When the Coronavirus (COVID-19) crisis initially broke out, cannabis companies – particularly those who sell vape products – took a hit. After all, the virus originated in Wuhan, China and since 90-95 percent of cannabis vaporizer components are sourced from the Asian country, supply chains quickly started drying up.

Fortunately, China is resuming normal business activity and supply chains are being propelled back into motion. Although it will likely take a while for production to be restored to normal levels, many cannabis businesses in the United States are being considered “essential business”. 

Europe’s market is also staying afloat, what with shipments to Germany being uninterrupted; Germany is the largest cannabis market in the European continent. Over in Canada, supply is just as strong, with the Ontario Cannabis Store (OCS) offering next-day delivery services to consumers across the country.

COVID-19 and cannabis: Virus triggered a spike in sales, hasn’t deterred consumers

As of April 15, 2020, confirmed cases of COVID-19 had surpassed two million. Of that amount, 484,757 had recovered and 126,760 had died. No other virus or disease outbreak has been labeled a ‘pandemic’ by the World Health Organization (WHO) since the H1N1 ‘swine flu’. Efforts to contain the virus are being made by numerous countries, with many shutting their borders, grounding air travel and keeping people indoors/imposing social distancing rules.

The “lockdown” that has been enacted across Canada and the U.S has sent cannabis sales on an upward incline. Just as people may consider toilet roll, milk and eggs to be essential supplies, consumers are choosing cannabis as a must-have household product. A lot of medical cannabis patients have been taking the advice of the Centers for Disease Control and Prevention (CDC), which suggested that individuals who rely on the plant stock up on a month’s worth of their medicine.

It seems that consumers of the non-psychotropic cannabinoid CBD (cannabidiol) aren’t exactly put off by the COVID-19 pandemic that has ripped through 210 global countries and territories. According to recent data published by Prohibition Partners on 19 March 2020, the vast majority of 2,500 survey respondents based in the U.S., United Kingdom and Canada said that COVID-19 is unlikely to have a major impact on personal cannabis or CBD consumption.

COVID-19 and cannabis: U.S. industry players won’t receive stimulus funding package 

Despite the fact that sales of cannabis have increased since COVID-19 infiltrated the map, challenges remain for the industry. This is particularly true in the U.S., where cannabis company owners were recently informed that they wouldn’t be included in the $2 trillion federal stimulus funding package.

This federal funding package was designed to assist those affected by the economic devastation caused by COVID-19; an estimated 90-95 percent of the U.S. population will qualify. However, it seems that cannabis companies won’t be included in that percentage. Plus, since many banking institutions are opposed to serving companies and ancillary businesses in the legal weed sector, the opportunities for replenishing economic loss after COVID-19 are slim.

On the plus side, with so many cannabis consumers requesting that their supply chains remain stable throughout the pandemic, lawmakers may become more inclined to push for federal legalization in the U.S. Furthermore, so long as supply remains consistent, there will be minimal risk of potential shortages pushing people to the illegal market. As a precautionary measure, cannabis companies would benefit from having alternative suppliers from which they can source their stock; if things get rough.