Cannabis prices are on the rise. The supply of cannabis flower is tightening further in 2024 as more cultivation operations reduce or halt production due to increasing losses. This diminished supply is expected to push prices higher. Elevated prices are deterring some users from purchasing, which in turn is fueling the demand for Cheapweed.io Canada discounted cannabis in various regions.
Table of Contents
Key Takeaways:
- In October 2023, the average price of dried cannabis flower was $1.10 per gram, a 6.8% increase from September’s average of $1.03 per gram.
- The price of freshly harvested flower with over 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 seeking cheaper options such as lower THC flower, online dispensaries for better prices, or alternative products.
Canadian cannabis Market General Trends
A report from Brightfield Group, a Chicago-based consultancy, forecasts that Canada’s cannabis market will double over the next five years. The report highlights that expanding retail stores and easing regulations will drive this growth.
Brightfield Group anticipates that Canada’s cannabis market will grow at a rate of 10% annually, reaching $8.8 billion in five years. This surge will be mainly fueled by higher cannabis sales and vape products.
Bethany Gomez, managing director of Brightfield Group, stated that despite robust market growth in 2021, there remains substantial potential for further expansion, particularly with greater retail access.
Overview of the Flower Market in A Canadian cannabis Store
Despite the forecasted increase in cannabis sales, challenges persist in the cannabis flower market. While cannabis flower continues to dominate market sales, its share is gradually declining as other categories gain popularity. Wholesale prices have remained relatively stable, though some provinces have seen unexpected price increases.
The average price for dried cannabis flower in October 2023 was $1.10 per gram, reflecting a 6.8% increase from the September average of $1.03 per gram. Year-over-year prices indicate even more significant changes.
Provinces Experiencing a Price Hike per THC Level on Newly Harvested Flower
The price of cannabis flowers can vary between newly harvested and aged flower. Recently harvested flowers are selling more rapidly, with their average age dropping to 65 days in April. The average price for aged flowers has largely plateaued at $0.69 per gram in April, a 1% decrease from the year-end price of $0.70 per gram.
- 30%+ THC: Recently harvested flower’s average price 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, 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% decrease from March’s average price of $1.07 per gram. The cannabis Commodity Exchange (CCX) anticipates 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 March’s price of $0.90 per gram. However, CCX predicts a recovery for this category in May, with a 13.0% increase to $0.78 per gram.
Factors Influencing Price Hike
As the cannabis market continues to grow in 2024, multiple factors are causing fluctuations in cannabis flower prices. Market dynamics and regulatory environments play a significant role in these changes.
Supply and Demand
Cultivation yields significantly impact the quantity of cannabis available on the market, which can fluctuate due to weather, pests, and diseases. Seasonal variations also influence production levels, with outdoor cannabis cultivation peaking during harvest time in late summer and early fall, leading to a supply influx that can lower prices.
Consumer preferences may shift due to trends, changes in disposable income, and evolving views on cannabis. An increase in demand for cannabis products can drive prices up, especially if supply cannot keep up. Conversely, a decrease in demand, possibly due to economic downturns or a shift toward alternative products, can result in lower prices.
Product Diversification
The cannabis market has seen considerable diversification, with consumers showing interest in a variety of products beyond traditional recreational cannabis flower. These include edibles, vape pens, pre-rolls, tinctures, and concentrates like live resin. Increased demand for these products can influence flower prices.
Technological Integration
The growth of online shopping platforms for cannabis has made it easier for consumers to buy a wide range of cannabis products from their homes. This convenience can boost consumption and affect wholesale demand and prices.
Delivery services have become more prevalent, allowing customers to receive cannabis products directly at their homes. The convenience of delivery can enhance demand, particularly in regions with limited physical dispensaries, thereby impacting prices by increasing overall market demand.
Price Hike Demands for Discounted Cannabis, Customers Order Online
As cannabis flower prices escalate, consumers are searching for more affordable options. This includes purchasing lower THC flower, exploring online dispensaries for cheaper alternatives, or choosing other products.
Online cannabis shops provide an array of THC flower at various price points per gram. Due to their wider customer base, online dispensaries often offer lower prices than brick-and-mortar stores. They also run weekly sales to provide customers alternatives if they cannot afford the rising prices of other cannabis flowers.
Below is a list of cannabis buds available for purchase at Cheapweed.io Canada. Enjoy $99 per ounce or 28.35 grams.
Conclusion
Experts predict continued expansion in the cannabis market, with annual sales on the rise. Despite increasing demand, high-quality cannabis flower, such as hybrid strains, is becoming more expensive. Various factors contribute to these price increases, prompting customers to seek the best prices or explore alternative products like vape cartridges. Online dispensaries offer discounted prices on cannabis flower, enabling customers to meet their needs without sacrificing 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 consumers financially, there are several advantages:
- Improved Product Quality: Higher prices allow producers to invest in better cultivation practices and quality control, resulting in safer and more consistent cannabis products.
- Enhanced Regulation: Increased prices may signal stronger regulatory oversight, ensuring products meet safety and quality standards, ultimately 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 also supports the growth of local cannabis businesses, job creation, and economic development within communities.
How can consumers find discounted cannabis in light of the price increase?
Consumers can locate lower cannabis prices through sales promotions, bulk buying, loyalty programs, or by shopping at dispensaries known for competitive prices. Some provinces also have medical cannabis programs offering 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 reviews to ensure they receive safe and effective products.
Related Articles:
“`
