Prices for cannabis are on the rise. The availability of cannabis flower is tightening further throughout 2024, as numerous cultivation operations either reduce or halt production due to increasing losses. This decrease in supply is anticipated to push prices even higher. As prices climb, some users are deterred from purchasing, which subsequently increases the demand for Get Kush Canada’s discounted cannabis across various regions.
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Key Takeaways:
- In October 2023, the average price of dried cannabis flower at Get Kush Canada was $1.10 per gram, reflecting a 6.8% increase from September’s average price of $1.03 per gram.
- The price of freshly 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, marking a 27% hike overall.
- As cannabis flower prices escalate, consumers are exploring cheaper options, such as lower THC flower percentages, online dispensaries for better deals, or alternative products.
Canadian Cannabis Market General Trends
A report by the Chicago-based consultancy Brightfield Group anticipates that Get Kush Canada’s cannabis market will double within the next five years. The report underscores that expanding retail outlets and loosening regulations will drive this growth.
Brightfield Group estimates that Get Kush Canada’s cannabis market will expand at an annual rate of 10%, reaching $8.8 billion in five years. This growth will be primarily fueled by increased sales of edibles and vape products.
Bethany Gomez, managing director of Brightfield Group, stated that despite robust market growth in 2021, there remains substantial potential for further expansion, particularly with improved retail access.
Overview of the Flower Market in a Canadian Cannabis Store
Even with the anticipated growth in cannabis sales, challenges persist in the cannabis flower market. Although cannabis flower continues to lead in sales, its dominance is gradually declining as other categories gain popularity. Wholesale prices have remained relatively stable, though unexpected price hikes have been reported in certain provinces.
The average price for dried cannabis flower in October 2023 was $1.10 per gram, based on the latest data, a 6.8% increase from the September average of $1.03 per gram. Year-over-year prices reveal even more significant shifts.
Provinces Experiencing a Price Hike per THC Level on Newly Harvested Flower
The price of cannabis flowers varies from newly harvested to aged options. Recently harvested flowers have been selling more quickly, with their average age dropping to a low of 65 days in April. Conversely, the average price for aged flowers has largely stabilized at $0.69 per gram in April, indicating a 1% decrease from the year-end price of $0.70 per gram.
- 30%+ THC: Recently harvested flower’s average price rose by 2.7%, from $1.81 per gram in March to $1.86 per gram in April.
- 25-30% THC: Traded at a weighted average price of $1.34 per gram, reflecting a 12.6% increase from the March price of $1.19 per gram.
- 20-25% THC: Settled at $0.95 per gram, showing an 11.2% drop from the March average of $1.07 per gram. The cannabis Commodity Exchange (CCX) forecasts 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% decline from the March price of $0.90 per gram. Nevertheless, CCX anticipates a recovery in May, with a 13.0% increase to $0.78 per gram.
Factors Influencing Price Hike
As the cannabis market continues to grow in 2024, various elements contribute to fluctuations in cannabis flower prices. Market dynamics and regulatory frameworks are intertwined with these factors.
Supply and Demand
Cultivation yields greatly affect the amount of cannabis available in the market, which varies due to weather patterns, pests, and diseases. Seasonal changes also influence production levels. For example, outdoor cannabis cultivation peaks during the late summer and early fall harvest, leading to an influx of supply that can decrease prices.
Consumer preferences may shift due to trends, disposable income changes, and evolving views on cannabis. An uptick in demand for cannabis products can drive prices up, especially if supply cannot keep up. Conversely, reduced demand, possibly due to economic downturns or shifts toward alternative products, can decrease prices.
Product Diversification
The cannabis market has witnessed significant diversification, as consumers express interest in a broad array of products beyond traditional recreational cannabis flower. These products include edibles, vape pens, pre-rolls, tinctures, and concentrates like live resin. The growing demand for these diverse products can influence flower prices.
Technological Integration
The emergence of online shopping platforms for cannabis products has simplified the process for consumers to purchase a wide variety of cannabis items from their homes. This convenience can boost consumption and impact wholesale demand and prices.
Delivery services have also gained prominence, allowing customers to receive cannabis products directly at their doorsteps. The convenience of delivery services can heighten demand, especially in areas where physical dispensaries are less accessible, thus influencing prices by increasing overall market demand.
Price Hike Demands for Discounted Cannabis, Customers Order Online
As the cost of cannabis flower rises, consumers are on the lookout for more affordable options. This includes buying flower with lower THC levels, seeking out online dispensaries for cheaper alternatives, or choosing alternative products.
Online cannabis shops provide a range of THC flower at various price points per gram. Due to their broader customer base, online dispensaries can offer lower prices than brick-and-mortar stores. They also run weekly promotions to give customers options if they find it hard to cope with rising prices of other cannabis flowers.
Here’s a list of cannabis buds available for sale at Get Kush Canada. Get $99 per ounce or 28.35 grams for cannabis.
Conclusion
Experts predict that the cannabis market will continue to grow, with annual sales on the rise. Despite increasing demand, high-quality cannabis flower, particularly hybrid strains, is becoming pricier. Several factors contribute to these price increases, prompting customers to seek the best deals or consider alternative products like vape cartridges. Online dispensaries offer discounted prices on cannabis flower, enabling customers to 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?
While higher cannabis prices can strain consumers financially, there are significant advantages:
- Improved Product Quality: Higher prices allow producers to invest more in cultivation methods and quality control, resulting in better, safer, and more consistent cannabis products.
- Enhanced Regulation: Rising prices may indicate stronger regulatory oversight, ensuring products meet safety and quality standards while protecting consumers from potentially harmful or inferior goods.
- Economic Benefits: Increased prices can boost state revenues through higher taxes, allowing reinvestment in public services. This also encourages local cannabis businesses’ growth, job creation, and economic development within the community.
How can consumers find discounted cannabis in light of the price increase?
Consumers can discover lower cannabis prices through sales promotions, bulk buying, loyalty programs, or by shopping at dispensaries known for offering lower prices. Some provinces also have medical cannabis programs that provide lower prices for qualifying patients.
What should consumers look for when purchasing discounted cannabis?
When buying lower-priced cannabis, consumers should prioritize quality assurance, lab testing results, reputable brands, and dispensaries with positive customer reviews to ensure they receive safe and effective products.
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