Prices for cannabis are on the rise. The availability of cannabis flower is tightening further throughout 2024, as numerous cultivation operations either cut back or halt production amid increasing losses. This decline in supply is expected to push prices even higher. Escalating prices are deterring some consumers from making purchases, which is consequently escalating the demand for discounted cannabis in various regions, including options available at Buy My Weed Online Canada.
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Key Takeaways:
- As of October 2023, the average cost of dried cannabis flower reached $1.10 per gram, marking a 6.8% increase from September’s average of $1.03 per gram.
- The price of freshly harvested flower with over 20% THC climbed from $1.04 per gram at the end of the previous year to $1.32 per gram by April, representing a 27% overall increase.
- With rising cannabis flower prices, consumers are looking for more affordable alternatives such as lower THC flower, online dispensaries for better deals, or other product types available at Buy My Weed Online Canada.
Canadian Cannabis Market General Trends
A report by the Chicago-based industry consultancy Brightfield Group anticipates that Canada’s cannabis market will double within the next five years. The report highlights that the expansion of retail stores and easing regulations will drive this growth.
Brightfield Group estimates that Canada’s cannabis market will experience a yearly growth rate of 10%, reaching $8.8 billion in five years. This surge will be mainly propelled by increased 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 expansion, particularly with improved retail access.
| Year | Forecast Total Sales |
|---|---|
| 2020 | $3.2B |
| 2021 | $4.4B |
| 2022 | $5.5B |
| 2023 | $6.4B |
| 2024 | $7.2B |
| 2025 | $7.9B |
| 2026 | $8.5B |
| 2027 | $8.8B |
Overview of the Flower Market in a Canadian Cannabis Store
Despite the anticipated growth in cannabis sales, challenges persist in the cannabis flower market. Although cannabis flower continues to be the leading category in sales, its dominance is gradually waning as other categories gain popularity. Wholesale prices have remained relatively stable, with some provinces witnessing unexpected increases.
The average price for dried cannabis flower in October 2023 was $1.10 per gram, reflecting a 6.8% rise from the September average of $1.03 per gram. Year-over-year prices show even more significant changes.
Provinces Experiencing a Price Hike per THC Level on Newly Harvested Flower
Prices for flower in Canada can vary between newly harvested and aged flower. The recent uptick in prices has been attributed to the quicker sale of freshly harvested cannabis, with the average age of these harvests dropping to 65 days in April. Conversely, the average price for aged flowers has largely stagnated, settling at $0.69 per gram in April, which indicates a 1% decrease from the year-end price of $0.70 per gram.
- 30%+ THC: The average price for recently harvested flower rose 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 the March average 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 the March price of $0.90 per gram. However, CCX expects this category to recover in May, with a projected increase of 13.0% to $0.78 per gram.
Factors Influencing Price Hike
As the cannabis market continues to grow in 2024, several factors are causing fluctuations in cannabis flower prices. Market dynamics and regulatory environments greatly influence these changes.
Supply and Demand
The yields from cultivation significantly affect the amount of cannabis available in the market, which can fluctuate due to weather, pests, and diseases. Seasonal variations also contribute to these dynamics, with certain times of the year yielding greater or lesser production levels. For instance, outdoor cannabis cultivation peaks during the late summer and early fall harvest, leading to an influx of supply that can lower prices.
Changes in consumer preferences can arise from trends, disposable income fluctuations, and evolving views on cannabis. An increase in the demand for cannabis products can drive up prices, especially if supply cannot keep pace. Conversely, a drop in demand, possibly due to economic downturns or shifts towards alternative products, can result in lower prices.
Product Diversification
The cannabis market has experienced notable diversification, with consumers increasingly interested in a variety of products beyond traditional recreational cannabis flower. These products encompass edibles, vape pens, pre-rolls, tinctures, and concentrates like live resin. The heightened demand for these diverse offerings can also influence flower prices.
Technological Integration
The rise of online shopping platforms for cannabis products has simplified the purchasing process for consumers, allowing them to acquire a vast array of cannabis products from home. This ease of access can boost consumption and impact wholesale demand and pricing.
Delivery services have also gained prominence, providing customers with direct access to cannabis products at their doorsteps. This convenience can elevate demand, particularly in regions where physical dispensaries are less accessible, thus influencing prices through increased overall market demand.
Price Hike Demands for Discounted Cannabis, Customers Order Online
As the cost of cannabis flower escalates, consumers are actively seeking more affordable options. This includes purchasing lower THC flower, exploring online dispensaries for better prices, or considering alternative products available at Buy My Weed Online Canada.
Online cannabis retailers provide a selection of THC flower at various price points per gram. Due to a broader customer base, online dispensaries can offer lower prices compared to physical stores and often provide weekly promotions to assist customers in navigating price increases.
Below is a list of cannabis buds available at Buy My Weed Online Canada for only $99 per ounce or 28.35 grams.
| Product | Flavours | Strain Type | THC (%) | CBD (%) | Price per Ounce |
|---|---|---|---|---|---|
| Jealousy | Diesel, Earthy | Hybrid strain (Balanced) | 24 | 0.2 | $99 |
| Biscotti | Cookies, Diesel | Hybrid (Indica Dominant) | 21 | 0.4 | $95 |
| Purple Truffle | Berry, Citrus, Sweet | Hybrid (Indica-dominant) | 20% | – | $99 |
Conclusion
Experts forecast 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 pricier. Various factors contribute to these price hikes, prompting customers to seek the best deals or explore alternative products like vape cartridges. Online dispensaries, such as Buy My Weed Online Canada, provide discounted prices on cannabis flower, enabling customers to meet their needs without compromising on quality or settling for less desirable options.
Frequently Asked Questions
Are there any benefits to the price increase for consumers?
While rising cannabis prices can be a financial strain for consumers, they bring several benefits:
- 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 products meet safety and quality standards, thus protecting consumers from potentially harmful goods.
- Economic Benefits: Price increases can boost state revenues through higher taxes, which can be reinvested into public services. This also supports the growth of local cannabis businesses, job creation, and community economic development.
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 their competitive pricing. Some provinces also offer medical cannabis programs that provide lower prices for qualified 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.
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