Coronavirus (COVID-19) outbreak across 110 or more countries has shown impact on every industry. Similarly, it has affected every person as well as every business worldwide with in some small or terribly large way.
In present time scenario, the worldwide cases are more than 8.4 million due to which the economy of the countries has started declining. All the industrial sectors of this country are facing challenges starting from raw material collection to procurement of the end product. One of the industries which have got an impact due to the outbreak is cannabis industry. The revenue generations by the companies or the banks in start of year 2020 were plummeted as the consumers’ demand has decreased and the major reason was lockdown.
Due to the lockdown, the biggest issue which was generated in this industry was supply chain disruption. Mostly, seeds and other products related to cannabis are imported from one country to other.
Another factor which has impacted the market is consumer behavior. Consumers are also not able to receive the products or seeds due to lack in the supply chain. For instance, patients with health issue are facing delays in the procurement of medicines of medical cannabis.
So, to gain market growth, various cannabis seeds providers are focusing in e-commerce retailing through which they can provide the required products to growers. Growers can easily go for indoor farming and this ultimately helps the companies to generate more revenue. But the prices for the cannabis have increased with double or triple number, due to which consumer preference is declining.
The COVID-19 pandemic has impacted all the industries worldwide. Moreover, demand is increasing only for essential product which declines the demand for non-essential things in market. And the dispensaries and cannabis shops were made close, but then, the public revolted in the name of public health. This has led the governing authority to put cannabis in the list of “essential” products. Dispensaries and cannabis deliveries were made open.
To fulfill the demand, manufacturers have started providing their products with online retailing and via store also. Online retailing has provided a scope for the market to gain substantial growth at the time of crises. Companies market share in this sector have taken a hike as they are fulfilling the increasing demand.
At present situation, cannabis companies have noticed that there is a change in buying habits as a result of the outbreak. Specially shift to edible products and away from those that require smoking. According to Squar Milne, it has been observed that, since March 2020, edible sales have increased from 15.0% to 30.0% whereas the sale of the plant has decreased from 25.0% to 17.0% and vape sales have also found to be diminished from 33.0% to 25.0%.
As of now, depending on the situation, the providers should be more focused on the health of the workers and the consumers. They should provide clean and high quality products and should pressurize authorities to legalize the products across the country, so that the consumers’ demand can be fulfilled through advanced technologies in this point of time.
In future, once the situation is under control, the demand for cannabis seeds in legalized countries for cannabis will drastically increase and it will help the organization to increase their revenue and ultimately this will lift up the market value.
The outbreak of COVID-19 has brought world to a halt where each and every industry has got an impact of it. This crisis has brought to an unexpected situation through which everyone is going on. With such unscrupulous situation, everyone is trying to get over of it.
In all, one of the cannabis related product industry which has fallen badly due to COVID-19 in start of 2020. But rising support from several companies as well as governments are helping the industry to rebuild the position again in market.
Various studies based on cannabis have been conducted which claims the cannabis extract psychoactive drug could fight against coronavirus.
The study has been conducted entitled “In Search of Preventive Strategies: Novel Anti-Inflammatory High-CBD Cannabis Sativa Extracts Modulate ACE2 Expression in COVID-19 Gateway Issues.
“Angiotensin-converting enzyme 2 (ACE2) has been generally accepted by the scientific community as a receptor required for the entry of SARS-CoV-2 into human cells.”
- Dr Igor Kovalchuk, CEO of Pathway Rx and holder of a Health Canada License for Cannabis Research
The burst of pandemic panic complements a steady rise in U.S. cannabis sales that investors have largely overlooked amid the financial debacles of better-known Canadian names like Aurora Cannabis (ACB) and Canopy Growth (CGC).
“The opportunity in Florida continues to be robust—to say the least.”
- CEO Rivers, Trulieve Cannabis (U.S.)
“Honestly, many medical-marijuana users are not in the upper economic stratosphere, They are using cannabis as a cheap form of pain medicine or for sleep maintenance.”
- Boris Jordan. Executive Chairman of the Board, Curaleaf Holdings, Inc.
"With so much of the country in quarantine right now, many are turning to self-care indulgences to keep themselves sane and even just pass the time, which is likely to help boost some CBD self-care products during quarantine time,"
- Brightfield Group Managing Director Bethany Gomez.
“People are just really relying on CBD for anxiety and sleep and stuff like that. We've just been seeing a lot of people really particularly need it right now.”
- Thomas Fisher, Founder of Botanic Alternatives
Various companies brand have shown a significant growth in online sales of CBD.
Gnome Serum a CBD brand has seen a 175% increase of online sales and average order sizes have increased nearly threefold.
“What’s been most interesting to me [is] as the warnings of COVID-19 became more evident to the general public, consumers started buying multiple products in much larger quantities, not unlike what one is seeing in grocery stores, “Our average order in March alone is up more than two-and-a-half times our usual. So, if a customer was used to buying one item, now they’re buying three of the same item.”
- Gnome Serum, CEO Greg Kerber
“The company’s online sales have increased 12% as a result of COVID-19. Exactus Inc. supplies dozens of brands globally with CBD products globally including products that are in CVS, Sephora, Urban Outfitters, and more.”
- Derek Du Chesne, the chief growth officer of Exactus Inc.
“COVID-19 is affecting literally every community worldwide, The doctors and nurses are in short supply, underworked and need as much help as possible. Hopefully all cannabis companies can make small contributions that, combined will make a large, positive impact”
- Crazy Calm, a CBD coffee company, Texas, U.S.
“Aleafia Health’s focus on disciplined, sustainable and scalable growth is more important now than ever with the launch of two major initiatives to adapt to patients’ needs during COVID-19.”
- Aleafia Health CEO Geoffrey Benic
“The pandemic has also dashed efforts by state lawmakers to legalize marijuana. New York Gov. Marijuana legalization was a priority for him. With his state now suffering the worst coronavirus outbreak in the US, he has walked that back.”
- Andrew Cuomo
“Thermometers have always been useful to have in the home, but now more than ever. As coronavirus continues to impact people around the globe, thermometers are a must-have for monitoring possible symptoms of yourself and your household. With fever as one of the hallmarks of a COVID-19 infection, having one of the best thermometers handy — one that you can actually rely on — is critical.”
“The spread of the coronavirus has necessarily shifted legislative focus while also reviving dialogue about legalization through a new lens. This article explores how the coronavirus-related disruption to cannabis regulatory efforts will impact cannabis businesses over the short and long term and what we can expect to see on the cannabis regulatory front for the remainder of 2020.”
- Eversheds Sutherland
COVID-19 pandemic has taken a toll on the global population and economy. A collaborative effort on governments, public health departments, and hospital fraternity to fight the coronavirus has led to economic slowdowns, global lockdowns, and extreme public safety measures. The public health measures include creating awareness about home quarantine measuring, maintaining food and healthcare supply, especially to the poor are being strictly followed by governments across the world.
Despite the pandemic situation, the market for cannabis has shown drastic growth due to its medicinal properties and consumer preferences towards cannabis-based products. The demand for cannabis-based food and beverage along with the smoking products is rising in the countries where legalization of cannabis is already done. Due to the medicinal properties of cannabis, the governments of many countries are focusing on legalizing the cannabis-based products; this is expected to drive the market for cannabis globally. Increasing the inclination of the younger population towards cannabis in various forms is also a major factor affecting the market for cannabis-based products.