Whether you’re a “New Years’ Resolutions” setter or not, I think it’s safe to say that 2020 isn’t looking like any of us expected.
The arrival of a global pandemic was a curveball that has affected everyone’s life to varying degrees, ranging from minor inconvenience to horrific loss.
Of all the unexpected elements of COVID-19, perhaps the most surprising is that during a time when business around the globe ground to a halt, cannabis was deemed “essential”.
The fact that recreational cannabis (which is still illegal on the federal level and in many states) was determined to be one of the few businesses important enough to the function of society to be allowed to continue operating was, to put it lightly, ironic. It was also a silver lining to a thing that has very few silver linings.
While the global events of this year are sure to become chapters in history books yet to be written, this designation of cannabis as an “essential business” is extremely significant in the relatively new, turbulent, and rapidly evolving industry. While businesses of all sizes around the world are having to permanently shutter their doors, canna companies have been gifted an opportunity to strategically pivot their business plans to stay afloat during this time while simultaneously helping society ride out the rollercoaster of this crisis by providing whatever it is that draws each consumer to cannabis products, be it anxiety relief or simply a distraction.
While long-term effects of the designation of cannabis as “essential” are unknown, we can hope that this will encourage other states toward legalization. At the very least, states could be encouraged toward this by the promise of tax revenue as they struggle to crawl out of the severe economic downspiral that is an inevitable aspect of something like a pandemic. Industry professionals hold a few other hopes for things that will come out of this, including loosened regulations, continued allowance for home delivery and curbside pickup, relaxed investment restrictions, and an overhaul of nationwide restrictions such as access to banking and tax equity.
Despite the economic concerns Americans are facing on the individual level, cannabis sales are up in some states which provides interesting insight into the role of cannabis in consumers’ lives. In California, recreational cannabis revenue numbers reached a record high of $348 million in July of this year. Not all consumers view cannabis as essential during a pandemic, however, and other jurisdictions – such as Colorado and Nevada – have seen a decline in sales.