The Impact of COVID-19 on the Cannabis Industry
By Charles Alovisetti, Sahar Ayinehsazian, Andrea Golan
Nov 5, 2020
Covid-19 and efforts to contain it have led to significant downturns for several industries. The cannabis industry, however, has experienced more of a roller coaster ride than a freefall. There have been ups and downs and rapid shifts in environment, all while the underlying structure (the economy) is teetering on the verge of collapse. In spite of Covid-19, or perhaps because of it, the cannabis industry is thriving, and will continue to do so as long as demand remains strong and operators adhere to the rules and regulations designed to keep consumers and employees safe.
This article will detail the impact of Covid-19's “essential business” designation on the cannabis regulatory landscape and how these regulatory changes are likely to shape the industry moving forward. In addition to the shift in the regulatory landscape, this article will explore how Covid-19 has transformed consumer demand. The demographic of the traditional cannabis consumer is expanding and Covid-19 is causing significant shifts in how consumers are spending, what they are buying, and when. This article is the second in a series about current trends in the cannabis industry. The first article explored raising private capital in the cannabis industry.
Reproduced with permission. Published November 2020. Copyright © 2020 The Bureau of National Affairs, Inc. (800-372-1033). www.bloombergindustry.com.