Prices for cannabis are on the rise. The availability of cannabis flower is becoming increasingly limited in 2024 as many cultivation operations are either scaling back or halting production due to rising losses. This decrease in supply is expected to push prices even higher. Some consumers are deterred by the escalating costs, leading to greater demand for HighGradeAid Canada’s discounted cannabis in various areas.
In 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 for freshly harvested flower with over 20% THC surged from $1.04 per gram at the end of the previous year to $1.32 per gram by April, representing a 27% increase overall. As cannabis flower prices climb, consumers are looking for cheaper alternatives such as lower THC flower, online dispensaries for better deals, or different products.
Table of Contents
Key Takeaways:
- As of October 2023, the average price for dried cannabis flower was $1.10 per gram, up 6.8% from September’s average of $1.03 per gram.
- The price of newly harvested flower with 20%+ THC rose from $1.04 per gram at the end of last year to $1.32 per gram by April, a 27% increase overall.
- As cannabis flower prices increase, consumers seek more affordable options like lower THC percentages, online dispensaries for better pricing, or alternative products.
Canadian Cannabis Market General Trends
A report from Brightfield Group, a Chicago-based consultancy, projects that Canada’s cannabis market will double in size over the next five years. The report highlights that an increase in retail stores and relaxed regulations will drive this growth.
Brightfield Group anticipates that Canada’s cannabis market will grow at a yearly rate of 10%, reaching $8.8 billion in five years. This growth will largely stem from heightened sales of edibles and vape products.
Bethany Gomez, managing director of Brightfield Group, stated that despite strong market growth in 2021, considerable potential for further expansion remains, particularly with greater 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 expected rise in cannabis sales, challenges persist in the cannabis flower market. Cannabis flower remains the leading product in sales, although its market share is gradually shrinking as other categories gain popularity. Wholesale prices have remained relatively stable, with some provinces experiencing unexpected price hikes.
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 comparisons show even more substantial changes.
Provinces Experiencing a Price Hike per THC Level on Newly Harvested Flower
Prices for cannabis flowers in Canada can vary between newly harvested and aged products. Recently harvested flowers are selling at a quicker pace, with the average age of these harvests dropping to just 65 days in April. The average price for aged flowers has largely stagnated at $0.69 per gram in April, 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: The weighted average price was $1.34 per gram, a 12.6% rise from the March price of $1.19 per gram.
- 20-25% THC: Settled at $0.95 per gram, an 11.2% decline from March’s average of $1.07 per gram. The cannabis Commodity Exchange (CCX) predicts 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% drop from March’s price of $0.90 per gram. Despite this, CCX expects 15-20% THC to recover in May, with a projected increase of 13.0% to $0.78 per gram.
| THC Level | British Columbia | Alberta | Ontario | Quebec | Rest of Canada |
|---|---|---|---|---|---|
| 30%+ | $1.48 | $1.56 | $1.63 | $1.95 | $2.23 |
| 25%-30% | $1.27 | $1.30 | $1.08 | $1.19 | $0.88 |
| 20%-25% | $1.09 | $0.99 | $0.98 | $0.70 | $0.67 |
| 20%-15% | – | $1.00 | $0.78 | $0.46 | $0.67 |
Factors Influencing Price Hike
As the cannabis market continues to grow in 2024, various factors are causing fluctuations in cannabis flower prices. Market dynamics and regulatory environments are closely interlinked with these factors.
Supply and Demand
Yields from cultivation greatly affect the quantity of cannabis available in the market, influenced by weather, pests, and diseases. Seasonal fluctuations also play a role, with some periods yielding higher or lower production levels. For instance, outdoor cannabis cultivation peaks during the late summer and early fall harvest times, leading to a supply influx that can reduce prices.
Consumer preferences may shift based on trends, disposable income changes, and evolving views on cannabis. Increased demand for cannabis can lead to price hikes, particularly if supply cannot keep up. Conversely, a decrease in demand due to economic challenges or preference shifts towards alternative products can result in lower prices.
Product Diversification
The cannabis sector has seen significant diversification, with consumers showing interest in a wide array of products beyond traditional recreational cannabis flower. These products encompass edibles, vape pens, pre-rolls, tinctures, and concentrates like live resin. The growing demand for such varied products can influence flower prices.
Technological Integration
The emergence of online shopping platforms for cannabis products has simplified the purchasing process for consumers, allowing them to buy a vast assortment of cannabis products from home. This ease of access can enhance consumption and affect wholesale demand and pricing.
Delivery services have also gained traction, enabling customers to receive cannabis products at their doorsteps. The convenience of delivery services can boost demand, particularly in areas with limited access to physical dispensaries, thereby impacting prices by increasing overall market demand.
Price Hike Demands for Discounted Cannabis, Customers Order Online
As the cost of cannabis flower rises, consumers are in search of more affordable options. This includes purchasing lower THC flower, exploring online dispensaries beyond their local area for cheaper alternatives, or choosing other products.
Online cannabis shops provide a range of THC flower at various price points per gram. With a wider customer base, online dispensaries can offer lower prices compared to brick-and-mortar stores. They also run weekly promotions, providing customers with alternatives when faced with price increases on other cannabis flowers.
Below is a list of cannabis buds available at HighGradeAid Canada. Get $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 growth in the cannabis market, with annual sales on the rise. Despite increasing demand, high-quality cannabis flower, particularly hybrid strains, is becoming more expensive. Several factors contribute to these price hikes, prompting customers to seek the best deals or explore alternative products like vape cartridges. Online dispensaries provide discounted prices on cannabis flower, allowing customers to fulfill 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 may create financial strain, there are significant benefits:
- Improved Product Quality: Increased prices allow producers to invest more in cultivation practices and quality control, resulting in better, safer, and more consistent cannabis products.
- Enhanced Regulation: Rising prices can indicate stronger regulatory oversight, ensuring products meet safety and quality standards, thus protecting consumers from potentially harmful or inferior goods.
- Economic Benefits: Higher prices can boost state revenues through elevated taxes, which can be reinvested in public services. This also promotes the growth of local cannabis businesses, job creation, and community development.
How can consumers find discounted cannabis in light of the price increase?
Consumers can locate lower cannabis prices through promotions, bulk buying, loyalty programs, or by visiting dispensaries known for competitive pricing. Some provinces also offer medical cannabis programs that provide lower 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 are obtaining safe and effective products.
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