As the coronavirus continues its relentless march across the country, businesses of all sizes are experiencing the detrimental effects from an erratic and slow economy. The cannabis industry is not immune to some of the same impacts other companies have suffered, though there are some positive outcomes as well.
Concerns in the Cannabis Industry
In the first weeks of the pandemic, cannabis customers flooded the industry with sales, stockpiling their supplies in anticipation of reduced access. After that initial jump, revenue levels declined, placing many of these businesses in jeopardy of closure, particularly the newer and smaller companies. Hardest hit have been those who operate small shops in areas normally visited by tourists.
While cannabis growers and sellers are eligible for federal relief, the funds have been notoriously difficult to obtain. Insurance claims are also on the rise, often resulting in longer processing times. The surge could also potentially lead to changes to policies that make it difficult to file future claims under circumstances such as the current coronavirus pandemic.
Hope for the Cannabis Industry
Not all news is bad news. While sales have declined in recent months, the industry is proving to be rather resilient. With the stresses caused in this time of COVID-19 and cannabis product benefits, states are recognizing these businesses as essential, allowing them to remain open during shutdowns. This important move wills potentially further catapult the industry’s legitimacy and legalization in the rest of the country going forward.