The coronavirus pandemic has dealt a massive blow to the economy, and experts say it will take years to recover to pre-pandemic levels. State governments ordered the closure of all non-essential businesses, coupled with social distancing and self-isolation to curb the spread of the virus, but these measures wreaked havoc on the economy. Several industries have been almost been brought to a standstill as the country waits for the virus to pass, resulting in millions of job losses. However, one industry that seems to be weathering the storm is cannabis.
Many states with legal cannabis programs declared the industry essential, allowing cannabis dispensaries to continue operations amid COVID-19 related shutdowns. In some states, home deliveries and curbside deliveries were also allowed to reduce contact between staff and customers. In the weeks leading up to the shutdowns, cannabis shops reported increased sales as customers stocked up for the coming weeks they would spend in self-isolation. And, as broader retail sales fell by double digits in April, cannabis sales stayed strong. According to data from BDS Analytics, some states reported higher numbers in April than in March when demand spiked.
In April, Oregon stood out among states that have legalized marijuana. According to data from BDS Analyitcs, there was a 40% sales growth in April versus 31% in March and 19% in January. States that have regulated medical marijuana programs but do not allow recreational marijuana had even stronger gains. Sales in Maryland doubled and in Arizona they jumped nearly 50%. Nevada’s cannabis industry is more dependent on tourism than other states, and it saw a 30% drop in sales.
The 20th of April, affectionately called 4/20, is the unofficial cannabis holiday, and it has seen increased sales in previous years. This year, however, the biggest pot celebration day fell smack dab in the middle of the coronavirus crisis, and sales weren’t as great as they could have been. In Colorado and California, sales were 62% and 55% above the year-to-date average respectively compared to 148% and 135% increases in 2019. According to data from Headset Inc., overall sales in Colorado, Nevada, Washington and California fell 22% from 2019.
According to wholesale cannabis marketplace LeafLink Inc., the average share of concentrate products (commonly found in vapes) increased 30% during the week after Father’s Day last year compared to the week before. However, the products that seem to generate more demand on Father’s Day were dad-friendly products like cannabis cigars, mocktails and resins. Surprisingly, lip balms saw a 79% jump while breath strips and sublinguals’ sales increased 55%.
This is likely to be seen by sector players like Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) as further proof of the economic benefits of having a regulated marijuana market.
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
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