COVID-19 Impact on Pharmaceutical Packaging in Chemicals and Materials Industry

COVID-19 Impact on Industrial Hemp in Chemical and Materials Industry

  • Chemical and Materials
  • Feb 05, 2021

Industrial hemp is a type of plant which is related to cannabis species and it is used worldwide to create various types of industrial products for the consumers. Hemp is an origin of fiber and oil seeds grown in more than 30 nations. In the U.S., hemp production is controlled under drug enforcement laws.

The hesitancy between marijuana and industrial hemp are similar based on visual and widely differentiated on the basis of varieties of cultivation of plants.

Impact of Covid-19 On Hemp Oil

COVID-19 has highly affected the demand of the hemp oil and CBD oil market as according to many studies conducted by team of scientists in Canada, CBD oil can boost the immune system and can help to fight against COVID-19 to help prevent and treat coronavirus infections. After the paramedics, marijuana or cannabis shops and industries are essentially considered as pharmacies, reflecting a shift in cultural perceptions about the usage of cannabis. The overall trend reflects the mainstreaming of marijuana in the U.S. society with state and local governments increasingly recognizing the value and benefits of medicinal marijuana in COVID-19 pandemic. The growth of cannabis is increasing, widely owing to COVID-19 crisis as in the U.S., new consumers are emerging and adopting cannabis drinks for boosting their immunity and also medicines made from marijuana or cannabis as these medicines are widely adopted to reduce the body pain.

Impact On Demand

Due to the pandemic, there is a huge demand of hemp oil and CBD oil. Cannabis companies are seeing record-breaking numbers of orders and higher-than-average total purchase price per customer. When the risk of COVID-19 fades, the financial impact will remain for a long time as the sick or infected people will use their own grown medicines.

Sales in Denver on March 23rd, 2020 were up by 392 percent over the same weekday prior to the stay-home order. After the state forced in-person retail operations to close, a Reno delivery service saw a 400 percent rise in revenue. In the U.S., places that had legalized sales, the determination of retail store closing or staying open as vital infrastructure or urgent medical needs was inconsistent.

After the lockdown in the country, cannabis dispensaries experienced a significant rise in sales and new customers.

For instance,

  • In March 2020, the Orange County Register noted the increase in the overall sales by 30% in one week.
  • In California, Oakland-based marijuana delivery service registered tripled the sales in one week.

Impact on Supply Chain

Supply chain has been affected more due to the COVID-19 lockdown. Manufacturers are not being able to clear the old stock in the inventory and not able to manage the future demand of the marijuana grow kits in several industries which are impacting the North America marijuana grow kits industry for recreational. Due to the lockdown, there is a shortage of supply as most of the countries sourced indoor growing facilities products such as grow lights, pots and other agricultural commodities from other countries and the disruptions led to an anticipated 2- to 3-month delay for the grow kits materials.

According to the report published by Business Reader, cannabis companies registered the highest numbers of orders and higher-than-average total purchase price per customer. Due to the lack of labors in pandemic situation, the demand of the cannabis oil such as hemp oil and other CBD oil could not be fulfilled. Such panic-buying is exacerbating supply chain bottlenecks and driving cultivators to order more cultivation supplies in anticipation of continued demand for cannabis.


Hemp oil is also a major part of cannabis industries. As in the U.S., the cases are more than 2 million due to that, most of the production got hit and have created a situation of panic in the U.S. Thus, to maintain the demand and supply, various strategic decisions have been taken for the manufacturers.

For instance,

  • The executive director of National Organization for the Reform of Marijuana Laws said, “Cannabis or marijuana is a safe, reliable and effective treatment that millions of consumers can rely for maintaining their daily lives while suffering from diseases and ailments.”
  • In April 2020, Leafly, the U.S. based cannabis website launched a cannabis delivery service for Arizona, Florida, Maryland, Michigan, Nevada, New York and Oregon.


In 2020, COVID-19 causes the high demand of cannabis oil such as hemp or other CBD oil to enhance their immunity while having the drinks and product containing cannabis oil and the medicine made from cannabis will help to fight against COVID-19 as most of the medical manufacturers are widely adopting marijuana in the manufacturing of pain relief and other medicines but due to the shortage of supply and increased demands, there can be the price hike of marijuana products and even the grow kits products and the factor will drive the industrial hemp market growth.