The era of “high THC, nothing else matters” is behind us. This shift in preferences is driving the growth of the premium cannabis market, where small-batch, locally-grown products outshine mass-produced alternatives.
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Table of Contents
Key Takeaways
- Craft cannabis is redefining industry standards by focusing on quality over quantity.
- Craft cannabis differs from commercial varieties through small-batch production, organic practices, unique strains, and strict quality control.
- The rise of craft production is transforming the cannabis landscape, as consumers increasingly favor premium brands, prompting larger companies to collaborate with small-batch producers.
High-Quality Craft Cannabis
High-quality craft cannabis has become a symbol of innovation and excellence in the industry, raising the bar for potency, flavor, and diversity. Through careful cultivation and small-batch production, craft growers provide a product that is free from contaminants and rich in unique strains, including cannabis.
In British Columbia, the heart of premium craft cannabis, a vibrant community of growers and enthusiasts is reshaping perceptions and expanding the possibilities.
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 |
| Emphasizes unique strains with varying flavors and effects | Focuses on popular strains for mass-market appeal |
| Quality control is prioritized with personalized care | Quality control may be less rigorous due to mass production |
| Growers are knowledgeable and passionate about their products | Operational scale may limit personal touch and expertise |
| Products undergo rigorous testing for consistency and quality | Testing protocols may vary, with some products lacking thorough scrutiny |
What is a AAAA Craft?
Quality Control
Growers meticulously monitor each plant, ensuring precise nutrients and care throughout its growth cycle. Every bud is hand-trimmed with care—no shortcuts or mechanical methods that could compromise quality.
Craft growers also emphasize curing, allowing buds to dry slowly in controlled environments.
Small Batch Sizes
Producers nurturing limited quantities can closely track each plant’s growth, ensuring it receives essential water, nutrients, and attention.
By keeping batches small, producers maintain higher cleanliness and health safety standards, applying organic composts and natural fertilizers more effectively than larger operations.
Grown by Organic Methods
Craft cannabis is cultivated using organic practices, including natural fertilizers and composts, optimizing plant potential while minimizing its carbon footprint.
Focusing on sustainable farming, craft producers aim to promote environmental responsibility and deliver a product that reflects eco-conscious cultivation principles.
Small-scale growers utilize certified organic techniques to ensure the purity and quality of their cannabis, prioritizing natural inputs like worm castings and compost to enhance yield and potency.
Differences in Potency
Craft cannabis often has higher potency than commercial varieties due to the careful selection and breeding of specific strains. Growers concentrate on maximizing cannabinoid and terpene content, resulting in more potent and flavorful products.
This focus on detail and genetic enhancement allows craft cannabis to provide a more intense and unique experience for consumers, meeting the demand for high-quality, potent marijuana.
These methods also account for the potency differences between craft and commercial cannabis, as craft growers apply meticulous techniques to enhance the psychoactive effects of their products.
How Craft Cannabis is Changing the Industry
Consumers are increasingly loyal to craft and premium brands due to perceived consistent quality. Consequently, large Canadian cannabis producers are pivoting toward small-batch cultivators to meet the rising demand for high-quality “premium” marijuana products.
Partnerships and acquisitions between major licensed producers and craft companies are becoming more frequent. Larger companies are learning from smaller ones how to produce premium cannabis. Craft producers are appraised based on their cultivation methods, finishing techniques, team expertise, and regulatory compliance.
Overall, the focus 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) of over 25% for the cannabis market in the coming years. This optimistic forecast is driven by evolving consumer preferences for higher-quality products and the growing acceptance of cannabis in various global regions.
Market Analysis by Types
- Dry: Includes traditional flower buds consumed by smoking or vaporizing.
- Oil: Refers to extracted oils for various uses, such as edibles or concentrates.
- 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 for enthusiasts.
- Medical market: Craft is produced to provide therapeutic benefits, adhering to strict quality standards and producing strains with specific medicinal properties.
Emerging Trends in Global Craft Cannabis
- Growing demand for organic and sustainably produced products, promoting natural cultivation practices.
- Increased focus on quality and unique strain varieties, with consumers seeking differentiated and premium products.
- The market is seeing a rise in cannabis-based wellness and medicinal products as more countries embrace cannabis for medical use.
- The industry is shifting toward 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, founded in 2013 and based in Ontario, Canada.
The company has seen exponential growth, becoming a global industry leader with a market size measured in billions. In its most recent fiscal year, Canopy Growth reported sales revenue of approximately $399 million.
Aurora Cannabis Inc.
Headquartered in Alberta, Canada, Aurora has experienced significant growth both domestically and internationally.
It stands as one of the largest companies globally, with a market size estimated in billions. In its latest fiscal year, Aurora generated approximately $249 million in sales revenue.
Cronos Group Inc.
Founded in 2012, Cronos is a globally diversified cannabis company based in Ontario, Canada.
Cronos has been a key player in the craft cannabis market, witnessing substantial growth. Its market size is estimated in the billions, with sales revenue of about $108 million in its most recent fiscal year.
Why Commercial Cannabis is Losing
- Existential Pricing Challenge: Declining marijuana prices present a significant challenge to the cannabis industry, impacting growers, retailers, and stakeholders.
- Market Saturation in Mature Markets: In states with long-established cannabis programs, lower prices may fail to attract new buyers, leading to tight profit margins.
- Strategic Responses: Companies are addressing pricing challenges through deep merchandising, price strategies, and a store-by-store approach to market dynamics.
- Impact on Sales and Growth: Falling prices have resulted in reduced sales in some markets, despite efforts to stimulate demand through promotions.
Craft Cannabis: High-Quality Products
The rise of craft production is reshaping the cannabis industry, emphasizing quality over quantity. This trend is prompting larger companies to pivot towards small-batch cultivators, driving partnerships and acquisitions. Despite challenges such as pricing pressure and competition with the black market, the craft market shows promising growth potential, fueled by shifting consumer preferences.
Frequently Asked Questions
What are the Best Craft Strains?
While the “best” strains are subjective, popular choices include those with unique terpene profiles, delivering distinctive flavors and effects.
Can I Grow Craft Cannabis Myself?
Yes, with the right knowledge and resources, growing craft cannabis at home is feasible. Emphasizing organic practices, careful strain selection, and attentive care throughout growth and curing is crucial for achieving craft-quality cannabis.
What is Craft Cannabis in Ontario?
At the OCS, craft is defined 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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