The launch of cannabis markets in places like Ganja Express Canada has not met expectations. Predictions from major corporations and venture capitalists significantly surpassed the actual market demand.
Currently, large production facilities are shutting down, with substantial inventories of dried flower remaining unsold, while the illicit market still dominates approximately 80% of the estimated $8 billion industry in Canada.
Amid these difficulties, innovative business models are emerging. Entrepreneurs are increasingly turning to smaller micro-cultivation facilities to produce premium craft cannabis strains, aiming to reduce costs and enhance quality. This transition may alleviate the industry’s supply surplus, as micro-cultivation operates on a reduced scale.
To experience the best quality cannabis, you can now “Buy Craft cannabis Canada.”
Table of Contents
Canadian cannabis Market
While large facilities like Canopy’s are closing, smaller, boutique-style cultivation facilities are emerging as the future of the industry. According to Althing Consulting, these 20,000-square-foot facilities are taking the place of massive operations.
Consumers are increasingly favoring small-scale producers for their high-quality craft cannabis. Prices are also declining. This trend aligns with patterns observed in other global marketing efforts.
By the end of 2022, the indoor growing area in Canada decreased by 28% from its peak in 2020. The federal government issued only 58 standard cultivation licenses in 2022, the lowest since 2018.
Micro-class permits, unlike standard licenses that have no size limits, restrict cultivation to 200 square meters (2,150 square feet). In 2022, 130 new micro licenses were issued, surpassing standard ones for the second year in a row. In 2021, 106 standard licenses were issued 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 limited to 200 square meters of growing area, while standard licensees have no such restriction.
Growing Interest in Craft Strains
Consumers are balancing price sensitivity with a desire for the highest quality products available. This has led to a preference for micro-cultivators.
Micro-cultivators can produce high-THC, premium products more easily and consistently than large-scale growers with standard licenses, typically used for larger, value-driven production. Smaller operations are generally recognized for yielding better-quality strains.
The shift towards premium and high-potency products has been financially beneficial, as higher costs require increased production to achieve returns. Similar to the wine industry, some consumers prefer 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 allows major licensed producers to effectively and economically 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 faces a significant oversupply of low-quality strains, prompting a shift towards smaller growing operations. As of December 2022, the nationwide inventory of dried flowers reached an unprecedented 1.47 billion grams (3.2 million pounds), with the majority held by licensed producers. This excess is approximately four times the amount sold at retail that year.
Despite the high inventory, focusing on smaller cultivation businesses may help alleviate the supply glut. According to Health Canada, by the end of 2022, Canada’s indoor growing area had shrunk by 28% from its 2020 peak.
Renovation Details
Renovations have commenced on a micro-cultivation facility at the former PPG plant in Owen Sound. The initiative, led by Robert Stanford, president of Micro Marketing, 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 with five grow rooms designed to yield top-tier strains.
Stanford is enthusiastic about the project, which he believes is unique in Canada. The facility will replicate the small, controlled environments used in black market cultivation but within a legal framework. Buyers can purchase a grow table for $150,000, with an estimated annual profit of $66,000 after expenses. Each unit is equipped with necessary systems and security, with access restricted to licensed individuals.
The project is not connected to MPX Bioceutical Corp, a previous proposal for the site. Stanford’s business model allows store operators to produce their private-label products. The facility is expected to create high-paying local jobs. Future phases could significantly expand the project, potentially allowing for the cultivation of 50 different strains.
Owen Sound officials have shown support, and this venture marks Micro Marketing’s first of several planned projects across the province.
Impact on Artisanal cannabis Production
The renovation and establishment of new facilities have several effects. Today, consumers prefer to buy craft cannabis online rather than in commercial stores. Why? Let’s explore the differences between the two.
Feature
Artisanal Cannabis
Commercial Cannabis
Definition Small-scale, high-quality production Large-scale cultivation, often perceived as average or lower-quality products
Scale of Production Small, typically up to 200 sq meters Large, no size limits 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 use cost-saving substitutes
Cultivation Practices Focus on quality and detail, innovative approaches Efficiency-driven may prioritize yield over quality
Product Quality Generally higher, rich cannabinoid and terpene profiles Perceived as lower, but 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 focusing on 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-saving 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 have curated the best craft cannabis available online.
Feature
Supersonic
Purple Dragon
Glitter
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 recognized as quality cannabis, is gaining traction in British Columbia and across Ganja Express Canada. Similar to other craft products like craft beer or craft coffee, it symbolizes superior quality. Cannabis strains such as Miracle Alien Cookies, Purple Dragon, and Supersonic are renowned for their beneficial mental effects.
The Canadian cannabis market is transitioning from large-scale production to smaller facilities due to challenges like overproduction and unsold inventory. These cultivators are favored for their ability to produce high-quality products, as seen in the rise of micro-cultivation licenses. The industry is now focusing on these small batches of strains to enhance quality and market reach.
Frequently Asked Questions
What are the Benefits of Artisanal Cannabis?
- Economic Boost: Supports small businesses, helping “mom-and-pop” shops thrive. Small batch growth often results in superior quality products, allowing these smaller businesses to compete in a crowded market.
- Eco-Friendly Practices: Different brands use sustainable methods, growing plants in coconut husks and avoiding chemical pesticides. They tailor nutrient formulations for each strain, ensuring optimal growth and minimal environmental impact.
- Organic Cultivation: Organic strains are grown without harmful pesticides. They utilize innovative, responsible methods and technology to produce the highest quality while reducing their carbon footprint.
- Outdoor Growing: The plants benefit from sunlight and fresh air, using beneficial microbes and insects rather than chemicals to protect their crops. This sustainable approach is better for the farm, environment, and product.
Where Does Craft cannabis Fit Into The Emerging cannabis Industry?
There is a growing focus on sustainability and quality. Artisanal growers play a vital role in this shift. They operate on a small scale, ensuring consistent quality and better control over production. Unlike conventional methods, they emphasize sustainable practices, using less water and electricity. This transition positions growers as key players in meeting 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. Key drivers include technological advancements and increasing environmental awareness. Producers should prioritize product innovation, strategic partnerships, and expanding their reach to remain competitive.
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