The world today is facing one of the most alarming phases of our history- the COVID-19 pandemic. It has been affecting almost all industries worldwide. The health and economic industries today are both struggling and continue to consider various drastic solutions just to survive. With the vast effects of this pandemic, one of the drastically affected is the cannabis industry.
According to the World Health Organization (WHO), coronaviruses are considered as, “…a large family of viruses which may cause illness in animals or humans. In humans, several coronaviruses are known to cause respiratory infections ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS). The most recently discovered coronavirus causes coronavirus disease COVID-1.9”
Business owners who are in the field of the cannabis industry are continuously finding ways on how to lessen the effects of COVID-19.
The Effects of COVID-19 on the Cannabis Industry
GlobalNews.ca published an article on March 27, 2020, entitled “How the coronavirus is making a bad year worse for the cannabis industry”. It discusses how cannabis business owners are being affected by this pandemic. A part of the article mentioned:
“An outbreak of the novel coronavirus has only exacerbated matters. Cannabis deliveries throughout the country have been delayed. Stores are temporarily closed in many cities and across all of P.E.I., while others are limiting hours. Job cuts for the industry are climbing higher and faster than expected.”
It also mentioned that if business owners do not take measures to protect the industry, the sale and production of cannabis products will be greatly affected by going forward.
Another report entitled, “COVID-19: Impact on the Canadian Cannabis Sector”, highlighted the following information:
“The impacts of COVID-19 have been far-reaching, affecting businesses across all sectors. The Canadian cannabis industry, which has seen rapid legislative and regulatory evolution over the past several years, has also been forced to adapt and adjust to a series of emergency orders issued in response to the pandemic by both federal and provincial governments. In this article, we explore the impacts of the COVID-19 pandemic on cannabis producers and retailers and the associated legislative responses of federal and provincial regulators.”
The report also listed some important details on whether cannabis producers and retailers are to be allowed to continue their operations. In addition, it also discussed some information regarding Cannabis Act.
“Effective until May 1, 2020, Health Canada advised that it will be temporarily adjusting its approach to the administration and enforcement of the Cannabis Act and its regulations. The cannabis licensing program will now be focusing its resources on licence amendments to existing licences and security clearance applications, measures that license holders identified as their top priorities. As a result, licence applications for new facilities will likely be further delayed.”
The report is subject to changes for possible updates and developments regarding the cannabis industry.
Some of the effects of COVID-19 on the cannabis industry:
#1 Changes in consumer behaviour
When the issue regarding Covid-19 breaks out, a sudden change in consumer behaviour becomes very obvious. There was panic observed as purchasing and hoarding happened. Customers rushed to stores and dispensaries to make sure they will have cannabis products for recreational and medical purposes.
#2 More Convenient Purchasing Options become Available
Due to the large demand from consumers, various convenient shopping options such as pickup, delivery, and drive-through become very much available. This is due to several precautions such as social distancing. Pickup modes and deliveries are allowed since cannabis products are classified as “essential” items during the pandemic.
#3 Contactless mode of payment
As the demand for cannabis products increases as time goes by, the modes of payment also become innovative. Online payment methods are chosen to support cannabis-related transactions. These types of payments are being utilized since social distancing and lockdowns are implemented by the authorities.
Mark Mielke published a report on Mondaq.com, “Canada: COVID-19 and the Impact on the Cannabis Industry Keeping up with Cannabis”. One of the highlights of the report stated:
“According to Statistics Canada, Alberta cannabis sales have increased since the pandemic, where the total amount of cannabis sold in Alberta increased notably in March and increased again (though to a smaller degree) in April and May.”
The report also showed a table showing the sales of provinces, Ontario, Alberta, Quebec, and B.C. from December 2019 to May 2020. You can check the data here.
Some of the tips suggested to keep the cannabis industry successful during this pandemic include:
- Reduce the amount of contact between the customers and staff by encouraging social distancing
- Implement a program and procedures for improved cleaning and disinfecting of the common areas in the stores and dispensaries
- Promote and facilitate proper and regular health precautions such as hand hygiene and respiratory etiquette for customers and staff
On the other hand, cannabis industries in the US have also seen an increase in demand for cannabis products in the wake of the COVID-19 pandemic. A CNBC article highlighted this detail:
“U.S. cannabis CEOs say the chances for federal marijuana legalization will dramatically increase in the wake of the coronavirus pandemic, after several states declared dispensaries essential businesses, allowing them to remain open during stay-at-home orders aimed at halting the spread of the virus.”
According to Forbes.com, cannabis-related businesses should also improve their specific sanitary practices. The website stated on one of its articles:
“Dispensaries that are dual-use, recreational and medical, should consider taking measures to reduce unnecessary medical patient exposure. If possible, when curbside pickup or delivery is unavailable, medical patients should be served in an entirely separate area of the dispensary from general customers. These kinds of measures should be implemented even in adult-use operations, all of which also serve medical patients. Businesses should limit the number of customers inside of a dispensary at any time, enforcing social distancing for the health of their staff, customers, and patients. This may mean no more than one or two customers on the dispensary floor or at the counter at a time, shifting all sales to online/phone orders for pick up only, or pre-scheduling customers through an appointment only system. When limiting customers inside of the store, customers outside should be encouraged to stay in their cars while they wait (deli-style number systems could help make this more manageable) and a staff member should be posted outside enforcing a six-foot distance rule between any customer waiting in line.”
The said measure is to ensure that every customer, as well as the staff, will be protected against the alarming COVID-19 pandemic.
Final Thoughts
Canada is one of the most well-known countries in the world when it comes to the cannabis industry. COVID-19 may have brought some adverse impact to other industries, however, there are still some areas where the cannabis industry looks brighter in the future.
