United States - A new study reports that cannabis sales have stabilized in 2020 at a rate 40 percent higher than in 2019, paving the way for further growth in a post-coronavirus world.
The cannabis industry will emerge stronger from the coronavirus pandemic than when the pandemic started. That includes new opportunities for cannabis entrepreneurs in states and countries that have already legalized and will soon follow.
Those are some of the findings mentioned in a recent report State of the Cannabis Industry, performed by LeafLink, Flowhub and Vangst. Each company approaches the cannabis industry from a different point of view: the wholesalers (LeafLink), pharmacies and dispensaries (Flowhub) and employment (Vangst).
However you look at the industry, it has been a great year for cannabis. After an initial explosion in cannabis sales when the pandemic started, record sales have continued in some states in the United States. The report found that national sales of cannabis are 40 percent higher than in 2019.
This stabilization indicates that after a pandemic, sales must remain strong. For example, officials in Michigan expect the market in their country to exceed $ 3 billion in the near future. Nationally, some projections call for a US $ 34 billion cannabis market by 2025.
Medical marijuana is also growing. The number of people in the United States enrolling in the medical marijuana program in their home state first surpassed 2020 million in August 3.
Voters in Arizona and New Jersey will also consider making recreational marijuana legal in their states on Nov. 3, potentially adding new markets to the industry for a large number of residents.
Those who prepared did the best
The report cited data showing that pharmacies and dispensing points in America with "pre-order" capabilities were better prepared to handle the sudden spike in sales once the pandemic started. In those dispensaries, sales were 22 percent higher than in dispensaries that could not order in advance. They also saw an 8 percent increase in transactions and a 13 percent increase in order amounts.
LeafLink noted that both emerging and mature markets contributed to the growth. For example, the report shows that both California and Colorado exceed 2019 sales. At the same time, emerging markets in Michigan and Oklahoma are among the most popular in the country.
The big difference is a change in the way consumers buy. Overall, the report found that cannabis users travel less to pharmacies, but buy more with each visit. Many of these transactions were done online as e-commerce became a more important part of the pharmacy business.
The cannabis industry has shown remarkable resilience.
One aspect of the cannabis industry highlighted in 2020 is the resilience of those who run marijuana businesses. When the industry was confronted with rapid changes, business operations also changed quickly.
The report found that 79 percent of pharmacies began offering sidewalk pickup and delivery services after the pandemic hit the US. About 64% went to a delivery strategy and 43 percent increased digital marketing and e-commerce strategies.
"2020 will be remembered as one of the most tumultuous years of our lives, as well as a pivotal year for the cannabis industry," Feldman wrote. "This year we faced some of our biggest challenges - and the industry is emerging stronger and more agile."