The prices of cannabis are on the rise. Throughout 2024, the availability of cannabis flower is tightening as many cultivation operations at Weedsy Canada reduce or halt production due to increasing losses. This diminished supply is likely to push prices even higher. The escalating costs are deterring some consumers from buying, which simultaneously amplifies the demand for cannabis in various regions.
Key Insights:
- In October 2023, the average price of dried cannabis flower was $1.10 per gram, reflecting a 6.8% increase from September’s average of $1.03 per gram.
- The cost of recently harvested flower with over 20% THC increased from $1.04 per gram at the end of last year to $1.32 per gram by April, marking a 27% rise overall.
- With rising prices of cannabis flower, consumers are turning to more economical options such as lower THC flower percentages, online dispensaries for better deals, or alternative products.
General Trends in the Canadian Cannabis Market
A report by Brightfield Group anticipates that Canada’s cannabis market will double in size over the next five years. The report highlights that the expansion of retail stores and relaxed regulations will drive this growth.
Brightfield Group predicts that Canada’s cannabis market will grow at an annual rate of 10%, reaching $8.8 billion in five years. This growth will primarily be fueled by increasing cannabis sales and vape products.
Bethany Gomez, managing director of Brightfield Group, stated that despite the robust market growth in 2021, there remains significant potential for further expansion, especially with enhanced retail access.
Yearly Forecast Sales:
| Year | Projected 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 increase in cannabis sales, challenges persist in the cannabis flower market. While cannabis flower remains the leading sales category, its dominance is gradually waning as other product categories gain popularity. Wholesale prices have remained relatively stable, although some provinces are facing unexpected price increases.
The average price for dried cannabis flower in October 2023 was $1.10 per gram. This represents a 6.8% increase from the September average of $1.03 per gram. Year-over-year price variations are even more pronounced.
Provinces Experiencing Price Increases per THC Level on Newly Harvested Flower
The pricing of cannabis flowers in Canada varies between newly harvested and aged flower. Recently harvested flowers have been selling at a quicker pace, with their average age dropping to just 65 days in April. The average price for aged flowers has largely stabilized 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: Settled at $0.95 per gram, an 11.2% decrease from the March average of $1.07 per gram. The cannabis Commodity Exchange (CCX) expects a rebound in May, anticipating prices 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, reflecting a 23.3% drop from the March price of $0.90 per gram. Despite this, CCX forecasts that the 15-20% THC category will recover in May, with an expected 13.0% increase to $0.78 per gram.
Factors Driving Price Increases
As the cannabis market continues to grow in 2024, various elements contribute to fluctuations in cannabis flower prices. Market dynamics intertwine with regulatory conditions.
Supply and Demand
Crop yields significantly impact the amount of cannabis available in the marketplace, which can fluctuate due to factors like weather, pests, and diseases. Seasonal variations also affect production levels. For instance, outdoor cannabis cultivation peaks during late summer and early fall harvest times, leading to a supply influx that can lower prices.
Consumer preferences can shift due to trends, changes in disposable income, and evolving views on cannabis. An uptick in demand for cannabis products can elevate prices, particularly if supply cannot keep pace. Conversely, a drop in demand, possibly due to economic downturns or shifts towards alternative products, can lead to price reductions.
Product Diversification
The cannabis market has diversified significantly, with consumers interested in a wide range of products beyond traditional cannabis flower. These offerings include edibles, vape pens, pre-rolls, tinctures, and concentrates like live resin. This rising demand for diverse products can influence flower prices.
Technological Integration
The emergence of online shopping platforms for cannabis products has facilitated easier consumer access to diverse cannabis options from home. This convenience can boost consumption and impact wholesale demand and prices.
Delivery services have also gained traction, allowing customers to receive cannabis products right at their doorsteps. The convenience of delivery services can enhance demand, especially in regions with limited physical dispensaries, thereby affecting prices by raising overall market demand.
The Rising Cost of Cannabis Encourages Demand for Discounted Products; Customers Order Online
As cannabis flower prices increase, consumers are actively seeking more affordable alternatives. This includes purchasing flowers with lower THC levels, exploring online dispensaries outside their regions for cheaper options, or opting for alternative products.
Online cannabis shops provide various THC flowers at different price points per gram. Due to a broader customer base, online dispensaries often offer lower prices than physical stores, along with weekly promotions to help customers manage the rising costs.
Here is a selection of cannabis buds available at Weedsy Canada. Get them for just $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 project that the cannabis market will continue its expansion, with annual sales set to rise. Despite the increasing demand, high-quality cannabis flower, such as hybrid strains, is becoming more costly. Various factors contribute to these price hikes, prompting customers to seek the best deals or consider alternative products like vape cartridges. Online dispensaries provide discounted prices on cannabis flower, ensuring that customers can satisfy their needs without compromising quality or settling for less desirable products.
Frequently Asked Questions
Are there any benefits to the price increase for consumers?
Higher cannabis prices may impose a financial burden on consumers; however, notable benefits include:
- Improved Product Quality: Higher prices allow producers to invest more in cultivation practices and quality control, resulting in better, safer, and more consistent cannabis products.
- Enhanced Regulation: Increased prices can indicate stronger regulatory oversight, ensuring that products meet safety and quality standards while protecting consumers from potentially harmful goods.
- Economic Benefits: Rising prices can enhance state revenues through higher taxes, which can be reinvested into public services. It also supports the growth of local cannabis businesses, job creation, and economic development within communities.
How can consumers find discounted cannabis amidst the price increases?
Consumers can discover lower cannabis prices through sales promotions, bulk purchasing, loyalty programs, or by shopping at dispensaries known for their reasonable prices. Some provinces also offer medical cannabis programs with reduced prices for eligible patients.
What should consumers consider when buying discounted cannabis?
When looking for lower cannabis prices, consumers should prioritize quality assurance, lab testing results, reputable brands, and dispensaries with positive customer reviews to ensure they are purchasing safe and effective products.
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