Dec 15, 2020
COVID-19 Impact on Medical Cannabis in Healthcare Industry
- Dec 15, 2020
COVID-19 Impact on Medical Cannabis in Healthcare Industry
The COVID-19 has posed a complex challenge in front of different companies that are using medical cannabis to produce health care products, which has badly impacted the worldwide market. However, it has boosted the growth of companies involved in vaccine development and moreover various studies are being conducted so as to use the medical cannabis in the treatment of COVID-19 due to its anti-inflammatory properties, as there is great need of vaccine which can act against Coronavirus and prevent this deadly disease so various major players of the markets are coming forward so that a novel vaccine can be produced as early as possible.
The COVID-19 has resulted in a number of countries imposing restrictions on several aspects of healthcare that have impacted several markets and their economies. The overall revenues for the market are somehow less affected even in these pandemic situations because of its medical benefits. The market is propelling because of its benefits in the chronic diseases.
Many experts suggest that medical cannabis can aid with the treatment of COVID-19, as previous study has shown that a variety of pro-inflammatory cytokines, including IL-6, can be decreased by CBD, which is reduced by several other medications being investigated for the treatment of COVID-19. And the CBD is undergoing numerous studies so that a perfect vaccine can be made.
The price is not impacted significantly as several entities are using the medical cannabis in a large amount due to its various advantages in treatment of various diseases. But in some places the price is increasing a little bit due to the dry supply in the areas where the medical cannabis is imported.
IMPACT ON DEMAND
Despite the COVID-19 pandemic, the medical cannabis demand is still increasing some areas. Like the European medical cannabis demand is strong and continuously growing at a very good speed.
But due to COVID-19 pandemic the legislation efforts in various countries is hampered, which is somehow the main reason for delay in demand drives the consumers towards the unregulated market. Mainly the demand for medical cannabis is increasing from the European countries and the markets mainly serves around 5.9% of total population of 28 European countries.
Medical cannabis have shown a lot of changes in the treatment of a diseases due to its anti- inflammatory properties, that’s why many countries are trying to legalize the production and usage of medical cannabis but only in healthcare market. Also a similar growth is seen in the U.S. market as consumers have stocked up the medical cannabis. Since medical cannabis is consumed alone, the majority of consumers are opting to consume the medical cannabis by themselves.
Now there are various innovation and evolution in the production of medical cannabis so that the drug doesn’t cause any side effects and can be produced in the form of edibles or infused products.
IMPACT ON SUPPLY CHAIN
Due to pertinacious COVID-19 lockdown, sanctions have been imposed by governments of various countries. These restrictions and barriers across countries borders led to a decrease in supply of medical cannabis across borders.
The COVID-19 outbreak has disrupted the supply chains for medical cannabis, and in coming few months it will be challenging to maintain the supply chain. Health services, including the time and attention of healthcare practitioners, are in limited supply and are geared towards handling the spread of the disease. Some regions or areas that were totally depended on the imports from other regions will face various challenges in coming time due to restrictions in border and even the staff will be unavailable.
The trade restrictions have impacted the market inversely. Since the demand is increasing for the medical cannabis in the healthcare market the government will try to improve the growth of supply chain, and also will take various decisions so that the medical cannabis is used for betterment of individuals only.
STRATEGIC DECISIONS FOR MANUFACTURERS
The leading players are collaborating, expanding their business in various regions and even taking more crucial steps in advancement of R&D.
- Cresco labs have expanded its business in the Ohio market by acquiring four dispensaries.
Several research institutes and medical cannabis producers are working together in the coming months to create a novel vaccine for the treatment and prevention of COVID-19 disease.
The manufactures are also paying a lot of attention in the development of innovative products that can be used for the desirable effects. Also the manufactures are more focused on the production of medical cannabis products that are related to health care only, so that the demand from hospitals and various researches intitule can be increased in this pandemic.
Companies operating in the market are adopting several strategies, including collaboration, agreements, partnership, and market expansion to enhance their business. These strategic decisions by the companies are expected to provide significant opportunities for the market players operating in the vaccine market.
The coming months can be considered challenging for manufacturers. Supply chain managers might want to consider dealing with OEMs that are able to overcome market disruptions. Manufacturers need to take necessary steps pertaining decisions regarding production processes, shifting to other facilities if needed, changes in quality assurance, costs and processes related to screening of workforce and offering of care if required, changes in working hours, and others.
The demand for medical cannabis is expected to rise in coming few months due to legalization in various growing markets. However, the demand will stay unaltered due to the benefits of medical cannabis during the COVID-19 pandemic. The existing market leaders holding major share in the market that are cash rich and have strong strategic teams will be least impacted.. However, as the situation eases, the sales will bounce back. Taking strategic steps will help the companies to exhibit planning and demonstrate stability to the end users.
Moreover the legalization of medical cannabis in the healthcare market will be a boom for various manufactures, as the demand will increase and so as the supply chain will be improved.