How COVID-19 Has Affected the Cannabis Industry

The cannabis industry has experienced growth during the coronavirus pandemic. The sale of cannabis stocks and products has soared in one of the worst economic markets in history. While other industries have struggled during the pandemic, the cannabis industry has thrived. This success has made the cannabis industry an exceptionally resilient industry.

Increase In Sales

The cannabis industry has seen an increase in sales since the start of the coronavirus pandemic. The increase in sales has been one of the most celebrated effects. Global cannabis sales have neared $21.3 billion and increased 48% from 2019. The United States and Canada had the highest sales rate. Many pandemic factors contributed to the growth in cannabis sales.

Government Shutdowns

Government shutdowns were one of the first public health measurements to stop the Coronavirus. When the virus began to spread in the early months of 2020, countries across the globe decided to limit movement and slow the spread of the virus. These shutdowns led to the closing of many public and private businesses.

These shutdowns also led to business classifications as essential and nonessential, with essential businesses deemed a need for society. State and local governments deemed dispensaries and cannabis cafes essential businesses. They were allowed to remain open while other businesses closed.

With other businesses closed and entertainment, leisure, shopping options slim, people began to turn their attention to local cannabis shops.

Increased Spending

When the news of the Coronavirus first began to spread, many people became weary and uncertain of the future. This led people to develop unusual shopping habits. During the first weeks of the pandemic, people began to buy items in bulk and hoard goods they felt were necessary to survive.

For many people, cannabis products were a necessary item. Cannabis is a part of many people's daily routines. Before dispensaries were deemed essential, people were unsure if dispensaries would stay open. People worried about when they would be able to buy cannabis products again. People began to buy cannabis products in bulk, driving up sales for many dispersers. States like California saw a 100% increase in sales in the first few weeks of the pandemic.

Increased Emphasis on Medical Benefits

Cannabis has proven to have a variety of health benefits. The use of cannabis as an alternative medical option has grown in recent years. As more state and local governments have legalized cannabis products, the number of people who feel comfortable using cannabis products continues to grow. People also enjoy the different types of cannabis products available.

One of its most well-known benefits is its ability to ease symptoms of anxiety and depression. Many people experience mental health issues during the early weeks of the Coronavirus pandemic. Anxiety and depression were common disorders. People were limited to their homes and were scared of the deadly virus. To improve their mental health, people began incorporating and increasing cannabis consumption. Many people who used cannabis during the pandemic had never used cannabis products before. Many first-time users have found that cannabis could help them and have incorporated it into their daily routine.

Increase in Recreational Cannabis Use

Recreational cannabis use has been on the rise since many states began to legalize products. With government shutdowns forcing businesses and schools to close, more people found they had more leisure time. To pass the time, people began to explore recreational cannabis use.

The number of people who consume recreational cannabis increased 5% during the pandemic. People also were consuming greater amounts of cannabis.

Despite the impressive growth, some states tried to limit the use of recreational cannabis during the pandemic. For instance, in Massachusetts, the state’s governor, Charlie Barker, prohibited the sale of recreational Cannabis products during the pandemic. He did this in an attempt to ensure that out-of-state cannabis buyers do not come to this state to buy cannabis products. Theory Wellness, a Massachusetts recreational dispensary, and other dispensaries were affected by this after the government deemed them nonessential. Later, several cannabis dispensary owners and medical cannabis patients sued Charlie Baker over the cannabis dispensaries closure. The closure of the dispensaries differed from other states that have recreational cannabis laws. California, for example, allowed for dispensaries to remain open as essential businesses.

It is hard to ignore how the COVID-19 has affected society and the economy. While many effects of the pandemic have been devastating, the cannabis industry has been an exception, with nothing positive growth. The Cannabis Industry's success and resilience have extended beyond the pandemic. The cannabis industry reported record sales for 2021, and many industry experts expect sales to double over the next four years.