The world economy faced adverse effects during the coronavirus outbreak. We are faced with an uncertain future that makes it impossible to forecast market trends. Numerous industries have witnessed a huge downfall while healthcare industries have picked up overnight. Through all these, many of us have started looking into the performance of the newly legalized cannabis industry.
Because the coronavirus mainly impacts our respiratory organs, it can be a reason for cannabis lovers to take a break from smoking. Contrary to this, however, we are seeing even more people queuing in marijuana dispensaries. Apparently, the awareness of this plant’s healing properties and the many ways in can be infused in food and beverages seem to surpass the hinge. Sales of this herb have increased, if anything, variably impacting the cannabis industry.
Various countries reported variable responses.
Countries like Canada consider marijuana as an essential item and are kept functional in cannabis shops all this time. It was reported that the industry witnessed huge profits during the coronavirus outbreak. It is very easy for anyone to order concentrates, edibles, seeds and other weed products online or from a dispensary. In Italy, Italians objected to the closure of vaping shops, demanding their reopening. Overall, the response to the cannabis market greatly varies from one country to another, depending on their policies and they opt to categorize the product.
General demand shows a positive trend.
The worldwide shortage of marijuana supply was only starting to level out, but the coronavirus outbreak created chaos in current demand patterns. After seeing huge demand during disruptive times, marijuana is showing that it is a recession-resistant product. Factors such as faulty supply chains, restricted movements, non-essential item categorization and dispensary closures have not deterred the enthusiast of weed lovers, and the demands remain high. In countries when only medical cannabis is legal, new patients are emerging, while others are restricting sale recreational weed in others to avoid the influx of customers.
Small business are facing hardships.
There are some places where cannabis is considered a non-essential item, causing big agitation among regular users. This situation is not only limited to buyers; even small vendors are facing this trouble as well. With this pandemic, small business owners are facing shortages in supply, leading to unmet demands. Logistics are not able to withstand manpower shortage and cross border movement, disturbing the supply chain management. Vendors who circulate daily earnings are facing instability so many of them are not able to sustain in the pandemic and have to shut down their operations.
Online sellers are enjoying a huge influx of sales.
Each coin has two sides. Small weed sellers might be suffering from major repercussions, but online sellers are the complete opposite. Many of these platforms reported at least double their sales with incomes matching that of festive and Christmas sales. Most of them are even offering discounts and freebies to attract customers. In fact, many are seeing an expansion happening soon as they are planning to deploy better delivery partners and increase their manpower.
Prices are increasing and they might continue to do so.
We are seeing a rise in the prices of marijuana, with some states seeing it double or even triple the usual price. This sudden inflammation is because of varied reasons. One is the delay in the cultivation process because of the lack of raw material and cultivation supplies that mostly comes from foreign or third-party sellers. Another reason is that vendors are stocking up on their inventories as they anticipate high demand sand profits in the future. Then there is also the lack of manpower because of the worldwide lockdown and the high cost of transportation, both of which have a big impact on the procurement and distribution prices of cannabis, shifting the burden of the cost-price on the end buyer.
Unlike many other industries, the weed industry has managed to swiftly sail through the outbreak. The demands remain to be very high, even surpassing the limitations of other resources, thanks to the beneficial properties of this amazing herb.