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Table of Contents
Key Takeaways
- Craft cannabis is establishing new benchmarks in the cannabis industry by emphasizing quality over quantity.
- Craft cannabis is set apart from commercial cannabis through small-batch production, organic cultivation methods, a focus on unique strains, and stringent quality control.
- The emergence of craft production is altering the dynamics of the cannabis landscape, with consumers increasingly loyal to premium brands and larger companies shifting towards small-batch cultivators.
High-Quality Craft Cannabis
High-quality craft cannabis has become a symbol of excellence and innovation within the industry, setting fresh standards for potency, flavor, and variety. Through careful cultivation methods and a commitment to small-batch production, cannabis producers ensure their products are free from contaminants and rich in unique strains.
In British Columbia, the hub of the finest craft cannabis, a vibrant community of cultivators and enthusiasts is redefining perceptions and pushing the limits of what is achievable.
Craft Cannabis vs. Commercial Weed
| Craft | Commercial |
| Produced in small batches by local growers | Grown in larger-scale operations |
| Cultivated using organic or sustainable farming practices | Utilizes synthetic fertilizers and pesticides for growth |
| Emphasizes unique strains with distinct flavors and effects | Focuses on popular strains for mass-market appeal |
| Quality control is a top priority with personalized care | Quality control can be less stringent due to volume production |
| Growers are more knowledgeable and passionate about their product | Operational scale may limit the personal touch and specific knowledge of the product |
| Products are rigorously tested for consistency and quality | Testing protocols may vary, with some products not undergoing the same level of scrutiny |
What is a AAAA Craft?
Quality Control
Growers meticulously monitor each plant, ensuring they receive precise nutrients and care throughout their growth cycle. Every single bud is hand-trimmed with precision—no shortcuts or mechanical processes that can compromise the integrity of the final product.
Craft growers also place a strong focus on curing, allowing buds to dry slowly in controlled environments.
Small Batch Sizes
By nurturing limited quantities, growers can closely monitor each plant’s development, ensuring it receives the necessary water, nutrients, and care.
Keeping batches small also allows producers to maintain higher cleanliness and health safety standards, utilizing organic composts and natural fertilizers more effectively than larger operations could manage.
Grown by Organic Methods
Craft cannabis is cultivated using organic methods, including natural fertilizers and composts. This approach optimizes the plant’s potential while minimizing its carbon footprint.
By prioritizing sustainable farming practices, craft producers aim to promote environmental responsibility and deliver products that align with the principles of eco-conscious cultivation.
Small-scale growers employ certified organic techniques to ensure the purity and quality of their cannabis products. They prioritize natural inputs like worm castings and composted materials to create an optimal growing environment for their plants, enhancing their crop’s yield and potency.
Differences in Potency
Craft cannabis often boasts higher potency than commercial cannabis due to the careful selection and breeding of specific strains. Growers focus on maximizing the cannabinoid and terpene content in their plants, resulting in more potent and flavorful products.
This attention to detail and genetic manipulation enables craft cannabis to provide a more intense and unique experience for consumers, aligning with the demand for high-quality, potent marijuana.
These methods also contribute to the potency differences between craft and commercial cannabis. Craft growers utilize meticulous techniques that can enhance the psychoactive effects of the final product.
How Craft Cannabis is Changing the Industry
Consumers are increasingly loyal to craft and premium brands due to perceived consistent quality. Therefore, large Canadian cannabis producers are pivoting towards small-batch cultivators to meet the rising demand for high-quality “premium” marijuana products.
Partnerships and acquisitions between large licensed producers and craft companies are becoming more frequent. Larger companies are learning to produce premium cannabis from smaller ones. Craft producers are evaluated based on their cultivation methods, finishing techniques, team expertise, and compliance with regulations.
Overall, the emphasis is shifting from mass production to quality, with craft cannabis gaining momentum in the Canadian market.
Market Potential
Market research predicts a compound annual growth rate (CAGR) exceeding 25% for the craft cannabis market in the coming years. This optimistic forecast is driven by evolving consumer preferences towards higher-quality products and the expanding legalization of cannabis in various regions worldwide.
Market Analysis by Types
- Dry: Includes traditional flower buds consumed by smoking or vaporizing.
- Oil: Refers to extracted oils utilized for various purposes, including making edibles or concentrates.
- The other market: Includes products like topicals, capsules, tinctures, and more, catering to diverse consumption preferences.
Market Industry Research
- Recreational market: Growers focus on cultivating high-quality strains with distinct flavors, effects, and potency to meet enthusiasts’ preferences.
- Medical market: Craft cannabis is produced to provide therapeutic benefits to patients, adhering to stringent quality standards and producing strains with specific medicinal properties.
Emerging Trends in Global Craft Cannabis
- Rising demand for organic and sustainably produced cannabis products is driving the adoption of natural cultivation practices.
- Increased emphasis on quality and unique strain varieties, with consumers seeking premium and differentiated products.
- The market is experiencing a surge in cannabis-based wellness and medicinal products as more countries accept it for medical purposes.
- The industry is shifting towards direct-to-consumer sales and online platforms, exploring innovative extraction techniques to enhance product potency and purity.
Major Market Players
Canopy Growth Corporation
Canopy Growth is a leading player in the craft cannabis market, established in 2013 and based in Ontario, Canada.
The company has experienced remarkable growth, becoming a global leader in the industry. The market size for Canopy Growth is estimated to be several billion dollars, with approximately $399 million in sales revenue generated in its most recent fiscal year.
Aurora Cannabis Inc.
Based in Alberta, Canada, Aurora has seen significant growth both domestically and internationally.
As one of the world’s largest companies in the cannabis sector, Aurora’s market size is also in the billions, generating around $249 million in sales revenue in its latest fiscal year.
Cronos Group Inc.
Founded in 2012, Cronos is a globally diversified cannabis company located in Ontario, Canada.
Cronos has played a pivotal role in the craft cannabis market, witnessing substantial growth, with an estimated market size in the billions and approximately $108 million in sales revenue in its recent fiscal year.
Why Commercial Cannabis is Losing
- Existential Pricing Challenge: The declining prices of marijuana pose a critical challenge to the cannabis industry, affecting growers, retailers, and other stakeholders.
- Market Saturation in Mature Markets: Regions with established cannabis programs may be reaching “peak weed,” with lower prices failing to attract new buyers, resulting in tight profit margins.
- Strategic Responses: Companies are addressing pricing challenges through deep merchandising strategies and a store-by-store approach to align with market dynamics.
- Impact on Sales and Growth: Decreasing prices have led to reduced sales in certain markets, despite efforts to stimulate demand through promotions.
Craft Cannabis: High Quality Products
The rise of craft production is transforming the cannabis industry, with a growing emphasis on quality rather than quantity. This trend is prompting larger companies to pivot towards small-batch cultivators and fostering partnerships and acquisitions within the sector. Despite challenges such as pricing pressures and competition from the black market, the craft market demonstrates promising growth potential, driven by changing consumer preferences.
Frequently Asked Questions
What are the Best Craft Strains?
While the “best” strains are subjective, popular options include those with distinctive terpene profiles, offering unique flavors and effects.
Can I Grow Craft Cannabis Myself?
Yes, with appropriate knowledge and resources, it is feasible to cultivate craft cannabis at home. Emphasizing organic practices, careful strain selection, and attentive care throughout the growth and curing processes are crucial for achieving craft-quality cannabis.
What is Craft Cannabis in Ontario?
At the OCS, we define craft as dried flower that is hang-dried, hand-trimmed, hand-packaged, and grown in a small-batch facility (producing less than 10,000 kg of dried cannabis annually).
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