Cannabis Economics
The market is evolving, and it’s the premium product that’s most in demand
Many baby boomers clearly recall the days of the “dime bag” — a time when they typically had no idea where their cannabis came from, nor what kind of pesticides or growing methods were used, or even what strain they were purchasing.
Today’s marijuana aficionados will tell you that not all cannabis is alike.
Many local dispensaries and Health Canada “Licensed Producers” or LPS are selling mostly greenhouse-grown cannabis, cultivated rapidly for the highest possible yields by large-scale producers. Often, the supply of this product exceeds the demand.
However, there is a new breed of conscientious grower that is producing small-batch, premium-quality, handtrimmed cannabis grown in purpose-built facilities. There’s an emerging demand in the marketplace for this premium-quality artisanal
product, driven both by consumers looking for an affordable indulgence, as well as those seeking superior functionality associated with optimal cannabinoid and terpene profiles.
The cannabis marketplace has already changed dramatically since Canada legalized recreational consumption in October 2018. More and more investors want to capitalize on its success. And its phenomenal popularity is only going to rise. According to Arcview Market Research and BDS Analytics, the Canadian legal cannabis market is expected to reach $5.2 billion in sales by 2024.
Discerning consumers can not only pick and choose which strains they prefer but also the growers they want to support.
Norton Singhavon, founder and CEO of GTEC Holdings, says there is only a handful of growers in British Columbia dedicating themselves to offering consumers exceptional, high-quality, optimally cured, small-batch craft cannabis.
Kelowna-based GTEC, a vertically integrated, socially conscious company operating across all major sectors of the country’s cannabis industry, is one of them.
“The province used to be home to three companies targeting the premium indoor cannabis market, but they were all acquired by larger corporations,” explains Singhavon. “However, the big boys can’t produce the same premium quality because it needs to be grown in small batches under optimal conditions.”
Singhavon says that when cannabis is produced indoors under stringent, controlled methods, it provides greater control over environmental variables, such as light, temperature, irrigation and nutrient levels — thus producing a bud that delivers superior visual appeal, flavour and aroma.
“There is technology out there that calculates in real time issues such as the temperature of the plant, so if it gets too hot, it can be remotely dealt with,” Singhavon adds. “Within a very short time frame, GTEC Holdings has demonstrated our ability to produce, market and distribute a premium cannabis product with a robust sightline into future sales.” Created by Bcbusiness in partnership with GTEC Holdings Ltd.