Negosentro.com | How Has the CBD Oil Market Changed in COVID-19 Season | With the entire world stuck in quarantine for months now and hoarding necessities, the COVID-19 shopping experience has mostly revolved around toilet paper, hand sanitizer, jigsaw puzzles, and frozen pizza.
Stocking has been the new norm, and the cannabis industry hasn’t been left behind. Cannabis and CBD, once considered discretionary purchases have also been added to the list of what to stock up by certain consumers. This has fueled an unprecedented rush with record-breaking sales since March.
Cannabis companies have also had to enter a new norm as the COVID-19 pandemic has put stress on every business sector, altering the industries in ways that could possibly be permanent. The pandemic has exacerbated fault lines in this rapidly evolving market, which has led to a number of outcomes.
As the market moves through the coronavirus pandemic, companies such as Lazarus Naturals, as well as their investors, have had to learn to make better assumptions of what could go wrong, develop built-in resilience, and put robust practices in place to deal with any disruptions, whether minor or significant. Flexibility is needed. Here are some of the ways the CBD oil market has changed in COVID-19 season:
1. Consumers’ Buying Behaviors have changed
CBD buyer behavior has been changing, including how they buy CBD oil products. With people socially distant and stuck at home, habits like online ordering, curbside pickup, delivery, and drive-thru lanes are more likely to stay even after the pandemic as customers have recognized the ease of use. Healthcanal is very good website in review product, you can check it there.
This could prompt a switch to delivery because consumers have realized that they don’t have to wait in line anymore. Small CBD businesses also recognize that they can digitize the experience, offer curation and convenience, and understand their consumer more on a meaningful level.
The rise in online shopping will serve as an incubator for what the future holds for the CBD oil industry, as well as other industries. Industries will be forced to learn more on how to leverage the digital market.
2. Supply Chain Disruptions
Like nearly every other industry in the country, the CBD and hemp industry have inevitably experienced disruptions along the supply chain. According to CNN, a new economic report from China showed plummeting retail sales, industrial investments, and output for the first quarter of the year, and economists have predicted that the plunge will be far from over.
It has been difficult for companies to maintain their supply lines in the past few months. Medical resources are in short supply and have been directed towards managing the COVID-19 pandemic. Regions that were dependent on imports have faced challenges in supply as border restrictions have been tightened, and staff previously involved in logistics became unavailable.
Some regions have to keep cannabis stores open despite the curfew and lockdown measures to maintain the supply of CBD and medical marijuana to patients and to avoid a surge in untaxed black-market activity.
The COVID-19 pandemic has exposed the vulnerability of the CBD and cannabis supply chain, especially for companies that source materials from overseas markets like packaging and vape hardware.
3. Loss of Revenue
Some revenue may be lost due to factors like shop closures, disrupted supply chain, general economic slowdown, and restricted movement.
However, these setbacks have also proved to be crucial for innovation, strategizing, and planning for CBD companies, and these measures could continue to take effect even after the pandemic. For instance, delivery services have proven cost-effective, and CBD companies may choose to normalize it.
The International Monetary Fund (IMF) indicates that a recession could occur, meaning that things could continue to be uncertain for the cannabis and CBD industry. Luckily, research shows that during times of economic downturn, cannabis and CBD consumption tends to increase. This could be so due to social distancing and reduced employment.
4. Political Setbacks
The COVID-19 has stalled reform and legalization efforts as federal and state lawmakers have been forced to pause everything else and deal with pressing public-health and economic issues. Recreational marijuana in New York was in the process of being legalized, but that motion has been shelved.
The chances are that most voter initiatives in states across the United States will not make the November ballot because coronavirus has prevented groups from collecting the signatures they needed. However, the pandemic could also have a positive, long-term impact in helping federal and state legalization reform efforts move forward.
5. Labor Shortage
Coronavirus has exacerbated labor shortages and spread them into industries that never saw it as a significant issue. In the CBD industry, though dispensaries haven’t experienced a change in product preferences or less foot traffic, they have experienced a shortage of employees.
The workforce has been reduced due to either falling ill, self-quarantining, or having to stay home to take care of their kids who have been out of school. Also, there is a shortage of laborers who are needed to work on hemp farms or processing facilities.