The introduction of cannabis markets in nations such as Canada has not met expectations. Predictions from major corporations and venture capitalists significantly outpaced the actual market demand.
Currently, significant production facilities are shutting down, large stocks of dried flower remain unsold, and the illicit market continues to dominate approximately 80% of the estimated $8 billion Canadian industry.
In spite of these obstacles, innovative business models are starting to take shape. Entrepreneurs are increasingly leaning towards smaller micro-cultivation facilities to produce premium craft cannabis strains, aiming to reduce costs and enhance the quality of marijuana. This transition may alleviate the industry’s supply surplus, as micro-cultivation operates on a more modest scale.
For the finest quality cannabis, you can now “Buy Craft cannabis Canada.”
Table of Contents
Canadian cannabis Market
While large facilities like Canopy’s are closing, smaller, boutique-style cultivation operations are emerging as the future of the industry. According to Althing Consulting, these 20,000-square-foot facilities are replacing the massive ones.
Consumers are increasingly favoring small-scale producers for their high-quality craft cannabis. Prices are also declining. This trend aligns with global marketing patterns.
By the conclusion of 2022, Canada’s indoor growing area had decreased by 28% from its 2020 peak. The federal government issued only 58 standard cultivation licenses in 2022, marking the lowest issuance since 2018.
In contrast to standard licenses that impose no size restrictions, micro-class permits limit cultivation to 200 square meters (2,150 square feet). In 2022, 130 new micro licenses were granted, surpassing standard licenses for the second consecutive year. In 2021, there were 106 standard licenses versus 134 micro licenses.
Micro vs. Standard cannabis Cultivation Licenses in Canada
The peak of new standard cannabis cultivation licenses in Canada occurred in 2020, during a period of overproduction and waste of unsold products.
Note: Micro licensees are constrained to 200 square meters of growing area, while standard licensees have no such limitation.
Growing Interest in Craft Strains
Consumers are balancing price sensitivity with a desire for the highest-quality products they can afford, leading many to favor micro-cultivators.
Micro-cultivators are capable of growing high-THC, premium products more consistently than large-scale growers operating under standard licenses, which are generally used for larger, value-oriented production. Smaller production schemes are typically recognized for producing superior-quality strains.
The transition towards premium and high-potency products has proven financially viable, with increased costs necessitating higher production to achieve a return on investment. Similar to the wine industry, some consumers seek authentic products typically found in micro-licensed facilities.
Large corporations with standard licenses, such as Canopy Growth and Indiva, are increasingly collaborating with micro-license holders. This strategy enables large licensed producers to efficiently and cost-effectively deliver the best craft cannabis products to market by outsourcing cultivation to micro-cultivators.
Growing Micro-Weed Producers in Canada
The primary challenge remains the oversupply of strain products.
Canada is grappling with a significant oversupply of low-quality strains, prompting a shift towards smaller growing operations. As of December 2022, the nationwide inventory of dried flowers reached a staggering 1.47 billion grams (3.2 million pounds), most of which is held by licensed producers. This stockpile is approximately four times the amount sold at retail during that year.
Despite the surplus, a focus on smaller cultivation businesses may assist in mitigating the supply glut. According to Health Canada, by the end of 2022, Canada’s indoor growing area had decreased by 28% from its peak in 2020.
Renovation Details
Renovations are underway for a micro-cultivation facility at the former PPG plant in Owen Sound. This initiative, led by Robert Stanford, president of Micro Marketing, aims to cultivate high-quality products in a 40,000-square-foot space within the Peninsula Pro-Growth Business Park. The initial phase includes four micro-cultivation units with five grow rooms designed to produce top-tier strains.
Stanford expresses enthusiasm for this venture, believing it to be unique in Canada. The facility will replicate the small, controlled environments typically used in black market cultivation, but within a legal framework. Buyers can invest in a grow table for $150,000, with an estimated annual profit of $66,000 after expenses. Each unit is equipped with necessary systems and security, with access limited to licensed individuals.
This project is not associated with MPX Bioceutical Corp, a prior proposal for the site. Stanford’s business model allows store operators to produce their private-label products. The facility is expected to generate high-paying local jobs. Future phases could significantly expand the project, potentially allowing for the cultivation of 50 different strains.
Owen Sound officials have expressed support, and this venture marks Micro Marketing’s first of several planned projects across the province.
