Sars-Cov-2, informally Coronavirus or Covid-19, is wreaking havoc across the globe. Nobody is immune to its economic impact, from now-closed small businesses to large companies struggling to supply consumers and keep employees safe. The cannabis industry is no exception, but there are some notable positives in an otherwise dismal economy, as well as some long-term implications for all involved.
The effect of the lockdown is immense across all sectors. In response to the virus, authorities implemented measures to prevent its spread, which include social distancing, mask and glove wearing, and staying at home. Of course, such measures mean only some folks are working, those providing essential services. Industry has come to a grinding halt.
However, cannabis stores remain open, as well as weed delivery services. According to the Los Angeles Times, California Governor Gavin Newsom emphasized the health benefits of marijuana make it an essential service and that they outweigh the risks of staying open. Although some call this move reckless, most are in favor of having pot during lockdown, but the virus has several impacts nonetheless.
Disruption of Supply Chain
Despite an overabundance of cannabis in California, and the United States overall, the Covid-19 sure did expose just how vulnerable its supply chain really is. This is especially true for companies sourcing stock from markets overseas, like hardware for vaporizers, packaging, and other accessories. When China shut manufacturing at the outbreak’s start, folks began looking domestically for supplies.
However, these local alternatives proved practically nonexistent. Now that China is reopening its factories, companies sourcing from Asia and other global sources will soon resume supply. It will take longer, though, and include notable anxiety about the security of the supply chain during major disruptions. For some, this offers a massive opportunity to begin domestic manufacture of these items.
Reliance on Marijuana Delivery
With folks stuck at home and stay-at-home orders enforceable, most are turning to weed delivery. This is not a new trend by any means, but it is certainly more popular than ever before, and likely to remain so long after the pandemic subsides and life resumes some semblance of normality. Marijuana delivery is fast. It is reliable, safe, and presents consumers with big advantages over brick-and-mortar shopping.
You can find a much larger product selection online than you could instore. Delivery companies source from many different suppliers and have no space or other limitations that storefronts face. What is more, many suppliers sell direct to the public, and many offer opportunities to save money if you buy online, such as access to more coupons, discounts, promotions, and other cheaper options.
Focus on Concentrates
The pandemic is making cannabis users rethink the products they buy. According to the Centers for Disease Control and Prevention, Covid-19 is a coronavirus causing acute respiratory distress. For this reason, consumers worry if smoking might contribute to their risk or the severity of the illness should they get it. Fortunately, you do not have to smoke marijuana. Other products are widely available.
Of particular popularity are cannabis oils and edibles. Concentrates come in a variety of different forms. Besides cannabinoid-infused oil and ingestibles, there are also capsules, tinctures, topicals, and even feminine hygiene products. Not all of them contain tetrahydrocannabinol, or THC, but many do. THC is the psychoactive compound that makes you “high.” If buzz is what you want, look for THC on the label.
Opportunities for Real Estate
Before the pandemic, it was normal for cannabusinesses to spend upwards of six figures on making improvements that enhance the consumer experience. While this spend is currently on hold, it might prove very beneficial at lockdown’s end. Since many businesses are folding and defaulting on rentals, shopping centers and other lucrative locations might look for higher-paying tenants.
Companies with expansion ideas or desires to rent new space might find the Covid-19 era with better real estate deals. Not just storefronts either, but laboratories that test cannabis products and concentrate manufacturers could also benefit enormously from spaces the pandemic leaves empty. Cannabusinesses have a unique negotiating position to look forward to post lockdown.
Find “Weed Delivery near Me”
Because marijuana delivery is now the preferred method of cannabis procurement, it is imperative you protect yourself from online fraudsters or companies that peddle inferior quality. Research is paramount. When searching “weed delivery near me” in Google and other engines, check each company for reviews too. Other people will tell you exactly what kind of business it is and if you can trust it.
Your articles are the best.. I had no clue Cannabis was also impacted, seeing all the stores open, you wouldnt think so
In lock-down, the cannabis product must be selling continuously!
Good read. Corona Virus is effecting everything
Yep, that about sums it up
Crazy how all the Cannabis stores get to stay open! I like my pot but, hardly an essential service
Great read about cannabis during this crazy situation!
Appreciated understanding how Covid has effected Cannabis. Great article
Covid has effected business differently, delivery is obviously picking up