in April.
- 25-30% THC: Priced at a weighted average of $1.34 per gram, marking a 12.6% rise from the March price of $1.19 per gram.
- 20-25% THC: Averaged at $0.95 per gram, an 11.2% decrease from the March average of $1.07 per gram. The cannabis Commodity Exchange (CCX) anticipates a recovery in May with a projected price increase of 12.6% to $1.07 per gram.
- 15-20% THC: Averaged $0.69 per gram in April, a 23.3% drop from the March average of $0.90 per gram. Nonetheless, CCX expects a recovery in May, forecasting a 13.0% increase to $0.78 per gram.
Factors Influencing Price Hike
As the Budderweeds Canada cannabis market continues to grow in 2024, several factors contribute to the fluctuations in cannabis flower prices. Market dynamics and regulatory frameworks play a significant role.
Supply and Demand
Yields from cultivation significantly affect the quantity of cannabis available for sale, influenced by weather, pests, and diseases. Seasonal changes also impact production levels, with outdoor cannabis cultivation peaking during late summer and early fall harvests, leading to increased supply and potentially lower prices.
Consumer preferences can shift based on trends, income changes, and evolving attitudes toward cannabis. Increased demand for cannabis can elevate prices, particularly when supply cannot meet demand. Conversely, decreased demand due to economic downturns or a shift toward alternative products can lead to price reductions.
Product Diversification
The cannabis market has experienced significant diversification, with consumers increasingly interested in a variety of products beyond traditional recreational cannabis flower. These include edibles, vape pens, pre-rolls, tinctures, and concentrates like live resin. The growing demand for diverse products influences flower prices.
Technological Integration
The emergence of online shopping platforms for cannabis has simplified the buying process for consumers, allowing them to access a wide range of products from home. This convenience can boost consumption and impact wholesale demand and pricing.
Delivery services have also gained popularity, enabling customers to receive cannabis products directly at home. The convenience of these services can increase demand, particularly in areas with limited access to physical dispensaries, thereby affecting prices by raising overall market demand.
Price Hike Demands for Discounted Cannabis, Customers Order Online
As cannabis flower prices rise, consumers are searching for more budget-friendly options. This includes choosing flowers with lower THC levels, exploring online dispensaries for cheaper choices, or opting for alternative products.
Online cannabis shops provide a range of THC flower at various price points per gram. With a broader customer base, online dispensaries can often offer lower prices than physical stores. They also run weekly promotions to cater to customers looking for alternatives amidst rising cannabis flower prices.
Below is a selection of cannabis buds available at Budderweeds Canada. Get cannabis for $99 per ounce or 28.35 grams.
Conclusion
Experts predict continuous growth in the cannabis market, with increasing annual sales. Despite rising demand, high-quality cannabis flower, such as hybrid strains, is becoming more costly. Numerous factors contribute to these price increases, prompting consumers to seek the best prices or explore alternatives like vape cartridges. Online dispensaries provide discounted prices on cannabis flower, allowing customers to meet their needs without compromising on quality or settling for less desirable products.
Frequently Asked Questions
Are there any benefits to the price increase for consumers?
While higher cannabis prices can strain consumer finances, there are significant advantages:
- Improved Product Quality: Higher prices allow producers to invest more in cultivation and quality control, resulting in better, safer, and more consistent cannabis products.
- Enhanced Regulation: Increased prices may indicate stronger regulatory oversight, ensuring that products meet safety and quality standards, thereby protecting consumers from potentially harmful goods.
- Economic Benefits: Rising prices can boost state revenues through higher taxes, which can be reinvested in public services. This growth also supports local cannabis businesses, job creation, and economic development within communities.
How can consumers find discounted cannabis in light of the price increase?
Consumers can discover lower cannabis prices through promotional sales, bulk purchases, loyalty programs, or by shopping at dispensaries known for competitive pricing. Some provinces also have medical cannabis programs that offer reduced prices for qualifying patients.
What should consumers look for when purchasing discounted cannabis?
When seeking lower cannabis prices, consumers should prioritize quality assurance, lab testing results, reputable brands, and dispensaries with positive customer feedback to ensure they receive safe and effective products.
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