The COVID-19 pandemic is one the most widespread and impactful crises we’ve seen in a century. Citizens around the globe are choosing to stay home for the sake of their health. In some cases, their government requires them to stay home.
The coronavirus has not only taken a toll on public health, but on the economy, especially small businesses. Today, we’re going to discuss the impact the coronavirus has had on the cannabis market and how cannabis growers are adapting to cope with the ever-changing challenges brought about by the pandemic. Check it out below.
Rise in Demand
In most industries, there has been a sharp decline in demand for certain products. This is not the case for cannabis. Luckily, the market for cannabis has in fact grown during the last few months. Cannabis sales in the United States have spiked in mid-March, around the time when the coronavirus situation was intensifying.
Reasons for Market Growth
Research company Market Research Future recently conducted a study on global CBD oil market growth. Their findings explain the factors behind the sudden demand in CBD products throughout the pandemic.
Their research found that rising cases of chronic diseases as well as associated complications have led to a rise in demand for CBD infused cosmetics. It also helps to note that marijuana was deemed an essential good in certain states. Despite the market growth, cannabis companies have encountered their fair share of challenges when adapting to the “new normal.”
As mentioned earlier, marijuana was deemed an essential good in certain states. Because of this, there haven’t as many lay-offs in the cannabis industry as we have seen in other markets.
In response to the high cannabis demand but limited work capacity due to restrictions, managers have been extending work hours to enable workers to labor during odd hours. This prevents too many people working closely together at any one time. The decrease in the number of workers present on-site allows for better implementation of social distancing Necessary equipment is also being sanitized regularly, in order to comply with work regulations.
Leaning on Tech
To prevent unnecessary in-person contact, some cannabis growers are relying on technology to facilitate communication. Though most companies still perform on-site work, many have shifted their team meetings to online platforms such as Slack and Zoom.
Companies are also looking into the next big step to minimize human contact, which is contactless delivery. Similar to the practices of large delivery companies such as Amazon, cannabis companies have required their employees to wear personal protective equipment when making deliveries and to not accept cash payments. Companies may look into POS solutions such as Yobi in order to facilitate smooth transactions.
Deutsche Welle. (n.d.). Cannabis in high demand amid coronavirus pandemic: DW: 05.05.2020. Retrieved June 01, 2020, from https://www.dw.com/en/cannabis-in-high-demand-amid-coronavirus-pandemic/a-53336180
Future, M. (2020, May 27). COVID-19 Impact on CBD Oil Market Growth, Size Estimation, Trends Analysis, Share Value and Global COVID-19 Analysis By 2024 |. Retrieved June 01, 2020, from https://www.medgadget.com/2020/05/covid-19-impact-on-cbd-oil-market-growth-size-estimation-trends-analysis-share-value-and-global-covid-19-analysis-by-2024.html
Schaneman, B. (2020, May 07). How cannabis growers are handling labor and safety challenges during COVID-19. Retrieved June 01, 2020, from https://mjbizdaily.com/how-cannabis-growers-are-handling-labor-and-safety-challenges-during-covid-19/