The past few weeks haven’t been easy for most industries, starting as soon as parts of China started locking down to curb the spread of the Coronavirus. It quickly became apparent that a lot of industries rely on China for cheap raw materials, and as factories slowed down manufacturing in the country, most industries were faced with supply chain disruptions.
At the moment, the virus has infected over 1.9 million people and claimed at least 120,000 lives. Governments have been scrambling to flatten the curve, but most of the Coronavirus measures have wreaked havoc on the economy. However, one industry that’s still going despite the pandemic is cannabis. Marijuana dispensaries saw an almost 160% spike in demand, and most states with legal marijuana have deemed the sector essential.
With most cannabis businesses registering increased sales as millions of people file for unemployment and the economy slides into a recession, some have suggested that the industry may be recession-proof. Here are a few trends that say they might be right;
More people see cannabis as a medicine. Cannabis has always gotten a bad rap, with most anti-marijuana proponents arguing that it is a gateway drug. However, the decision by numerous state governments to declare cannabis essential was a game-changer. Among its very many medicinal applications, cannabis works great against stress and anxiety, making it a perfect companion during stressful times such as these.
Solitary consumption has always been a plus for marijuana. Although group sessions can be fun, they aren’t encouraged due to the Coronavirus pandemic, and marijuana lends itself beautifully to home consumption. Alcohol tends to be a social drug, and there have been a few cases of people meeting up for a pint despite the lockdown.
It doesn’t require a complex supply chain. Sure, companies that make vapes may rely on China for certain parts, but the marijuana itself is homegrown. And seeing as the virus attacks the respiratory system, you shouldn’t be smoking anyway. Most cannabis businesses that don’t rely on vape sales still have most of their supply chains intact, allowing them to keep operating during the lockdown.
Cannabis delivery services have experienced an upsurge of over 85% in demand the past few weeks. States such as Maine and Illinois have approved home delivery of marijuana as a way of reducing contact between employees and customers. With most people stuck at home, any business that can deliver will have an advantage over one that can’t.
Drug use often increases during times of financial difficulty. In fact, there is a long history of alcohol enjoying healthy sales while other industries declined, and cannabis seems to have joined this elite club. And while alcohol barely has any medical benefits, cannabis does, and it is a lot safer than alcohol. Its ability to reduce stress and anxiety makes it an invaluable companion to people looking for a safe drug to help them get through the pandemic.
Experts believe that cannabis industry actors like The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) are seeing how they can pivot their strategies to take advantage of these emerging trends.
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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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