The development of cannabis markets in regions such as Canada has not met expectations. Predictions made by prominent companies and venture capitalists significantly surpassed the actual market demand.
Currently, major production facilities are shutting down, substantial quantities of dried flower are left unsold, and the illegal market continues to dominate approximately 80% of the estimated $8 billion industry in Canada.
In spite of these obstacles, innovative business models are surfacing. Entrepreneurs are increasingly choosing smaller micro-cultivation setups for producing premium craft cannabis strains to lower expenses and enhance the quality of marijuana. This transition might assist in alleviating the industry’s oversupply issue, as micro-cultivation operates on a reduced scale.
To enjoy the finest quality cannabis, you can now “Buy Craft cannabis Canada.”
Table of Contents
Canadian cannabis Market
While large facilities like Canopy’s are closing, smaller, boutique-style cultivation operations are emerging as the future of the industry. According to Althing Consulting, these 20,000-square-foot facilities are replacing the larger operations.
Consumers are gravitating towards small-scale producers for their premium quality craft cannabis. Prices are also decreasing. This trend is consistent with patterns observed in other global marketing efforts.
By the close of 2022, Canada’s indoor cultivation area had diminished by 28% from its peak in 2020. The federal government issued only 58 standard cultivation licenses in 2022, marking the lowest number since 2018.
Unlike standard licenses which have no size restrictions, micro-class permits limit cultivation to 200 square meters (2,150 square feet). In 2022, 130 new micro licenses were issued, surpassing standard licenses for the second consecutive year. In 2021, there were 106 standard licenses compared to 134 micro licenses.
Micro vs. Standard cannabis Cultivation Licenses in Canada
The peak number of new standard cannabis cultivation licenses in Canada occurred in 2020, amid overproduction and waste of unsold products.
Note: Micro licensees are confined to 200 square meters of growing space, while standard licensees face no such limitations.
Growing Interest in Craft Strains
Consumers are balancing price sensitivity with a desire for the highest-quality products available to them. This has led many to favor micro-cultivators.
Micro-cultivators can produce high-THC, premium products more easily and reliably than larger growers operating under standard licenses, typically utilized for larger, more value-oriented production. Smaller production methods usually yield better-quality strains.
The trend toward premium and high-potency products has proven financially beneficial, with higher costs necessitating increased production to realize a return on investment. Similar to the wine industry, some consumers prefer authentic products typically found at micro-licensed facilities.
Large companies with standard licenses, such as Canopy Growth and Indiva, are increasingly collaborating with micro-license holders. This strategy enables large licensed producers to efficiently and cost-effectively bring the best craft cannabis products to market by outsourcing cultivation to micro-cultivators.
Growing Micro-Weed Producers in Canada
The primary factor is the oversupply of strain products.
Canada is facing a significant oversupply of low-quality strains, leading to a shift towards smaller cultivation operations. As of December 2022, the national inventory of dried flowers hit a record 1.47 billion grams (3.2 million pounds), most of which is held by licensed producers. This surplus is roughly four times the amount sold at retail that year.
Despite the substantial inventory, concentrating on smaller cultivation businesses may help mitigate the supply glut. According to Health Canada, by the end of 2022, Canada’s indoor growing area had reduced by 28% from its peak in 2020.
Renovation Details
Renovations are underway at a micro-cultivation facility located at the former PPG plant in Owen Sound. The project, spearheaded by Robert Stanford, president of Micro Marketing, aims to produce high-quality products in a 40,000-square-foot space within the Peninsula Pro-Growth Business Park. The initial phase will feature four micro-cultivation units with five grow rooms designed to produce top-tier strains.
Stanford expresses enthusiasm for the project, which he believes is unprecedented in Canada. The facility will mimic the small, controlled environments characteristic of black market cultivation, but within a legal framework. Buyers can acquire a grow table for $150,000, with an anticipated annual profit of $66,000 post-expenses. Each unit is equipped with essential systems and security, with access limited to licensed individuals.
This initiative is not connected to MPX Bioceutical Corp, a previous proposal for the site. Stanford’s business model allows store operators to create their private-label products. The facility is expected to generate high-paying local jobs. Future phases may significantly expand the project, potentially accommodating the cultivation of 50 different strains.
Officials in Owen Sound have been supportive, and this venture marks Micro Marketing’s first of several planned projects across the province.
