Declining Prices Boost Cannabis Sales in British Columbia

LOS ANGELES — As cannabis prices in British Columbia continue their descent, the province is experiencing a boom in sales, according to the latest wholesale quarterly report covering April to June 2023.

Released data offers a deep dive into evolving consumer patterns, as larger quantities of dried cannabis flower, especially 7-gram to 30-gram options, grow in popularity. In particular, cannabis extracts — which now embrace the trending infused pre-roll category — saw a spike of 76.4 percent in units sold and a jump of 51.5 percent in sales.

The BC Liquor Distribution Branch’s (BC LDB) Direct Delivery Program, introduced in August 2022, was excluded from the broader sales data. This program, standing apart from the LDB’s central delivery stream, provides a unique avenue for product sales.

The period noted a nearly 16 percent increase in the wholesale sector’s revenue, pushing the total to over $127 million. Concurrently, retail store counts in the province grew to 487, up from 442 the previous year. While sales are thriving, average cannabis prices have hit a low at $4.14 per gram, with dried cannabis even cheaper at $3.40 per gram.

The BC LDB, responsible for wholesale cannabis sales and distribution oversight, reported sales exceeding thirty thousand kilograms (or 30,655,160 grams) in this quarter — a remarkable 32 percent growth year-on-year.

A notable trend from the report indicates consumers shifting away from dried flower options priced above $5 per gram. Instead, offerings priced at or below $5 per gram, especially eighths and 7-gram to 14-gram packages, witnessed sales hikes. Demand particularly soared for 28-gram offerings priced at a mere $3 per gram.

Other product categories, like cannabis beverages, observed over a 20 percent year-on-year sales increase. Edibles inched up by 0.3 percent, whereas dried flower sales decreased by 4.4 percent. However, ingestible extracts, including cannabis oils and discontinued products like Jolts and Glitches, rose by 5.6 percent.

Moreover, inhalable extracts, covering vape pens to infused pre-rolls, recorded sales booms of 56.5 percent and 14.2 percent respectively. In contrast, seeds and cannabis topicals experienced sales downturns of 7.1 percent and 11.1 percent.

The report underlines a clear transformation in British Columbia’s cannabis market. As prices fall, consumers are not shying away but rather diversifying their product choices and leaning towards bulk purchases and newer product categories.