Inflation is everywhere, as are the rising costs of many things, including cannabis. As Canada’s recreational cannabis industry continues to grow, many cannabis users are now looking for discounted cannabis.
But what if giant weed producers in the market consider a sale – could this open the door to lower prices at your local cannabis store? Let’s explore how this shift could reshape the way you shop for your favourite products.
Table of Contents
Key Takeaways:
- More competition, changing demand, and new retailers have created pressure to lower prices.
- Discounted sales at certain dispensaries grew from 10% to 25% by April.
- Low-priced weed sales expand product choices for customers to experiment with different strains and forms without a major financial commitment.
The Shifting Dynamics of Cannabis Industry in Canada According to Experts
Jacquie Trombley from Agmedica Bioscience has noticed a shift in 2024 as the industry transitions from a buyer’s to a seller’s market. Increased competition among brands, fluctuating demand, and the rise of new retailers have led to pricing pressures.
Steve Clark, from the Canadian Cannabis Exchange, noted that domestic supply is shrinking as growing facilities close and companies reduce production space. This is driving up demand and reducing the wide selection of flowers and the availability of other accessories.
Michael Gorenstein, CEO of Cronos Group, echoed these concerns. He saw a shortage of high-quality cannabis products. The company has also warned of potential shortages in raw materials in its latest quarterly report. Thus, the group decided to explore sale options to respond strategically to these dynamics. They will test the company to see if it will adapt to evolving consumer demands while staying competitive.
Discount Marijuana Segment Heats Up
High costs were a common complaint among consumers when Canada legalized recreational weed in October 2018. Major producers are beginning to introduce lower pricing.
Raj Grover, CEO of an Alberta-based retailer, noted the value segment is the most hotly contested in marijuana today, with many producers racing to offer 3.5-gram options priced between CA$19 and CA$25 (approximately $14 to $18.44).
Some producers have entered the market, including Alberta’s Aurora Cannabis. Their brand sale became the top seller in Ontario in March and April.
This discounted or sale tactic made up about 10% of sales at High Tide’s Canna Cabana and KushBar stores. This figure grew to 25% of sales by April. This growth will continue, speculating that low-priced weed could eventually account for as much as half of total sales.
How the Sale Could Impact Marijuana Prices?
Potential product sales could trigger several key changes, particularly in terms of pricing and promotions. If new investors or owners step in, they may implement strategies to capture market share, such as offering discounts, sales, and bulk pricing options.
Potential Outcomes:
- Customers may see many special offers, discounts, and promotions at physical stores and when they order online.
- Customers could benefit from a wider selection, including pre-rolls, edibles, and vape pens, all at competitive costs.
- This shift can alter brand loyalty and consumer preferences, with value brands gaining popularity, particularly among budget-conscious consumers.
- Discounted items create more competition among producers and retailers. This can lead to price wars and forcing companies to find ways to differentiate their offerings.
Customer Experience: What to Expect?
For customers, the sale could open the door to new shopping experiences, both online and in physical stores. As competition grows, brands will likely focus on enhancing customer satisfaction.
What to expect when sales continue:
- Accessible to a broader range of consumers.
- Expands product choice without a significant financial commitment. This can encourage experimentation with various strains and forms.
- Some consumers might worry that it equate to lower quality.
- Encourages bulk purchases.
- Become more educated, including its effects, benefits, and proper usage
Shop Discounted Dried Flower Products Online
Answering the tight online competition, GrassLife offers new, affordable deals for your favourite strains. Look at the following examples:
| Product | Price | Strain Type | THC (%) | CBD (%) |
| MAC Donut | $99.00 (ounce) | Hybrid | 19.5 | 0.5 |
| Georgia Pie | $99.00 (ounce) | Indica | 27 | 0.4 |
| Purple Dragon | $99.00 (ounce) | Indica | 19.5 | 0.5 |
| Chatterbox | $24 – $175 (regular) $18.00 – $131.25 (sale) | Hybrid | 21 | 0.7 |
How Will Prices Change in the Future?
The future remains uncertain, but several factors suggest that consumers may see more competitive pricing. As the wholesale weed industry shifts, costs at dispensaries are likely to drop because of better deals. New owners or investors will introduce loyalty programs or first-order discounts to attract many customers.
Here are some potential price adjustments you may see:
| Product Category | Current Average Price | Possible Future Price |
| Pre-Rolls | $10 – $15 | $7 – $10 |
| Vape Pens | $35 – $60 | $25 – $45 |
| Edibles | $5 – $10 per unit | $4 – $8 per unit |
| Hybrid Strains (Flower) | $8 – $12 per gram | $5 – $9 per gram |
The Future of Canada’s Weed Market
The bold sale of different weed sellers could change the Canadian weed sector and affect product prices and delivery methods. While the industry is still growing, competition will keep driving innovation and give consumers more affordable options. The trend suggests that cheaper and a more unique variety of quality products may soon be the standard.
Frequently Asked Questions
Will we expect lower prices on products like live resin or vape carts?
Yes, some dispensaries are starting to offer discounts on products beyond just flower, such as live resin and vape cartridges. While these products aren’t as cheap as flower, their prices are still lower during sales.
The higher cost is due to the additional processing and refining needed to produce them and their higher cannabinoid content. For example, while buds contain 10% to 30% THC, refined products exceed 30% THC, justifying the higher price. However, ongoing sales make them more affordable.
Are all low-priced products safe to use?
Low prices don’t necessarily reflect the quality of marijuana. Some dispensaries offer discounted products due to factors like excess supply, the need to clear inventory, or to boost demand. However, low-cost weed doesn’t always mean good quality.
Compare sale prices across different dispensaries to ensure they’re within a competitive range. If the price seems unusually low, verify that the source is a reputable dispensary and not a potential scam.
Which province in Canada offers the lowest weed cost?
According to Statistics Canada, Quebec has the lowest prices in the country, averaging $7.88 per gram, while Ontario has the highest, averaging $6.21 per gram.
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