The prices of cannabis are on the rise. As we move through 2024, the supply of weed flower is tightening further as numerous cultivation operations either cut back or halt production due to escalating losses. This decline in supply is likely to push prices even higher. Elevated prices are deterring some consumers from making purchases, which is subsequently increasing the demand for weed in various regions.
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Key Takeaways:
- As of October 2023, the average price of dried weed flower stood at $1.10 per gram, reflecting a 6.8% increase from the September average of $1.03 per gram.
- The cost of recently harvested flower with over 20% THC surged from $1.04 per gram at the end of last year to $1.32 per gram by April, indicating a 27% overall increase.
- With rising weed flower prices, consumers are seeking more affordable alternatives, such as lower THC flower, online dispensaries for better deals, or other products.
Canadian Weed Market General Trends
A report from Brightfield Group, based in Chicago, anticipates that Green Leaf Express Canada’s weed market will double over the next five years. The report highlights that expanding retail outlets and relaxing regulations will drive this growth.
Brightfield Group predicts that Canada’s weed market will experience a 10% annual growth rate, reaching $8.8 billion within five years. This surge will be primarily fueled by increased weed sales and vape product demand.
Bethany Gomez, managing director of Brightfield Group, noted that despite robust market growth in 2021, there remains substantial potential for further expansion, particularly with enhanced retail access.
Overview of the Flower Market in a Canadian Weed Store
Even with the projected rise in weed sales, challenges persist in the weed flower market. While weed flower remains a leading sales category, its dominance is gradually waning as other categories gain popularity. Wholesale prices have remained fairly stable, although some provinces are witnessing unexpected price hikes.
The average price for dried weed flower in October 2023, based on recent data, was $1.10 per gram, marking a 6.8% increase from the September average of $1.03 per gram. Year-over-year price comparisons reveal even more substantial changes.
Provinces Experiencing Price Hikes per THC Level on Newly Harvested Flower
The pricing of flowers in Canada varies significantly between newly harvested and aged options. Recently harvested flowers are selling faster, with the average age of these harvests dropping to a low of 65 days in April. In contrast, the average price for aged flowers has remained stagnant at $0.69 per gram in April, reflecting 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: Sold 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: Averaged $0.95 per gram, marking an 11.2% decrease from the March average of $1.07 per gram. The weed Commodity Exchange (CCX) has forecasted a recovery in May, with prices expected to rise by 12.6% to $1.07 per gram.
- 15-20% THC: Averaged $0.69 per gram in April, a 23.3% decline from the March average of $0.90 per gram. Nevertheless, CCX anticipates a recovery for 15-20% THC in May, projecting a 13.0% increase to $0.78 per gram.
Factors Influencing Price Hikes
As the weed market continues to grow in 2024, several factors contribute to fluctuations in weed flower prices, intertwining market dynamics with regulatory environments.
Supply and Demand
The yields from cultivation significantly affect the amount of weed available in the market, which can fluctuate based on weather, pests, and diseases. Seasonal variations also influence production levels, with outdoor cannabis cultivation peaking during late summer and early fall, resulting in an influx of supply that can lower prices.
Consumer preferences are subject to change due to trends, disposable income variations, and evolving perceptions of cannabis. An uptick in demand for weed products can drive prices up, especially if supply cannot keep pace. Conversely, a drop in demand—potentially due to economic downturns or shifts towards alternative products—can lead to price reductions.
Product Diversification
The weed market has experienced significant diversification, with consumers increasingly interested in a variety of products beyond traditional recreational cannabis flower. These include edibles, vape pens, pre-rolls, tinctures, and concentrates like live resin, which can influence flower prices due to increased demand.
Technological Integration
The emergence of online shopping platforms for weed products has simplified the purchasing process, enabling consumers to buy various weed products conveniently. This ease of access can boost consumption and subsequently affect wholesale demand and prices.
Delivery services have also gained traction, allowing customers to receive their weed products directly at home. The convenience of delivery can enhance demand, especially in areas where physical dispensaries are less accessible, influencing prices by increasing overall market demand.
Price Hike Demands for Discounted Cannabis; Customers Order Online
With the rise in weed flower costs, consumers are actively seeking more affordable options. This includes purchasing flowers with lower THC levels, exploring online dispensaries beyond their region for cheaper choices, or opting for alternative products.
Online weed shops present a range of THC flower at varying price points per gram. With a broader customer base, online dispensaries tend to offer lower prices than physical stores, often providing weekly sales to give customers alternatives amid rising prices for traditional weed flowers.
Below is a list of weed buds available at discounted prices at Green Leaf Express Canada. Enjoy $99 for an ounce or 28.35 grams.
Conclusion
Experts forecast continued expansion in the weed market, with annual sales on the rise. Despite the growing demand, high-quality weed flower, particularly hybrid strains, is becoming increasingly expensive. Various factors contribute to these price elevations, prompting customers to seek the best deals or explore alternative products like vape carts. Online dispensaries offer discounted prices on weed flower, enabling customers to fulfill their needs without compromising quality or resorting to undesired products.
Frequently Asked Questions
Are there any benefits to the price increase for consumers?
While higher weed prices can impose a financial burden on consumers, there are notable advantages:
- Improved Product Quality: Increased prices allow producers to invest more in cultivation and quality control, leading to better, safer, and more consistent weed products.
- Enhanced Regulation: Rising prices may indicate stronger regulatory oversight, ensuring that products meet safety and quality standards and protecting consumers from substandard goods.
- Economic Benefits: Price increases can boost state revenues through higher taxes, allowing reinvestment in public services while fostering local weed business growth, job creation, and community economic development.
How can consumers find discounted weed amid the price increase?
Consumers can discover lower weed prices through promotional sales, bulk purchases, loyalty programs, or by shopping at dispensaries known for offering lower prices. Some provinces also have medical weed programs that provide lower prices for qualifying patients.
What should consumers consider when purchasing discounted cannabis?
When looking for lower weed prices, consumers should prioritize quality assurance, lab testing results, reputable brands, and dispensaries with positive customer reviews to guarantee safe and effective products.
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