Impact on Artisanal cannabis Production
The renovation and establishment of new facilities bring several impacts. Nowadays, consumers prefer to buy craft cannabis online rather than in commercial states. Why? Let’s explore the distinctions between the two.
Feature
Artisanal Cannabis
Commercial Cannabis
Definition: Small-scale, high-quality production
Large-scale cultivation, often perceived as average or lower-quality products
Scale of Production: Small, typically up to 200 sq meters
Large, no size limits on standard licenses
Ownership: Usually independent, high cultivator ownership
Significant external or investor ownership
Automation: Limited, hands-on cultivation
High automation for large-scale operations
Ingredients: High-quality, traditional or innovative nutrients
May use cost-saving substitutes
Cultivation Practices: Focus on quality and detail, innovative approaches
Efficiency-driven may prioritize yield over quality
Product Quality: Generally higher, rich cannabinoid and terpene profiles
Perceived as lower, but can still be high-quality
Drying and Curing: Smaller batches, easier quality management
Larger batches, challenging to maintain consistency
In summary:
- Craft Cannabis: Small-scale, high-quality production focusing on traditional or innovative cultivation practices and community involvement. Often associated with premium products and higher prices.
- Commercial Cannabis: Large-scale production prioritizing efficiency and yield. Can produce high-quality products but is often perceived as lower quality due to cost-saving measures and scale.
Buy Craft cannabis Canada: Product Selection
With an increasing number of retailers and sellers offering these strains, finding the best option can be daunting. But fret not; we have curated the finest craft cannabis available online.
Feature
Flavours: Herbal, tropical
Grape, sweet
Lavender, sage, vanilla
Strain Types: Sativa
Indica
Hybrid
THC: 21%
19.5%
25%
CBD: 0.5%
0.5%
0.2%
Genetics: Quantum Kush x Snow Lotus
Purple Urkle x Blue Dragon
Ken’s Granddaddy Purple x Mystic Gem
Aroma/Taste: Herbal, tropical
The musky scent, floral taste
Sweet basil, licorice
Effect: Uplifting, energizing
Cerebral, relaxing, pain-relieving
Creative head high, relaxing body feel
The Key Takeaway
AAAA craft, also known as quality cannabis, is on the rise in British Columbia and throughout Canada. Similar to other craft products, such as craft beer or craft coffee, it signifies superior quality. Cannabis strains like Miracle Alien Cookies, Purple Dragon, and Supersonic are recognized for their beneficial mental effects.
The Canadian cannabis market is transitioning from large-scale production to smaller facilities due to challenges such as overproduction and unsold inventory. These cultivators are gaining popularity for producing high-quality products, as evidenced by the increase in micro-cultivation licenses. Presently, the industry is concentrating on these small batches of strains to enhance quality and market reach.
Frequently Asked Questions
What are the Benefits of Artisanal Cannabis?
- Economic Boost: Supports small businesses, helping “mom-and-pop” shops thrive. Small batch growth often results in superior quality products, allowing these smaller businesses to compete in a crowded market.
- Eco-Friendly Practices: Different brands employ sustainable methods, growing plants in coconut husks and avoiding chemical pesticides. They customize nutrient formulations for each strain, ensuring optimal growth and minimal environmental impact.
- Organic Cultivation: Organic strains are grown without harmful pesticides. They utilize innovative, responsible methods and technology to produce the highest quality while reducing their carbon footprint.
- Outdoor Growing: Plants benefit from sunlight and fresh air, using beneficial microbes and insects instead of chemicals to safeguard their crops. This sustainable approach is better for the farm, environment, and product.
Where Does Craft cannabis Fit Into The Emerging cannabis Industry?
There’s a growing emphasis on sustainability and quality. Artisanal growers play a crucial role here. They operate on a small scale, ensuring consistent quality and better control over production. Unlike conventional methods, it emphasizes sustainable practices, using less water and electricity. This shift positions growers as pivotal in meeting the industry’s demand for sustainability and top-notch quality.
What is The Future of the Artisanal cannabis Industry?
The cannabis market is projected to grow steadily, according to a Global Business Accelerator report. Key factors include technological advancements and increasing environmental consciousness. Producers should prioritize product innovation, strategic partnerships, and expanding their reach to remain competitive.
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