Cannabis flowers’ market value is still the highest of all cannabis product categories. However, its growth is slowing as other products take the spotlight. Edibles, extracts, and topicals have soared in popularity in recent years. Manufacturers have been given access to a wider market creating variety in the cannabis product market. This is splitting buyers that may have previously purchased dried flower. In 2021, Canadian cannabis prices fell in all categories. This price decrease in dried flower is also contributing to the plateauing in its market value.
Price Decrease in Dried Flower
In many places, legal dried flower is now less expensive than the illegal market. Since it’s the goal of the government to eliminate the underground market, this isn’t surprising. Cannabis lovers everywhere can rejoice. At the cheapest end, customers can find ounces of dried flower for $65-75, compared to $200-220 in the illegal market. Prices for pre-rolls and small package sizes haven’t dropped as substantially. Since the supply chain stabilized in 2021, retailers were able to draw in high demand by offering discounts on larger package sizes.
Cannabis Products Taking the Spotlight
The four most popular edibles in Canada are gummies, cookies, brownies, and chocolates. Cannabis-infused beverages, vape products, and concentrates have also increased in popularity. These types of products are often more enticing to new cannabis users who may not be interested in smoking dried flower. In 2020 and 2021, manufacturers jumped on these opportunities, flooding the market with new cannabis products. Even regular dried flower consumers were lining up to try the newest thing on the market.
What’s in Store for 2022?
The demand for edibles, extracts, and topicals will likely stabilize a few years after legalization, as did the demand for dried flower. Prices of dried flower will remain competitive, but they aren’t predicted to fall as they did in 2021. The cannabis flowers’ market value, however, may continue to dip as these other products increase in affordability, accessibility, and popularity. From 2019 to 2020, the use of edibles went up by 5% while the use of dried flower decreased by 3%. If this trend continues, and the supply is greater than the demand, then the cannabis flowers’ market value may start to decline.