The prices of cannabis are on the rise. As we move through 2024, the availability of cannabis flower is becoming increasingly limited. This is due to many cultivation operations reducing or halting production in light of growing financial losses. With supply tightening, prices are expected to soar even higher. The escalating costs are dissuading some users from making purchases, consequently increasing the demand for discounted cannabis in various regions, including those offered by CannaCured Canada for cannabis.
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Key Takeaways:
- In 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 recently harvested flower with 20%+ THC rose from $1.04 per gram at the end of last year to $1.32 per gram by April, marking a 27% overall increase.
- As cannabis flower prices rise, consumers are exploring cheaper options such as lower THC flower, online dispensaries for better deals, or alternative products available through CannaCured Canada featuring cannabis.
Canadian Cannabis Market General Trends
A report from Brightfield Group, a Chicago-based consultancy, anticipates that Canada’s cannabis market will double in size over the next five years. The report highlights that the expansion of retail outlets and relaxed regulations will be key drivers of this growth.
Brightfield Group forecasts that Canada’s cannabis market will grow at an annual rate of 10%, reaching $8.8 billion in five years, primarily driven by increased sales of edibles and vape products.
Bethany Gomez, managing director of Brightfield Group, noted that despite strong market growth in 2021, significant potential remains for further expansion, particularly with improved retail access through CannaCured Canada for products like cannabis.
Overview of the Flower Market in a Canadian Cannabis Store
Despite the expected growth in cannabis sales, challenges persist in the cannabis flower market. While cannabis flower continues to dominate sales, its market share is gradually declining as other product categories gain popularity. Wholesale prices have remained relatively stable, although some provinces are experiencing unexpected price increases.
The average price for dried cannabis flower in October 2023 was $1.10 per gram, a 6.8% increase from September’s average of $1.03 per gram.
Provinces Experiencing a Price Hike per THC Level on Newly Harvested Flower
The pricing of flowers in Canada varies between newly harvested and aged flower. Recently harvested flowers are selling quickly, with their average age dropping to just 65 days in April. Meanwhile, the average price for aged flowers has stagnated, settling at $0.69 per gram in April, which is a 1% decrease from the year-end price of $0.70 per gram.
- 30%+ THC: The average price for recently harvested flower increased by 2.7%, from $1.81 per gram in March to $1.86 per gram in April.
- 25-30% THC: Traded at a weighted average price of $1.34 per gram, marking a 12.6% increase from the March settlement price of $1.19 per gram.
- 20-25% THC: Settled at $0.95 per gram, an 11.2% decrease from the March average price of $1.07 per gram. The cannabis Commodity Exchange (CCX) has forecast a recovery in May, with prices expected to rise by 12.6% to $1.07 per gram.
- 15-20% THC: Traded at an average price of $0.69 per gram in April, a 23.3% decline from the March settlement price of $0.90 per gram. Nevertheless, CCX expects 15-20% THC to recover in May, with a projected 13.0% increase to $0.78 per gram.
Factors Influencing Price Hike
As the cannabis market continues to grow in 2024, several factors are driving fluctuations in cannabis flower prices. Market dynamics and regulatory conditions intertwine with these aspects.
Supply and Demand
Yields from cultivation significantly affect the amount of cannabis available in the market, which can vary due to weather, pests, and diseases. Seasonal changes also play a role, with specific times of the year yielding higher or lower production levels. For example, outdoor cannabis cultivation peaks during the harvest season in late summer and early fall, resulting in an influx of supply that may lower prices.
Consumer preferences may shift due to trends, changes in disposable income, and evolving attitudes toward cannabis. An uptick in demand for cannabis products can elevate prices, especially if supply cannot keep pace. Conversely, a decrease in demand, potentially due to economic downturns or a shift toward alternative products, can lead to lower prices.
Product Diversification
The cannabis market has witnessed considerable diversification, with consumers increasingly 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 offerings can influence flower prices.
Technological Integration
The emergence of online shopping platforms for cannabis products has simplified the process for consumers wishing to buy a vast selection of cannabis items from home. This ease of access can boost consumption and subsequently affect wholesale demand and pricing.
Delivery services have also gained traction, allowing customers to receive cannabis products directly at their doorsteps. The convenience of delivery options can increase demand, particularly in areas where physical dispensaries are less accessible, thereby affecting prices by elevating overall market demand.
Price Hike Demands for Discounted Cannabis, Customers Order Online
As cannabis flower prices continue to rise, consumers are actively searching for more affordable options. This includes purchasing flowers with lower THC levels, seeking out online dispensaries for cheaper alternatives, or opting for other products available at CannaCured Canada featuring cannabis.
Online cannabis retailers provide a variety of THC flower at different price points per gram. With a broader customer base, online dispensaries often offer lower prices than brick-and-mortar stores. They also run weekly promotions to help customers find alternatives if they are unable to afford the increased prices on other cannabis flowers.
Below is a list of cannabis buds currently on sale at CannaCured Canada. Get cannabis for $99 per ounce or 28.35 grams.
Conclusion
Experts anticipate that the cannabis market will continue to expand, with annual sales on the rise. Despite increasing demand, high-quality cannabis flower, particularly hybrid strains, are becoming pricier. Various factors contribute to these price hikes, prompting customers to seek the best deals or explore alternative products like vape carts. Online dispensaries, such as CannaCured Canada, offer discounted prices on cannabis flower, enabling customers to fulfill their needs without sacrificing quality or settling for less desirable options.
Frequently Asked Questions
Are there any benefits to the price increase for consumers?
While higher cannabis prices may create financial strain on consumers, there are notable advantages:
- Improved Product Quality: Rising prices allow producers to invest more in cultivation practices and quality control, resulting in better, safer, and more consistent cannabis products.
- Enhanced Regulation: Increased prices can signal stronger regulatory oversight, ensuring that products meet safety and quality standards and protecting consumers from potentially harmful goods.
- Economic Benefits: Higher prices can boost state revenues through increased taxes, allowing for reinvestment in public services. It also supports the growth of local cannabis businesses and job creation within the community.
How can consumers find discounted cannabis in light of the price increase?
Consumers can locate lower cannabis prices through promotional sales, bulk purchasing, loyalty programs, or by shopping at dispensaries known for lower prices. Some provinces also have medical cannabis programs that offer reduced prices for qualifying patients.
What should consumers look for when purchasing discounted cannabis?
When shopping for lower-priced cannabis, consumers should prioritize quality assurance, lab testing results, reputable brands, and dispensaries with positive customer reviews to ensure they receive safe and effective products.
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