Price of Wholesale Kief Continues to Rise as Companies Expand Infused Pre-Rolls Sku’s
Cannabis brands across Canada are expanding their 2.0 portfolio to include infused pre-rolls. Infused pre-rolls are joints that have kief, hash, shatter, or other cannabis extracts added to increase THC potency. Due to recent clarifications from Health Canada, Canadian brands are able to bring infused pre-rolls to Canadian consumers under the concentrates and extracts classification. Licensed producers are able to combine different forms of cannabis in pre-rolls, as long as the pre-roll is classified as an extract.
Recent trends have caused kief demand to increase significantly in the beginning of 2022, due to infused pre-roll SKU approvals and demand from consumers. According to data from the Canadian Cannabis Exchange (CCX), settled kief prices have risen from $0.34/gram in 2021 to $1.91/gram in February 2022.
Before there was a demand for infused pre-rolls, kief was viewed as a by-product without a clear usage in the Canadian market. Now buyers are actively seeking out strain specific, fully tested kief. CCX expects pricing to increase throughout 2022 as the Canadian cannabis market develops and companies seek to add infused pre-rolls to their portfolio. The infused pre-roll category has shown significant growth in established cannabis markets in the US. According to data on Headset, 44% of the best-selling pre-rolls in California are infused. The Canadian market is projected to see similar growth as the pre-roll market has grown to 24% of the overall market and infused pre-rolls have tested favourably in focus groups with cannabis enthusiasts and connoisseurs.