1-in-3 Cannabis Consumers Bought More in Response to COVID-19
March 31st, 2020
The COVID-19 outbreak has shut down large swaths of the economy and reined in consumer spending, but the cannabis industry appears insulated from many of these headwinds.
Nearly 1-in-3 cannabis consumers said there was an increase in their personal cannabis consumption in response to COVID-19, according to New Frontier Data. These consumers stockpiled flower (62%), edibles (29%) and vape cartridges (22%), while infused beverages accounted for another 7% of purchases.
Cannabis cultivation and dispensary operations have been labeled “essential businesses” across many states, which means that they are permitted to continue operating throughout the COVID-19 outbreak. While storefront sales may slow down in the near-term, there’s evidence that curbside pickup and delivery are on the rise.
In California, Leafly reports that the California Delivery Alliance saw sales spike across all of the state’s 200 or so licensed delivery services. Leafly also reported sales of adult-use cannabis in Washington were rising double-digits in mid-March with a double-digital increase in average basket value, suggesting consumers are purchasing more.
Headwinds for Other Cannabis Businesses
Cannabis retailers may be seeing strong sales, but there are some concerns that supply chain issues in China could impact availability. Many cannabis companies rely on packaging and other hardware from China, which has seen a significant slowdown in delivery times. These dynamics could jeopardize product availability at a critical time.
Many cannabis events have also been cancelled due to social distancing requirements. In early March, the popular SXSW event and its canna business track was cancelled and the High Times 420 Cannabis Cup, scheduled for April 18 through April 19, has also been postponed, putting some of these events at risk in the future.
Finally, the dramatic drop in tourism across states has brought cannabis tourism companies to a halt. Cannabis tours have been cancelled across many cities and states that depend on tourism to drive cannabis sales could see a slowdown in sales on a wider scale.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
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CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
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