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How COVID-19 Impacted the Cannabis Industry

Even before the COVID-19 pandemic, the cannabis industry has already faced some restrictions in terms of laws and regulations for cannabis. As some countries and states are still in the fight for the legalization of cannabis, the market for the said product is still as restricted as can be.

The Effect of the Pandemic

During the corona-virus epidemic, the world economy suffered adverse consequences. The outlook is so unpredictable that any industry patterns are difficult to predict. The decline of the decade was seen by many sectors, although several healthcare-related industries picked up overnight. Many have focused their attention on the recently legalized cannabis industry's success.

In comparison to this, there were long lines in front of pot shops, the corona-virus mostly attacks our respiratory organs so it may have been a cause for the cannabis lovers to give their smoking a break. 

The knowledge of the herb's possible medicinal attributes and different methods of inculcating it in edibles encouraged sales. If something, this herb's profits grew, influencing the weed industry. The overview below points out the effect of COVID-19 on the industry.

The original stockpiling by buyers has seen a sharp spike in sales from many cannabis dispensaries. Nevertheless, it came down at the same rate that the lockdown began to limit all except vital services.

With minor limits, the provision of merchandise in the cannabis shop and online is still strict. The bigger uncertainty when COVID-19 entered the market was whether or not Cannabis was an important drug.

How is the Cannabis Industry Doing?

Small Businesses Are Not Doing So Good

For starters, like in all industries, the first ones hit during the lockdown are small businesses. 

The distribution network was unable to withstand the lack of personnel and cross-border movement, causing a disruption to supply chain management. Ultimately, there were big consequences for small companies with little storage. 

Vendors who circulate daily earnings to plow back into the enterprise are facing tremendous uncertainty. Unfortunately, the pandemic could not be sustained for all of them and they had to close down their businesses or search for diversification.

Online Sales Have Progressed

As the global scarcity of cannabis supplies started to even out, the coronavirus epidemic created instability in current market trends. Cannabis has been included in the list of recession-resistant goods since experiencing significant market trends, including during disruptive periods. 

The passion of cannabis lovers did not discourage factors such as small movements, faulty supply chains, categorization under non-essential products, and closing of dispensaries, and demand continued to grow. 

New users have been seen in countries where only medical marijuana is legalized, although some others have had to ban the distribution of commercial cannabis in order to stop the surge of consumers.

This has opened new doors to the online sales of the product, which is now a benefit for most cannabis businesses to reduce physical contact.

Prices Continue to Grow

Like the rule of supply and demand, when the supply is hard to come by, prices shoot up. There was an increase in cannabis prices and in some countries seeing it as double or triple the normal amount, 

There are several explanations for this sudden inflation. One is the delayed method of cultivation due to the absence of suppliers of raw materials and cultivation that typically comes from a third party or international vendors, often China. 

It is notable that China is the first nation to experience the adversity of coronavirus, with the termination of its cross-border movements earlier this year. Another big price spike is attributed to manufacturers loading up on their inventories, expecting high demands and higher potential earnings

Conclusion

While we continue to stay safe in our homes, the best way to stock up on everything we need and want is through online shops.

It’s a good thing that your trusty cannabis accessories partner, QuikfillRx is just a few clicks away. Though the cannabis industry experienced a shock during this pandemic, the forecast in the next few years provides us with the knowledge that demand will be high.


Check out QuikfillRx and check out our wholesale opportunities today!

 

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