The introduction of cannabis markets in nations like Canada has not met initial expectations. Estimates from major companies and venture capitalists vastly outstripped the actual demand for the market.
Currently, significant production facilities are shutting down, large stocks of dried flower remain unpurchased, and the illegal market still dominates about 80% of the estimated $8 billion Canadian industry.
In spite of these hurdles, innovative business models are starting to take shape. Entrepreneurs are increasingly choosing smaller micro-cultivation operations to create premium craft cannabis strains, aiming to lower costs while enhancing quality. This transition could alleviate the surplus issue in the industry, as micro-cultivation functions on a more modest 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. Althing Consulting reports that these 20,000-square-foot facilities are taking the place of the larger counterparts.
Consumers show a preference for small-scale producers due to the superior quality of craft cannabis. Prices are also on the decline. This change aligns with trends observed in other global marketing strategies.
By the close of 2022, Canada’s indoor cultivation area had decreased by 28% from its peak in 2020. The federal government granted only 58 standard cultivation licenses in 2022, marking the lowest issuance since 2018.
In contrast to standard licenses that have no restrictions on size, micro-class permits limit cultivation to 200 square meters (2,150 square feet). In 2022, 130 new micro licenses were issued, outpacing 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 peak issuance of new standard cannabis cultivation licenses in Canada occurred in 2020 during a phase of overproduction and waste of unsold products.
Note: Micro licensees are restricted to 200 square meters of growing space, while standard license holders face no such limitations.
Growing Interest in Craft Strains
Consumers are balancing price sensitivity with their desire for the best-quality products available. This has prompted many to support micro-cultivators.
Micro-cultivators can cultivate high-THC, premium products more efficiently and reliably than large-scale growers with standard licenses, which are generally designed for larger, value-based production. Smaller operations are often recognized for producing superior quality strains.
The move toward premium, high-potency products is economically sensible, as elevated costs require increased production to attain a return on investment. Similar to the wine industry, many consumers are drawn to authentic products typically found in micro-licensed facilities.
Large corporations with standard licenses, such as Canopy Growth and Indiva, are increasingly forming partnerships with micro-license holders. This strategy enables major licensed producers to efficiently and cost-effectively deliver the best craft cannabis products 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 towards smaller growing operations. By December 2022, the national inventory of dried flowers had reached an unprecedented 1.47 billion grams (3.2 million pounds), with the majority held by licensed producers. This excess stockpile is approximately four times the amount sold at retail that same year.
Despite the high inventory, focusing on smaller cultivation businesses may help mitigate the supply surplus. As reported by Health Canada, by the end of 2022, Canada’s indoor growing space had diminished by 28% since its peak in 2020.
Renovation Details
Renovations are underway for 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 within a 40,000-square-foot space in the Peninsula Pro-Growth Business Park. The initial phase includes four micro-cultivation units with five grow rooms designed for top-tier strains.
Stanford is enthusiastic about the project, which he believes is unique in Canada. The facility will mimic the small, controlled environments traditionally used in black market cultivation, now within a legal framework. Buyers can acquire a grow table for $150,000, anticipating an annual profit of $66,000 after expenses. Each unit is equipped with essential systems and security measures, with access limited to licensed individuals.
The project is not connected to MPX Bioceutical Corp, a prior proposal for the site. Stanford’s business model enables store operators to produce their private-label products. The facility is projected to generate high-paying local employment opportunities. Future phases may significantly expand the project, potentially allowing for the cultivation of 50 distinct strains.
Owen Sound officials have shown strong support, and this venture marks Micro Marketing’s first of several planned projects throughout the province.
Impact on Artisanal cannabis Production
The renovation and establishment of new facilities yield several impacts. Today, consumers are more inclined to purchase craft cannabis online rather than from commercial sources. What accounts for the differences between the two?
Feature
Artisanal Cannabis
Commercial Cannabis
Definition
Small-scale, high-quality production
Large-scale cultivation, often viewed as average or inferior quality products
Scale of Production
Small, typically up to 200 sq meters
Large, no size limits 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 use 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, 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 emphasizing traditional or innovative cultivation methods and community engagement. Often linked to premium products and higher prices.
- Commercial Cannabis: Large-scale production focused on efficiency and yield. While it can produce high-quality products, it is often perceived as lower quality due to cost-saving measures and size.
Buy Craft cannabis Canada: Product Selection
With a multitude of retailers and sellers offering these strains, finding the best option can be daunting. However, there’s no need to worry. We have curated a selection of the finest 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 throughout Canada. Much like other craft products, including craft beer or craft coffee, it signifies 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 in response to issues like overproduction and unsold inventory. These cultivators are favored for producing high-quality products, as evidenced by the increase in micro-cultivation licenses. The current focus is 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 flourish. Small batch cultivation typically results in superior quality products, enabling these smaller enterprises to compete in a saturated market.
- Eco-Friendly Practices: Various brands employ sustainable methods, growing plants in coconut husks and steering clear of chemical pesticides. They customize nutrient formulations for each strain, ensuring optimal growth while minimizing environmental impact.
- Organic Cultivation: Organic strains are cultivated without harmful pesticides. They utilize innovative, responsible methods and technology to yield the highest quality with a smaller carbon footprint.
- Outdoor Growing: Plants benefit from sunlight and fresh air, utilizing beneficial microbes and insects instead of chemicals for crop protection. This sustainable approach is advantageous for the farm, environment, and product quality.
Where Does Craft cannabis Fit Into The Emerging cannabis Industry?
There is a growing focus on sustainability and quality. Artisanal growers play an essential role in this movement. 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 shift positions growers as vital contributors to fulfilling the industry’s demand for sustainability and exceptional quality.
What is The Future of the Artisanal cannabis Industry?
The cannabis market is poised for steady growth, as indicated by a Global Business Accelerator report. Key factors include technological advancements and increasing environmental consciousness. Producers must concentrate on product innovation, strategic partnerships, and expanding their reach to remain competitive.
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