The introduction of cannabis markets in countries such as Canada has not met expectations. Predictions from major companies and venture capitalists significantly outstripped the actual market demand.
Currently, significant production facilities are shutting down, substantial stockpiles of dried flower remain unsold, and the illegal market still dominates approximately 80% of the estimated $8 billion Canadian industry.
In spite of these obstacles, innovative business models are developing. Entrepreneurs are increasingly choosing smaller micro-cultivation facilities to grow premium craft cannabis strains, which helps lower costs and enhance the quality of the marijuana produced. This transition could alleviate the industry’s supply surplus since micro-cultivation functions on a smaller scale.
For the finest cannabis experience, 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. According to Althing Consulting, these 20,000-square-foot establishments are replacing the larger ones.
Consumers are gravitating towards small-scale producers due to their high-quality craft cannabis. Prices are also decreasing. This trend reflects patterns observed in other global marketing initiatives.
By the end of 2022, Canada’s indoor cultivation area had diminished by 28% from its 2020 peak. The federal government awarded only 58 standard cultivation licenses that year, the lowest total since 2018.
Unlike standard licenses, which have 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 consecutive year. In 2021, there were 106 standard licenses compared to 134 micro licenses.
Micro vs. Standard cannabis Cultivation Licenses in Canada
The highest number of new standard cannabis cultivation licenses in Canada was recorded in 2020, during a period of overproduction and waste of unsold products.
Note: Micro licensees are restricted to 200 square meters of growing space, whereas standard licensees face no such limitations.
Growing Interest in Craft Strains
Consumers are balancing their sensitivity to prices with a quest for the highest-quality products available. This has led many to favor micro-cultivators.
Micro-cultivators can produce high-THC, premium products more effectively and consistently than larger growers with standard licenses, which are typically used for larger, value-driven production. Smaller production operations are generally recognized for yielding better-quality strains.
The trend toward premium and high-potency products has become financially viable, as increased costs necessitate more production to achieve satisfactory returns. Similar to the wine industry, many consumers seek authentic products typically available from micro-licensed facilities.
Large corporations 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 deliver 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 substantial oversupply of low-quality strains, leading to a transition toward smaller growing operations. As of December 2022, the national inventory of dried flowers reached a staggering 1.47 billion grams (3.2 million pounds), predominantly held by licensed producers. This surplus is roughly four times the amount sold at retail in that year.
Despite the high inventory levels, concentrating 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 contracted by 28% from its peak in 2020.
Renovation Details
Renovations are underway at a micro-cultivation facility located at the former PPG plant in Owen Sound. The initiative, spearheaded by Robert Stanford, president of Micro Marketing, aims to produce high-quality products within a 40,000-square-foot area in the Peninsula Pro-Growth Business Park. The first phase includes four micro-cultivation units with five grow rooms designed for top-tier strain production.
Stanford expresses enthusiasm about this venture, which he believes is unique in Canada. The facility will emulate the small, controlled environments typically used in black market cultivation while operating legally. Buyers can invest in a grow table for $150,000, with an expected annual profit of $66,000 after expenses. Each unit is equipped with essential systems and security measures, with access limited to licensed individuals.
This project is not affiliated with MPX Bioceutical Corp, a previous proposal for the site. Stanford’s business model enables store operators to create their private-label products. The facility is projected to generate high-paying local jobs, with future phases potentially expanding the project significantly to accommodate the cultivation of 50 different strains.
Officials in Owen Sound have been supportive, 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 various implications. Nowadays, consumers prefer to buy craft cannabis online rather than in commercial outlets. What accounts for these differences?
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
Typically 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
Focus on quality and detail, innovative techniques
Efficiency-driven may prioritize yield over quality
Product Quality
Generally higher, 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 methods and community involvement. Often linked with premium products and higher prices.
- Commercial Cannabis: Large-scale production prioritizing efficiency and yield. Capable of producing high-quality products but often perceived as lower quality due to cost-saving strategies and scale.
Buy Craft cannabis Canada: Product Selection
With numerous rising retailers and sellers of these strains, finding the best option can be daunting. But don’t worry. We have sorted out 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, or quality cannabis, is gaining popularity in British Columbia and throughout Canada. Much like other craft products, such as craft beer or craft coffee, it signifies 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 challenges like overproduction and unsold inventory. These cultivators are favored for producing high-quality products, as evidenced by the rise of micro-cultivation licenses. Now, the industry is 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, aiding “mom-and-pop” shops to thrive. Small batch cultivation often results in superior quality products, enabling these smaller enterprises to compete in a saturated market.
- Eco-Friendly Practices: Various brands employ sustainable methods, cultivating plants in coconut husks and avoiding harmful pesticides. They customize 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 practices and technologies to produce the highest quality while minimizing their carbon footprint.
- Outdoor Growing: Plants benefit from natural sunlight and fresh air, utilizing 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 an increasing focus on sustainability and quality. Artisanal growers play a vital role in this regard. They operate on a small scale, ensuring consistent quality and better production control. This approach prioritizes sustainable practices, using less water and electricity, positioning growers as essential 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 anticipated to grow steadily, according to a Global Business Accelerator report. Key drivers include technological advancements and heightened environmental awareness. Producers must concentrate on product innovation, strategic partnerships, and expanding their reach to maintain competitiveness.
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