The prices of cannabis are on the rise. Throughout 2024, the availability of cannabis flower is tightening as numerous cultivation operations are either cutting back or halting production due to escalating losses. This diminished supply is expected to push prices even higher. The increasing costs are deterring some consumers from buying, which, in turn, is amplifying the demand for discounted cannabis in various regions offered by Canada Wide Weed Shop.
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Key Takeaways:
- As of October 2023, the average price of dried cannabis flower was $1.10 per gram, reflecting a 6.8% increase from September’s average of $1.03 per gram.
- The price of freshly harvested flower with over 20% THC surged from $1.04 per gram at the close of last year to $1.32 per gram by April, marking a 27% overall increase.
- With rising cannabis flower prices, consumers are turning to cheaper alternatives like lower THC flower percentages or exploring online dispensaries for better pricing through Canada Wide Weed Shop.
Canadian Cannabis Market General Trends
A report from the Chicago-based Brightfield Group anticipates that Canada’s cannabis market will double in the next five years. This growth is attributed to the opening of more retail outlets and relaxed regulations.
Brightfield Group predicts that Canada’s cannabis market will expand at an annual rate of 10%, reaching $8.8 billion in five years. This increase will largely stem from heightened sales of edibles and vape products.
Bethany Gomez, managing director of Brightfield Group, noted that despite significant market growth in 2021, there remains substantial potential for further expansion, particularly with improved retail access.
Overview of the Flower Market in A Canadian Cannabis Store
Even with expected growth in cannabis sales, challenges persist in the cannabis flower market. While cannabis flower continues to dominate sales, its market share is gradually decreasing as other categories gain popularity. Wholesale prices have remained relatively stable, although some regions have witnessed unexpected price hikes.
The average price for dried cannabis flower in October 2023 was $1.10 per gram, a 6.8% rise from the September average of $1.03 per gram. Year-over-year pricing reflects even more pronounced shifts.
Provinces Experiencing a Price Hike per THC Level on Newly Harvested Flower
The pricing of cannabis flowers in Canada can differ based on whether they are newly harvested or aged. Recently harvested flowers are selling rapidly, with their average age dropping to a low of 65 days in April. Conversely, the average price for aged flowers has largely stagnated at $0.69 per gram in April, showing a 1% decrease from the end-of-year 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: Traded at an average of $1.34 per gram, which is a 12.6% increase from the March price of $1.19 per gram.
- 20-25% THC: Settled at $0.95 per gram, an 11.2% drop from March’s average price of $1.07 per gram. The cannabis Commodity Exchange (CCX) predicts a May recovery with prices expected to rise by 12.6% to $1.07 per gram.
- 15-20% THC: Averaged $0.69 per gram in April, a 23.3% decline from the March price of $0.90 per gram. Nevertheless, CCX anticipates a recovery in May, with a 13.0% increase to $0.78 per gram.
Factors Influencing Price Hike
As the cannabis market expands in 2024, multiple factors are contributing to the fluctuations in cannabis flower prices, intertwining market dynamics and regulatory frameworks.
Supply and Demand
The yields from cultivation significantly affect the available quantity of cannabis in the market, a factor influenced by weather, pests, and diseases. Seasonal variations also impact production levels, with outdoor cannabis cultivation peaking during late summer and early fall, leading to an oversupply that can reduce prices.
Shifts in consumer preferences can occur due to trends, changes in disposable income, and evolving views on cannabis. An uptick in demand for cannabis products can elevate prices, particularly if supply cannot keep up. Conversely, a decrease in demand, possibly due to economic downturns or a shift towards alternative products, can lead to lowered prices.
Product Diversification
The cannabis market has experienced significant diversification, with consumers interested in a wide array of products beyond traditional recreational cannabis flower. These include edibles, vape pens, pre-rolls, tinctures, and concentrates like live resin. The rising demand for these varied products can influence flower prices.
Technological Integration
The emergence of online shopping platforms for cannabis has simplified the purchase process for consumers seeking a diverse range of cannabis products from home. This ease of access can boost consumption, impacting wholesale demand and prices.
Delivery services have also gained traction, allowing customers to receive cannabis products directly at home. The convenience of delivery services can enhance demand, particularly in areas with limited access to physical dispensaries, thereby influencing prices by increasing overall market demand.
Price Hike Demands for Discounted Cannabis, Customers Order Online
As the price of cannabis flower escalates, consumers are searching for more budget-friendly options. This includes purchasing lower THC flower, exploring online dispensaries for cheaper alternatives, or opting for other products.
Online cannabis shops feature a wide selection of THC flower at varying price points per gram. Due to a broader customer base, online dispensaries often provide lower prices than physical stores. They also offer weekly promotions to help customers cope with rising prices in other cannabis flower varieties.
Here’s a selection of cannabis buds available at Canada Wide Weed Shop, priced at $99 per ounce or 28.35 grams.
Conclusion
Market experts predict ongoing growth in the cannabis sector, with annual sales on the rise. Despite heightened demand, premium cannabis flower, especially hybrid strains, is becoming increasingly costly. Various factors contribute to these price hikes, prompting consumers to seek the best deals or explore alternative products like vape cartridges. Online dispensaries provide discounted cannabis flower, enabling customers to fulfill their needs without sacrificing quality or settling for less desirable products.
Frequently Asked Questions
Are there any benefits to the price increase for consumers?
Even though higher cannabis prices can burden consumers financially, there are several notable advantages:
- Improved Product Quality: Elevated prices allow producers to invest more in cultivation practices and quality control, leading to superior, safer, and more reliable cannabis products.
- Enhanced Regulation: Rising prices can indicate stronger regulatory oversight, ensuring that products meet safety and quality standards, protecting consumers from potentially harmful goods.
- Economic Benefits: Increased prices can boost state revenues through higher taxes, which can be reinvested into public services. This also supports the growth of local cannabis businesses and community economic development.
How can consumers find discounted cannabis in light of the price increase?
Consumers can locate lower cannabis prices through promotional sales, bulk buying, loyalty programs, or by shopping at dispensaries known for offering lower prices. Some provinces also have medical cannabis programs that provide discounted rates 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 reviews to ensure they obtain safe and effective products.
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