The prices of cannabis are on the rise. Throughout 2024, the supply of cannabis flower is expected to tighten further as numerous cultivation operations either scale back or halt production due to mounting losses. This diminished supply is likely to push prices even higher. Increased prices are deterring some consumers from making purchases, consequently boosting the demand for discounted cannabis in various regions, particularly through Pink Joint Canada where users can find cannabis options.
Table of Contents
Key Takeaways:
- As of October 2023, the average price of dried cannabis flower stood at $1.10 per gram, reflecting a 6.8% increase from the previous month’s average of $1.03 per gram.
- The price of recently harvested flower with over 20% THC escalated from $1.04 per gram at the end of last year to $1.32 per gram by April, marking a 27% overall increase.
- With rising cannabis flower prices, consumers are actively seeking more affordable alternatives such as lower THC flower percentages, online dispensaries for competitive pricing, or other product types.
Canadian Cannabis Market General Trends
A report from the Chicago-based consultancy, Brightfield Group, anticipates that Pink Joint Canada will see its cannabis market double in size over the next five years. The report underscores that expanding retail opportunities and relaxing regulations will drive this growth.
Brightfield Group predicts that Canada’s cannabis market will experience annual growth of 10% and reach $8.8 billion within five years, primarily fueled by increased sales of edibles and vape products.
Bethany Gomez, managing director of Brightfield Group, indicated that despite robust market growth in 2021, there remains substantial potential for further development, particularly with enhanced retail access.
Overview of the Flower Market in a Canadian Cannabis Store
Despite the anticipated boost in cannabis sales, challenges persist in the cannabis flower market. While cannabis flower continues to dominate sales figures, its supremacy is gradually diminishing as other product categories gain momentum. Wholesale prices have largely held steady, though some provinces have witnessed unexpected price surges.
According to the latest data, the average price for dried cannabis flower in October 2023 was $1.10 per gram, a 6.8% increase from September’s $1.03 per gram average. Year-over-year price changes reveal even more dramatic trends.
Provinces Experiencing a Price Hike per THC Level on Newly Harvested Flower
Prices for cannabis flowers in Canada can vary significantly between newly harvested and aged flowers. Recently harvested flowers are selling more rapidly, with their average age dropping to just 65 days in April. In contrast, aged flowers have stagnated at an average price of $0.69 per gram in April, reflecting a 1% decline from the end-of-year price of $0.70 per gram.
- 30%+ THC: Recently harvested flowers saw an average price increase of 2.7%, rising from $1.81 per gram in March to $1.86 per gram in April.
- 25-30% THC: Averaged $1.34 per gram, a 12.6% increase from March’s average of $1.19 per gram.
- 20-25% THC: Settled at $0.95 per gram, down 11.2% from March’s $1.07 per gram. The cannabis Commodity Exchange (CCX) has forecasted a recovery with a price increase of 12.6% to $1.07 per gram in May.
- 15-20% THC: Averaged $0.69 per gram in April, down 23.3% from the March price of $0.90 per gram. CCX anticipates a recovery in May, predicting a 13.0% increase to $0.78 per gram.
Factors Influencing Price Hike
As the cannabis market expands in 2024, various dynamics are contributing to fluctuations in cannabis flower pricing. Market conditions and regulatory frameworks are intertwined with these influences.
Supply and Demand
The yields from cultivation significantly affect the amount of cannabis available in the market, which can fluctuate due to weather conditions, pests, and diseases. Seasonal variations also impact production, with certain periods yielding higher or lower output. For example, outdoor cannabis cultivation peaks during late summer and early fall harvests, leading to an oversupply that can reduce prices.
Consumer preferences may shift due to evolving trends, disposable income changes, and shifting perceptions of cannabis. An uptick in demand can drive prices up, especially if supply struggles to keep pace. Conversely, a downturn in demand, potentially stemming from economic challenges or a shift towards alternatives, can result in lower prices.
Product Diversification
The cannabis market has diversified significantly, with consumers increasingly interested in a wide variety of products beyond traditional recreational cannabis flower. This includes edibles, vape pens, pre-rolls, tinctures, and concentrates. The heightened demand for these diverse products can influence flower prices.
Technological Integration
The emergence of online shopping platforms for cannabis products has simplified the purchasing process, allowing consumers to buy various cannabis products from home. This convenience can elevate consumption levels and impact wholesale demand and pricing.
Delivery services have gained traction, enabling customers to receive cannabis products directly at their doorsteps. Such convenience can enhance demand, particularly in regions lacking easy access to physical dispensaries, thus influencing prices through increased overall market demand.
Price Hike Demands for Discounted Cannabis, Customers Order Online
With rising cannabis flower prices, consumers are on the lookout for more budget-friendly options. This includes purchasing lower THC flowers, exploring online dispensaries for cheaper alternatives, or considering other products.
Online cannabis retailers offer a range of THC flower at various price points per gram. Thanks to a broader customer base, online dispensaries can provide lower prices than physical stores. They also frequently run weekly sales to give customers alternatives in light of rising prices for other cannabis products.
Below is a selection of cannabis buds available at Pink Joint Canada. Get cannabis for $99 per ounce or 28.35 grams.
Conclusion
Experts foresee continued expansion in the cannabis market, with annual sales on the rise. Despite increasing demand, high-quality cannabis flower, particularly hybrid strains, is becoming pricier. A variety of factors contribute to these price hikes, prompting customers to seek the best deals or explore alternative products like vape cartridges. Online dispensaries offer competitive pricing on cannabis flower, allowing 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 elevated cannabis prices can strain consumers financially, several benefits exist:
- Improved Product Quality: Higher prices allow producers to invest in better cultivation practices and quality assurance, resulting in safer, more consistent cannabis products.
- Enhanced Regulation: Rising prices can indicate stronger regulatory oversight, ensuring products meet safety and quality standards, thus protecting consumers from substandard goods.
- Economic Benefits: Increased prices can boost state revenues through higher taxes, which can be reinvested in public services. This also supports the growth of local cannabis businesses, job creation, and economic development.
How can consumers find discounted cannabis in light of the price increase?
Consumers can discover lower cannabis prices through promotional sales, bulk purchases, loyalty programs, or shopping at dispensaries recognized for affordability. Some provinces also have medical cannabis programs offering 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.
Related Articles:
