The introduction of cannabis markets in countries such as Canada has not met initial expectations. Estimates from major corporations and venture capitalists significantly outstripped the actual market demand.
Currently, numerous large production facilities are shutting down, excess inventories of dried flower remain unsold, and the illicit market continues to dominate around 80% of the projected $8 billion Canadian industry.
In spite of these hurdles, innovative business models are taking shape. Entrepreneurs are increasingly selecting smaller micro-cultivation facilities aimed at producing premium craft cannabis strains to lower costs and enhance quality. This transition could assist in alleviating the industry’s oversupply issue, as micro-cultivation operates on a reduced scale.
For the finest quality cannabis, you can now “Buy Craft cannabis Canada.”
Table of Contents
Canadian cannabis Market
While large operations like Canopy’s are closing, smaller, boutique-style cultivation facilities are emerging as the future of the industry. Althing Consulting reports that these 20,000-square-foot facilities are taking the place of the larger counterparts.
Consumers are favoring small-scale producers for their superior quality craft cannabis. Prices are also decreasing, aligning with trends observed in various global marketing strategies.
By the close of 2022, the indoor growing area in Canada had diminished by 28% from its 2020 high. The federal government issued merely 58 standard cultivation licenses in 2022, marking the lowest number since 2018.
Unlike standard licenses with 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 year in a row. In 2021, there were 106 standard licenses compared to 134 micro licenses.
Micro vs. Standard cannabis Cultivation Licenses in Canada
The peak of new standard cannabis cultivation licenses in Canada occurred in 2020 amidst overproduction and waste of unsold products.
Note: Micro licensees are restricted to 200 square meters of growing area, whereas standard licensees have no such limitations.
Growing Interest in Craft Strains
Consumers are navigating price sensitivity alongside a desire for the highest-quality products within their reach. This trend has led many to prefer micro-cultivators.
Micro-cultivators can consistently produce high-THC, premium products more effectively than larger growers working with standard licenses typically used for larger, value-driven production. Smaller production methods are generally known for yielding better-quality strains.
The focus on premium and high-potency products has proven financially beneficial, with higher costs requiring increased production to achieve a return on investment. Similar to the wine sector, some consumers are inclined towards authentic products typically found in 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 issue is the oversupply of strain products.
Canada is experiencing a significant oversupply of low-quality strains, prompting a shift towards smaller growing 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 stockpile is approximately four times the amount sold at retail that year.
Despite the large inventory, concentrating on smaller cultivation businesses may help mitigate the supply surplus. Health Canada reported that by the end of 2022, Canada’s indoor growing area had decreased by 28% from its peak in 2020.
Renovation Details
Renovations are underway for a micro-cultivation facility at the former PPG plant in Owen Sound. Led by Robert Stanford, president of Micro Marketing, the project aims to produce high-quality products in a 40,000-square-foot space within the Peninsula Pro-Growth Business Park. The initial phase includes four micro-cultivation units equipped with five grow rooms designed to yield top-tier strains.
Stanford is optimistic about the project, which he believes is unique in Canada. The facility will mimic the small, controlled environments typical of black market cultivation within a legal framework. Buyers can acquire a grow table for $150,000, with projected annual profits of $66,000 after expenses. Each unit boasts essential systems and security, with access limited to licensed individuals.
This initiative is not associated with MPX Bioceutical Corp, a previous proposal for the site. Stanford’s business model allows store operators to produce their private-label products, with the facility anticipated to create high-paying local jobs. Future phases may significantly expand the project, potentially accommodating the cultivation of 50 different strains.
Owen Sound officials have expressed support, and this venture marks Micro Marketing’s first of several planned projects throughout the province.
Impact on Artisanal cannabis Production
The establishment and renovation of new facilities have numerous effects. Nowadays, consumers prefer to buy craft cannabis online rather than in commercial settings. Why? Let’s explore the distinctions between the two.
Feature
Artisanal Cannabis
Commercial Cannabis
Definition
Small-scale, high-quality production
Large-scale cultivation, often viewed as average or lower-quality products
Scale of Production
Small, typically up to 200 sq meters
Large, no size restrictions on standard licenses
Ownership
Usually independent, high cultivator ownership
Significant external or investor ownership
Automation
Limited, hands-on cultivation
High automation for large-scale operations
Ingredients
High-quality, traditional or innovative nutrients
May utilize cost-saving substitutes
Cultivation Practices
Emphasizes quality and detail, innovative methods
Efficiency-driven, may prioritize yield over quality
Product Quality
Generally superior, rich cannabinoid and terpene profiles
Perceived as lower, though can still be high-quality
Drying and Curing
Smaller batches, easier quality management
Larger batches, challenging to maintain consistency
In summary:
- Craft Cannabis: Small-scale, high-quality production emphasizing 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-cutting measures and scale.
Buy Craft cannabis Canada: Product Selection
With numerous retailers and sellers of these strains emerging, finding the best option can be daunting. But don’t worry; we’ve compiled a selection of the best craft cannabis available online.
Feature
Flavours
Herbal, tropical
Grape, sweet
Lavender, sage, vanilla
Strain Types
Sativa
Indica
Hybrid
THC
21%
19.5%
25%
CBD
0.5%
0.5%
0.2%
Genetics
Quantum Kush x Snow Lotus
Purple Urkle x Blue Dragon
Ken’s Granddaddy Purple x Mystic Gem
Aroma/Taste
Herbal, tropical
The musky scent, floral taste
Sweet basil, licorice
Effect
Uplifting, energizing
Cerebral, relaxing, pain-relieving
Creative head high, relaxing body feel
The Key Takeaway
AAAA craft, also referred to as quality cannabis, is gaining traction in British Columbia and across Canada. Comparable to other craft products such as craft beer or craft coffee, it represents superior quality. Cannabis strains such as 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 issues like overproduction and unsold inventory. These cultivators are well-regarded for producing high-quality products, reflected in the increase of micro-cultivation licenses. Now, the industry is concentrating on these small batches of strains to enhance quality and market presence.
Frequently Asked Questions
What are the Benefits of Artisanal Cannabis?
- Economic Boost: Supports small businesses, helping “mom-and-pop” shops flourish. Small batch growth often leads to superior quality products, enabling these smaller businesses to compete in a saturated market.
- Eco-Friendly Practices: Various brands employ sustainable methods, cultivating plants in coconut husks and steering clear of chemical pesticides. They customize nutrient formulations for each strain, ensuring optimal growth with minimal environmental impact.
- Organic Cultivation: Organic strains are cultivated without harmful pesticides. They utilize innovative, responsible methods and technology to achieve the highest quality while minimizing their carbon footprint.
- Outdoor Growing: Plants benefit from sunlight and fresh air, using 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 a rising focus on sustainability and quality. Artisanal growers play a vital role in this landscape. They operate on a smaller scale, ensuring consistent quality and improved control over production. Unlike conventional methods, the focus is on sustainable practices, utilizing less water and electricity. This shift positions growers as key players in fulfilling the industry’s demand for sustainability and exceptional quality.
What is The Future of the Artisanal cannabis Industry?
The cannabis market is projected to grow steadily, according to a Global Business Accelerator report. The primary drivers are technological advancements and heightened environmental awareness. Producers should concentrate on product innovation, strategic partnerships, and expanding their reach to remain competitive.
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