The spread of COVID-19 and the measures being taken for the health and safety of everyone have caused major disruptions in everyone’s daily lives. Parents have had to balance working from home and fill in as teacher for their children all at the same time. Businesses have had to close their doors and scramble to navigate the online business world and offer pick-up options. Entire industries have been brought to their knees as companies lay off workers and struggle to gather enough cash just to pay the bills.
While the health risks posed by COVID-19 are evident, the full implications of the economic situation have yet to be fully realized – and will likely be felt for years to come. The cannabidiol (CBD) industry is no exception. It is too early to know what the long-term effects will be, but there are several trends that have emerged over the last few weeks.
Boom in CBD Sales
As social distancing swept the nation, there was a boom in CBD sales. Like other businesses, cannabis and CBD experienced its share of panic buying. People rushed to their local dispensaries to grab products in case they were to become no longer available. In Colorado, for example, dispensaries experienced better than average sales even once the social distancing measures were in place.
Cannabis Declared Essential
The rush did subside when states began declaring cannabis dispensaries as essential businesses. At first, people rushed to stock up on both medicinal and recreational products not knowing how their city and state governments would classify their local dispensaries. Cannabis dispensaries were permitted to stay open as long as the businesses implemented safe social distancing practices.
Mixed Reactions from CBD Companies
The short-term rush of sales was good for cannabis companies. However, like any business type, these companies can only operate smoothly for so long if the economic troubles continue long-term. Some CBD companies have chosen to operate business as usual, while others have decided to halt or slow production in order to cut costs and prioritize employee safety.
Need for CBD Grows
Many people have been grateful for the continued access to CBD products to treat a variety of medical conditions. Others have appreciated the cannabinoid’s anti-anxiety and stress relieving effects during these uncertain and stressful times. Some CBD companies have even offered their help to the public by producing hand sanitizer in their facilities.
A Defining Year for the Cannabis Industry
It goes without saying that the cannabis industry has seen its fair share of up and downs. As CBD companies adapt to the current situation; innovate their approach to production and distribution; and strive to meet consumers’ needs during these times, it will likely encourage long-lasting changes to how the industry operates as a whole. A stronger, more resilient industry could emerge on the other side of COVID-19.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, with the highest rated CBD merchant account in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.