The sales gains recorded in the marijuana industry after business lockdowns following the 2020 pandemic seem to be long term, with executives noting that the pandemic may have produced a new group of consumers who are trying out or using cannabis to relieve stress among other reasons. Industry executives forecast that as the U.S. economy slowly reopens and people are allowed to begin taking trips and visiting restaurants and stores, consumers of marijuana will shift their purchases in favor of discreet consumption forms such as vape pens and edibles.
A study that was conducted recently by the National Federation of Independent Business found that the small-business optimism index had grown by almost three points last month, hitting 102.5. This is the first time the index has gone above 100.
C3 Industries CEO and co-founder Ankur Rungta stated that the marijuana industry was continuing to develop, adding that he viewed the surge in sales during the pandemic lockdown period as the new baseline. C3 Industries is a vertically integrated cannabis firm in Michigan that also has operations in the state of Oregon. Rungta noted that the cannabis industry gained a lot of new customers during the pandemic, which led to marijuana acceptance increasing.
During the coronavirus lockdown, marijuana companies saw record sales across almost every state market in the country. At the time, marijuana business owners attributed the increase in sales to individuals spending their stimulus checks on marijuana while staying home, instead of engaging in other recreational activities such as traveling, going to the movies or visiting restaurants.
Now that restrictions in various states have been lifted or paused, cannabis companies expect customers to begin buying items such as vape pens, which are easier to use and more convenient for traveling. They also expect to see an increase in in-person shopping.
Michael Perlman, executive VP of investor relations and treasury at Jushi Holdings, says that as consumers become more comfortable with travellng and dining out, the company has observed an increase in activity around and in their downtown dispensary locations, which it attributes to overall increase in foot traffic. Jushi Holdings is a multistate cannabis company based in Florida that has dispensary locations in about half a dozen states.
Data released by Headset, a cannabis analytics firm based in Seattle, also shows that while recreational cannabis sales in some states has begun to flatten, sales still remain above levels recorded a year ago. For instance, adult-use cannabis sales in the state of California declined by 0.8% in May before increasing in June, with data showing that sales were still up by 10% in comparison with 2020’s sales in June.
Players in the cannabis sector such as Grapefruit USA Inc. (OTCQB: GPFT) may also need to be credited for this positive trend of marijuana sales since consumers spend on products they deem to be of an acceptable quality and price.
NOTE TO INVESTORS: The latest news and updates relating to Grapefruit USA Inc. (OTCQB: GPFT) are available in the company’s newsroom at http://cnw.fm/GPFT
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