Coronavirus caused boom in legal marijuana industry in the US

US, WASHINGTON (ORDO NEWS) — While the service industry is undergoing a crisis caused by the coronavirus, the marijuana industry in the United States is growing rapidly. A huge number of people are sitting at home and worried about their future, which stimulates the growth of cannabis sales. In 2020, its US sales can reach $ 16.3 billion (31% more than in 2019), explains Forbes. If you’re one of these people sitting at home not doing anything then you may want to click here to find a dispensary that provides high-quality products. This can not only help with boredom but also reduce any stress or anxiety you may have. COVID has caused millions of people to experience stress over their job, health, financial situation, etc. so it’s normal for people to find ways to deal with this.

On April 15, five days before 420 (April 20), which is an international subculture associated with marijuana use, approximately 1,500 people visited four Medicine Man dispensaries (marijuana stores) in and around Denver, Colorado. This is 40% more than usual. The flow of customers was slow: only 10 people could be in the store at the same time due to the rules of social distance. The yellow stripes on the floor every two meters helped people to stay at a safe distance from each other, while the country was affected by the COVID-19 pandemic. Most buyers have completely exhausted the state limit, which is 30 grams of hemp flowers.

Sally Vander Veer, co-founder and CEO of Medicine Man, says the day many Americans received checks as part of their federal stimulus program was as successful as 420 last year.

A month earlier, when Colorado authorities ordered residents to stay at home, panic began, and cannabis sales jumped 30%. Vander Vir says she believed the pace would slow down soon and peak again on April 20, as it always does, but demand remains uncharacteristically high. It is precisely the situation when a huge number of people are sitting at home and worried about their future in combination with 420 that brought sales to a record level, she said.

“We joked that 420 would last all month because it was April 2020, but the joke turned out to be true,” says Vander Vir. “If you look at the daily sales volume, then in April we are witnessing, perhaps, a more stable and long-term increase in sales than ever.” She continues commenting that other dispensaries are seeing a similar change during this time, such as a vancouver dispensary she has been in contact with throughout the year.

While a number of other industries, including restaurants, hotels and casinos, are experiencing the crisis caused by the coronavirus, the marijuana industry is reaching new heights. Despite the cancellation of cannabis concerts and festivals, which attract tens of thousands of tourists to states where recreational use of marijuana is allowed, the numbers suggest that this will be the most successful 420 in industry history. With the industry growing, fresh concerns have been voiced about the impact this could have on the environment. It has already been established that cannabis does impact our environment. Sadly, not enough is being done to minimize the impact cannabis cultivation can have on our precious environment.

Last year, Americans bought $ 90 million worth of marijuana ahead of 420, the industry’s equivalent to Black Friday: three times the normal sales, according to research firm BDSA. The situation at Medicine Man is not so unusual: dispensaries across America report similar sales figures. When state authorities ordered residents to insulate themselves in mid-March, cannabis sales, according to Cowen, jumped 35% from the same period last year. Even taking into account a small drawdown after record sales associated with panic demand, April sales are still higher than in 2019. Contrary to COVID-19 or, most likely, thanks to him, this 420 will break last year’s record.

According to Kyle Sherman, founder of the Denver company Flowhub, which provides dispensaries with payment processing software, curious data comes from stores. In 13 states, average daily sales of recreational marijuana rose 15-20% from last year. The average transaction size also grew by 20%.

There is no evidence as to whether marijuana smokers are at high risk for COVID-19 infection, but the Centers for Disease Control and Prevention reports that cigarette smokers are more at risk for coronavirus infection. This uncertainty has not affected cannabis sales in the last couple of months, but people have begun to buy edible marijuana more often. According to Cowen, since February, sales of marijuana flowers and edible products have increased, while sales of joints and vapes have declined.

The most important factor in the advancement of the cannabis industry in anticipation of the “420” this year was the fact that in many states dispensaries are considered the place of sale of essential goods, which allows them to continue their activities. Such a strange and even comedic twist for an industry that remains illegal under federal law. Active business development during the COVID-19 epidemic and the 420 season led Cresco Labs, a Chicago-based Cannabis manufacturer and retailer with 20 stores in 11 states, to decide to hire 250 new full-time employees, focusing on former restaurant and hotels.

Steve DeAngelo, co-founder of Harborside, one of the country’s most famous dispensary networks, says marijuana has always been a winner during economic crises. “Cannabis is reliably protected from recessions due to inelastic demand for it,” says DeAngelo. He notes that annually, starting in 1937, when marijuana use was criminalized in the United States, cannabis only rose in price.

Perhaps another reason why marijuana sales are still higher than they were before the pandemic was because the industry was able to quickly adapt to life under COVID-19, returning to strategies developed on the black market and based on speed, convenience and privacy, such as roadside sales and delivery.

While the Americans are sitting at home, the shipping companies took on the dirty work of the industry and delivered orders in just a few clicks. They also benefited from impressive industry growth. Since California introduced COVID-19 restrictions in mid-March, sales of Emjay, a delivery service from Los Angeles created a year ago, have grown by 349%, and over the past 30 days the number of new customers has jumped by 230% , and the number of first orders is 275%.

Similarly, the volume of orders at Weedmaps, which allows customers to place orders online and manage delivery logistics for dispensaries, increased seven times a week until April 20, compared to the same period last year. With everything available at a click of a button, places like NuggMD Oklahoma based have started letting people get a medical marijuana card online as well.

Eaze, a marijuana delivery software company based in Los Angeles and supported by investors such as Snoop Dogg, experienced a similar boom during the pandemic. In general, from March 13 to April 16, the number of new customers increased by 62%, and the number of first deliveries – by 55% from February. The average total cost of each transaction with cannabis also increased by almost 20%, and the total delivery volume – by 7% compared with February. “We ship cannabis everywhere to 420,” says Elizabeth Ashford, senior director of corporate communications at Eaze.

Research firm BDSA estimates US sales of marijuana in 2020 will reach $ 16.3 billion, up 31% from last year. All this shows that the industry has not suffered too much due to mass cancellations of events and a policy of self-isolation.

However, not everyone will be able to earn more than usual. Auckland rapper Too Short, who supports marijuana use, could make half a million dollars in gigs over the next few months, starting with a 420 appearance at the Staples Center in Los Angeles. But everything was canceled due to quarantine. “It’s sad to think about it,” says Too Short. “It’s like I’ve lost children.” Instead, he will host The World’s Largest Virtual Sesh from his downtown Los Angeles studio, which he calls Boombox, through Instagram Live. Rappers like Jadakiss and reggae singer Julian Marley, the son of Bob Marley, will take part as guests.

Wise Khalifa, a rapper and weed lover from Pittsburgh, decided to play a DJ set during the Weedmaps virtual event after his concert with Snoop Dogg at the Red Rocks Amphitheater in Colorado was canceled. And Chris Webby, an indie rapper from Connecticut who has canceled 10 appearances, will now hold a virtual event with Saturday night Live star Pete Davidson.

“420 is an enduring celebration,” says Too Short. “We immediately thought that” 420 “would intersect with quarantine, and we just knew that we would contact and smoke at Zoom.”

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