Prices for cannabis are on the rise. Throughout 2024, the supply of cannabis flower is tightening as many cultivation operations reduce or stop production due to increasing losses. This decline in supply is expected to push prices even higher. The escalating prices are discouraging some consumers from making purchases, leading to a spike in demand for discounted cannabis in various areas, especially through Weed Deals Canada.
The average price for dried cannabis flower in October 2023 was $1.10 per gram, reflecting a 6.8% increase from September’s average of $1.03 per gram. The price for recently harvested flower containing over 20% THC surged from $1.04 per gram at the end of the previous year to $1.32 per gram by April, marking a 27% overall increase. As cannabis flower prices rise, consumers are seeking more affordable options, such as lower THC flower percentages or online dispensaries, including Weed Deals Canada, for better pricing.
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Key Takeaways:
- The cannabis market in Canada is projected to double over the next five years, according to a report by the Brightfield Group. This growth is attributed to the opening of more retail stores and relaxed regulations.
- Brightfield Group forecasts that Canada’s cannabis market will expand at a yearly 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, stated that despite robust market growth in 2021, there remains significant room for expansion, particularly with enhanced retail access.
Overview of the Flower Market in A Canadian Cannabis Store
Even with anticipated increases in cannabis sales, challenges persist in the market for cannabis flower. Although cannabis flower still accounts for the majority of market sales, its dominance is gradually declining as other product categories gain popularity. Wholesale prices have remained mostly stable, with unexpected price hikes in some provinces.
In October 2023, the average price of dried cannabis flower stood at $1.10 per gram, which is a 6.8% rise from September’s average of $1.03 per gram. Year-over-year price changes are even more pronounced.
Provinces Experiencing a Price Hike per THC Level on Newly Harvested Flower
The price of cannabis flowers in Canada varies between new and aged products. Recently harvested flowers are selling more rapidly, with the average age of these harvests dropping to a low of 65 days in April. Conversely, the average price for aged flowers has remained relatively unchanged, settling at $0.69 per gram in April, reflecting a 1% drop 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: The weighted average price was $1.34 per gram, a 12.6% increase from the March price of $1.19 per gram.
- 20-25% THC: The average price settled at $0.95 per gram, an 11.2% decline from the March average price of $1.07 per gram. The cannabis Commodity Exchange (CCX) forecasts a recovery in May, with prices expected to rise by 12.6% to $1.07 per gram.
- 15-20% THC: The average price was $0.69 per gram in April, a 23.3% decrease from the March price of $0.90 per gram. CCX predicts a recovery for this category in May, with a projected increase of 13.0% to $0.78 per gram.
Factors Influencing Price Hike
As the cannabis market grows in 2024, several factors contribute to fluctuations in cannabis flower prices. Market dynamics and regulatory frameworks interact with these influences.
Supply and Demand
The yields from cultivation significantly affect the quantity of cannabis available on the market, which can vary due to factors like weather, pests, and diseases. Seasonal changes also impact production levels, with outdoor cannabis cultivation peaking during the late summer and early fall harvest, leading to increased supply and potentially lower prices.
Shifts in consumer preferences can arise from trends, disposable income fluctuations, and evolving attitudes towards cannabis. An uptick in demand for cannabis products can elevate prices, particularly if supply can’t keep pace. Conversely, a decline in demand, possibly due to economic downturns or shifts toward alternative products, may result in lower prices.
Product Diversification
The cannabis market has diversified significantly, with consumers expressing interest in a variety of products beyond traditional recreational cannabis flower. These include edibles, vape pens, pre-rolls, tinctures, and concentrates. Increased demand for these diverse products can impact flower prices accordingly.
Technological Integration
The emergence of online shopping platforms for cannabis products has enhanced consumer access to a wide array of cannabis offerings from home. This convenience can result in increased consumption and impact wholesale demand and prices.
Delivery services have also gained traction, allowing customers to receive cannabis products directly at home. This convenience can heighten demand, especially in areas with limited access to physical dispensaries, thus influencing prices by boosting overall market demand.
Price Hike Demands for Discounted Cannabis, Customers Order Online
With rising cannabis flower costs, consumers are increasingly seeking more affordable alternatives. This includes purchasing lower THC flower, exploring online dispensaries for better prices, or choosing alternative products.
Weed Deals Canada provides a variety of THC flower at different price points per gram. Due to a wider customer reach, online dispensaries can offer lower prices compared to physical stores and provide weekly sales to help offset price hikes.
Here’s a selection of cannabis buds available at Weed Deals Canada for $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 anticipate continued expansion in the cannabis market, with annual sales on the rise. Despite increasing demand, high-quality cannabis flower, especially hybrid strains, is becoming more costly. 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 Weed Deals Canada, offer discounted prices on cannabis flower, enabling customers to meet their needs without compromising quality or settling for inferior products.
Frequently Asked Questions
Are there any benefits to the price increase for consumers?
While higher cannabis prices can pose financial challenges for consumers, there are notable advantages:
- Improved Product Quality: Increased prices allow producers to invest more in cultivation and quality control, resulting in better, safer, and more consistent cannabis products.
- Enhanced Regulation: Rising prices may signal stronger regulatory oversight, ensuring products meet safety standards and protecting consumers from potentially harmful goods.
- Economic Benefits: Price increases can boost state revenues through higher taxes, which can be reinvested in public services, fostering local cannabis business growth and job creation.
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 pricing. Some provinces also have medical cannabis programs that offer lower prices for eligible 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 the safety and effectiveness of the products.
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