Impact on Artisanal cannabis Production
The renovation and establishment of new facilities have multiple impacts. Nowadays, consumers prefer to buy craft cannabis online rather than in commercial states. Why? Let’s explore the distinctions between the two.
FeatureArtisanal CannabisCommercial Cannabis
Definition: Small-scale, high-quality productionLarge-scale cultivation, often perceived as average or lower-quality products.
Scale of Production: Small, typically up to 200 sq metersLarge, no size limits on standard licenses.
Ownership: Usually independent, high cultivator ownershipSignificant external or investor ownership.
Automation: Limited, hands-on cultivationHigh automation for large-scale operations.
Ingredients: High-quality, traditional or innovative nutrientsMay use cost-saving substitutes.
Cultivation Practices: Focus on quality and detail, innovative approachesEfficiency-driven may prioritize yield over quality.
Product Quality: Generally higher, rich cannabinoid and terpene profilesPerceived as lower, but can still be high-quality.
Drying and Curing: Smaller batches, easier quality managementLarger batches, challenging to maintain consistency.
In summary:
- Craft Cannabis: Small-scale, high-quality production focused on traditional or innovative cultivation practices and community involvement. Often associated with premium products and higher prices.
- Commercial Cannabis: Large-scale production prioritizing efficiency and yield. Can produce high-quality products but is often perceived as lower quality due to cost-saving measures and scale.
Buy Craft cannabis Canada: Product Selection
With numerous emerging retailers and sellers of these strains, finding the best option can be daunting. But don’t worry. We’ve sorted out the best craft cannabis available online.
FeatureSupersonicPurple DragonGlitter
Flavours: Herbal, tropicalGrape, sweetLavender, sage, vanilla.
Strain Types: SativaIndicaHybrid.
THC: 21%19.5%25%.
CBD: 0.5%0.5%0.2%.
Genetics: Quantum Kush x Snow LotusPurple Urkle x Blue DragonKen’s Granddaddy Purple x Mystic Gem.
Aroma/Taste: Herbal, tropicalThe musky scent, floral tasteSweet basil, licorice.
Effect: Uplifting, energizingCerebral, relaxing, pain-relievingCreative head high, relaxing body feel.
The Key Takeaway
AAAA craft, also referred to as quality cannabis, is gaining traction in British Columbia and throughout Canada. Similar to other craft products, such as craft beer or craft coffee, it represents superior quality. Strains like Miracle Alien Cookies, Purple Dragon, and Supersonic are recognized for their beneficial mental effects.
The Canadian cannabis market is transitioning from large-scale production to smaller facilities due to challenges such as overproduction and unsold inventory. These cultivators are increasingly favored for producing high-quality products, as evidenced by the rise of micro-cultivation licenses. The industry is now focused on these small batches of strains to enhance quality and market reach.
Frequently Asked Questions
What are the Benefits of Artisanal Cannabis?
- Economic Boost: Supports small businesses, helping “mom-and-pop” shops thrive. Small batch growth often results in superior quality products, allowing these smaller businesses to compete in a crowded market.
- Eco-Friendly Practices: Various brands employ sustainable methods, growing plants in coconut husks and avoiding chemical pesticides. They customize nutrient formulations for each strain, promoting optimal growth with minimal environmental impact.
- Organic Cultivation: Organic strains are grown without harmful pesticides. They utilize innovative, responsible methods and technology to produce the highest quality while minimizing their carbon footprint.
- Outdoor Growing: The plants benefit from sunlight and fresh air, employing beneficial microbes and insects instead of chemicals to safeguard their crops. This sustainable approach is advantageous for the farm, environment, and product.
Where Does Craft cannabis Fit Into The Emerging cannabis Industry?
There is an increasing focus on sustainability and quality. Artisanal growers play a vital role in this landscape. They operate on a small scale, ensuring consistent quality and better control over production. Unlike conventional methods, this approach emphasizes sustainable practices, utilizing less water and electricity. This shift positions growers as essential contributors to addressing the industry’s demand for sustainability and top-tier quality.
What is The Future of the Artisanal cannabis Industry?
The cannabis market is poised for steady growth, as indicated by a Global Business Accelerator report. Key factors driving this growth include technological advancements and rising environmental awareness. Producers should prioritize product innovation, strategic collaborations, and expanding their market reach to remain competitive.
Related Articles:
“`
