In early 2020, the COVID-19 pandemic hit, causing a global lockdown. Many businesses shut down as well and did not make it through the lengthy closures. Almost 4 years after the pandemic spread, some businesses still feel the effects, whether short-staffed stores or major profit loss. By the second half of 2020 alone, more than 400,000 businesses closed, accounting for millions of jobs lost. However, some industries have benefitted in some ways from the pandemic.
Cannabis is an example of an industry that has grown significantly even amid mass isolation. Today, cannabis is a multi-billion-dollar industry. This is greatly due to the continued state legalization across the country and the opening of many dispensaries in legal states. In 2022, legal cannabis sales exceeded 21 billion dollars and are anticipated to continue growing. Economy experts project that the cannabis industry could reach between 70-100 billion dollars by the year 2030.
Additionally, the COVID-19 pandemic may have played a part in its growth as well.
Isolation-fueled cannabis use
During the lockdown, stores and restaurants closed, schools shut down, and some were unfortunately separated from their families and friends. For many years, cannabis use has been seen as a relaxation tool. Whether it is being smoked, consumed as an edible, or used in a cosmetic product, isolation was made easier with cannabis for a lot of people.
Medicinal cannabis usage may have increased
While it’s always best to discuss medicinal marijuana use with a primary care physician, the use of cannabis to relieve symptoms of certain conditions has appeared to increase in popularity. Studies show that there was a 25% global increase in depression and anxiety during the pandemic as mental health declined for many people. Because so many people spent lockdown alone or away from most of their families, they turned to cannabis products. Cannabis oil in products such as creams or lotions is said to alleviate chronic pain in some people, including physical pain that may be caused by extreme stress or anxiety. Some cannabis oil products infused with common relaxing scents such as lavender, can also promote calmness.
More dispensaries opened as many businesses closed
In recent years, thousands of dispensaries have opened and are successful while other businesses unfortunately did not survive the pandemic. As more states legalize marijuana, dispensaries offer an easy and accessible way for customers to purchase marijuana products legally, including beverages, pre-rolled joints, edibles, and more.
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References
Decker, R. A., & Haltiwanger, J. (2022, May 6). Business entry and exit in the COVID-19 pandemic: A preliminary look at official data. Board of Governors of the Federal Reserve System. Retrieved October 16, 2023, from https://www.federalreserve.gov/econres/notes/feds-notes/business-entry-and-exit-in-the-covid-19-pandemic-a-preliminary-look-at-official-data-20220506.html
(2023). Legal Marijuana Market Size, Share & Trends Analysis Report by Product Type (Flower, Oil, And Tinctures), By Application (Medical, Adult Use), By Region (North America, Europe, APAC, LATAM, Africa), And Segment Forecasts, 2023 - 2030. Grand View Research. Retrieved October 16, 2023, from https://www.grandviewresearch.com/industry-analysis/legal-marijuana-market#:~:text=The%20global%20legal%20marijuana%20market,the%20growth%20of%20the%20market.
(2023). Cannabis. Statista. Retrieved October 16, 2023, from https://www.statista.com/markets/415/topic/2436/cannabis/#statistic1
Dorbian, I. (2022, March 24). U.S. Cannabis Sales Could Top $72 Billion By 2030, Says Leading Researcher. Forbes. Retrieved October 16, 2023, from https://www.forbes.com/sites/irisdorbian/2022/03/24/us-cannabis-sales-could-top-72-billion-by-2030-says-top-researcher/?sh=539dde24148c
Kupcova, I., Danisovic , L., Klein, M., & Harsanyi , S. (2023, April 11). Effects of the COVID-19 pandemic on mental health, anxiety, and depression. National Library of Medicine- National Center for Biotechnology Information. Retrieved October 16, 2023, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10088605/#:~:text=According%20to%20the%20World%20Health%20Organization%20(WHO)%2C%20since%20the,behavior%20%5B14%E2%80%9318%5D.