4 Ways the COVID-19 Pandemic Transformed the Cannabis Industry

DISCLAIMER: Marijuana is not legal in all areas. BeerConnoisseur.com encourages you to check your local, regional and national laws before purchasing marijuana in person or online. BeerConnoisseur.com holds no liability of any kind, including financial, for any person(s) using marijuana resulting from information or web links contained on this website.

The cannabis industry has come a long way after getting legal status in many parts of the world. Much has changed for retailers, consumers and investors as cannabis gave up its shady reputation and emerged as a wellness winner. Even naysayers accepted the power of this herb after medical studies validated its efficacy for treating a host of medical conditions. While much was already on track for the industry, the pandemic came as the real game-changer. It brought widespread acceptance and growing trust, and much more. Let us explain the ways the pandemic has transformed the cannabis industry.

An uptick in retail sales

Not surprisingly, cannabis retail witnessed a massive uptick after the pandemic hit. People needed something to keep them sane amid the lockdown and social isolation. Cannabis became a savior, serving as a remedy for chronic pain, insomnia, and anxiety. It also kept their fitness motivation on track as they struggled to work out from home. Consumers embraced it as it is a better and safer alternative to painkillers, antidepressants, and sleeping pills.

Shift to the e-commerce model

Another notable change that the industry witnessed during the pandemic was a shift to the e-commerce model. Retail stores were initially closed, and the foot traffic remains low even as things improve. A majority of sellers picked the e-commerce model to keep the sales going. They continue to do so because consumers still prefer the ease and safety of doorstep delivery. It is a risk-free option that lets them replenish their stocks without stepping out and exposing themselves to the virus.

A move towards regulatory ease

Cannabis retail was declared as an essential business in the US, adding to the trust and credibility factor. Regulatory compliances were made easier for the industry during this period. When it comes to banking and cannabis, things are looking up. There are solutions to assist legal MRBs (Marijuana Related Business) by automating financial compliance. It means more banks will be ready to work with these businesses in the future, and financial compliance will get easier.

Changing consumer expectations

The industry has also seen changing consumer expectations in the new normal. Buyers look for variety in products as edibles, concentrates, and topical products emerge as the forerunners. Not to mention, conventional products like cannabis flowers and oil continue to be popular. Businesses had to expand their portfolios to keep up with the growing demand for new products. Consumers expect more from their shopping experiences too. They want to be safe in retail stores, and businesses have already implemented measures to ensure safety. Curbside pickups, contactless payments, and self-service options are popular solutions to facilitate in-store safety and social distancing.

The pandemic served as an opportunity for cannabis companies and retailers, and the future looks even brighter. But everything boils down to keeping pace with the trends and staying ahead of consumer expectations. It is equally important for businesses to be compliant with the regulatory norms. If they have all these fronts covered, nothing can stop growth, even during the crisis.