COVID has boosted investments in the cannabis industry in the US and on a global level.

Many pop-cultural icons have widely popularized cannabis for decades. Today, researchers are trying to extract medicinal compounds from it, while some governments are trying to legalize it. In recent times, the cannabis (CBD) industry has exploded partly because of the ability to market products effectively. AI bots crawl the web looking for information about potential customers that will push the sale of cannabis products, and it’s has been quite successful as well. Even IoT technology has enabled people to grow cannabis indoors; simultaneously, Blockchain provides security while enabling businesses to manage finances and funding. With myths and stigmas associated with ‘weed,’ ‘marijuana’ and ‘cannabis’ starting to dissolve, this has also contributed to the multi-billion dollar industry. And just like COVID had significantly impacted various Industries, the cannabis industry was also affected by it. While this year, the legalization of cannabis was a top priority, the industry has faced massive disruption that secured a good future for investments.

With nationwide lockdown restriction and grappling anxiety due to social distancing, job lay-offs, and others, cannabinoids became a go-to cure to deal with changed and challenging times. As it became an everyday table talk, along with a shift in consumer behavior, the sales and revenue also took a momentous leap. While the projections prior to the COVID crisis were almost $17 billion, the Massachusetts state itself showed $157 million in sales. Meanwhile, according to Cowen estimates, the US cannabis market is worth approximately $56 billion in 2020, with about 90% of sales going untaxed in the illegal market. In March alone, the weekly sales topped $134 million in California, Washington, Nevada, and Colorado, a 17% increase from the weekly average in 2019. In the second half of March, the average purchase also increased by 47%.

As per a survey report by the State of the Cannabis Industry conducted by LeafLink, Flowhub, and Vangst, the cannabis sales nationwide have stabilized at a rate 40 percent higher than in 2019. This implies that post-pandemic sales numbers are encouraging. It has also been observed that amid the COVID crisis, the CBD industry has shown remarkable market resilience. As the pandemic escalated, the industry owners quickly adapted to new ways of doing business via improved e-commerce and worldwide shipping along with a boom in local delivery by dispensaries.

So, it is evident that the value of cannabis is much harder to dismiss when millions of people use it to cope up who previously flocked to bars and pubs as their respite. According to cannabis industry consultant Andrew DeAngelo, the coronavirus may also shift cannabis sales toward products that don’t need to be smoked or vaped. He also mentions that cannabis marketers are split between focusing on hardcore potheads and trying to capture the vast market of occasional users. Even investors have begun sampling the industry as volatility and uncertainty reign, while legal restrictions are starting to be relaxed.

Earlier, President Joe Biden has had maintained steadfast against marijuana decriminalization; Kamala Harris’ support of legalization could mean a Biden-Harris administration would take up the issue. At the same time, while investors are looking forward to potential federal marijuana legalization in the US, most cannabis companies have already started investing aggressively in growing their businesses and securing high-profile partnerships. Currently, 33 states have adopted legal use of cannabis for medical use, and 11 of the 33 have also legalized cannabis for adult recreational use.