When the clock hit midnight on New Year’s Eve 2019, canna-businesses across the world were experiencing record sales and revenue growth, and people were looking forward to continuing success in 2020.
No one knew what the near future had in store for the planet and its economy. The novel coronavirus outbreak has sent shockwaves through the retail markets and shaken consumer confidence. As people found themselves social distancing at home, brick and mortar retail stores have been hardest hit, and the loss of income people experienced slashed consumer spending.
As the world begins to recover, cannabis-based businesses can expect a resurgence to the levels of sales and revenue they were experiencing in late 2019, and perhaps even more. Here we are going to look at how canna-businesses will bounce back in the wake of CoVID-19, and why you may see even more growth in sales and revenue in the sector.
Strong Online Sales are Powering the Economy
The era of social distancing brought brick and mortar retail to a halt, and the full effects of this are yet to be completely felt on main streets and in shopping malls across the world. Online sales have actually been strong, however, and this has been helping to power the economy during the social distancing lockdown.
Online CBD providers like minnygrown.com have seen continued sales and even increases in revenue during this period, as people couldn’t visit brick and mortar health stores. Canna-businesses with an online presence should be investing in this revenue stream for future sales growth.
A Renewed Focus on Health in Commerce
The global health crisis has naturally focused many people on making more healthy choices in their lives and looking for natural solutions to health ailments that have more localized supply chains.
During the recent crisis, many people struggled to receive their regular medication due to over-stressed supply chains and social distancing. Many have turned to CBD products and legal medical marijuana as available alternatives to their pharmaceutical prescriptions. This will lead to a growth in sales as more and more people switch to natural products and begin to treat long-term ailments with cannabis-derived products.
The Demand for Tax Revenue Could Bring Change in Legislation
The challenges that the coronavirus crisis has posed to governments across the world have led to some of the biggest national expenditures in many nation’s histories, outside of wartime.
As economies begin to recover and governments will seek tax revenue to fund the huge amount of money spent on ‘furlough schemes’ and tax credits, the programs that helped people pay their bills, and maintain an income during the lockdown. Many political pundits suspect that cannabis may be completely legalized – and taxed – in many countries and states where it is still a prohibited substance, in order to generate revenue. This would be a huge boost to canna-businesses everywhere.
Slowly the world is beginning to return to something similar to the normality we experienced before. As more and more sectors of the economy start to recover, canna-businesses can expect to be at the forefront of this financial resurgence.