Both millennials and boomers have been smoking and spending more on cannabis since the outbreak of the coronavirus.
Baby boomers and millennials can’t agree on anything: the economy, social values, and smoking cannabis. Not whether or not they should consume the plant — boomers now smoke more cannabis than high schoolers — but how, when and where and everything in between.
Nothing in 2020 has gone according to plan, and cannabis legalization is no exception. According to Vox's criminal justice and public health reporter German Lopez, at least 18 states were predicted to legalize cannabis to some degree this year, either through their legislatures or via ballot measure. 2020 was supposed to be a big year for cannabis legalization.
And then COVID-19 happened.
The pandemic has hobbled entire sectors of the economy but the cannabis industry is surviving, even thriving. Sales are up as consumers turn to marijuana for stress relief and recreation. Companies in the industry are making those sales easier and safer with online ordering to reduce contact between retailers and customers. There are even a variety of new products for consumers to try.
With new legalization measures moving forward and consumption on the rise, it's clear that cannabis continues to go mainstream. But cannabis business owners still face an uphill battle when it comes to brand awareness and customer outreach. Why? Draconian advertising restrictions.
In addition to limitations or outright bans on TV, radio, and print advertising, cannabis businesses are, for the most part, locked out of online advertising, with Facebook, Instagram, Google, and YouTube all prohibiting cannabis ads on their platforms.
But all is not entirely lost.
The early film star, Mae West, said, "Too much of a good thing can be wonderful." Obviously, she wasn't talking about tourism. Before the pandemic, many of Europe's major cities were choking on crowds. Venice probably had the worst of it, with gigantic cruise ships sailing up the Grand Canal disgorging thousands of tourists all at once into the narrow already overcrowded sidewalks. And Barcelona's La Rambla had become crushed that they had to ban tour groups from the Mercado.
Illinois marijuana shops sold almost $61 million in recreational weed in July, beating the previous record set in June by $13.4 million.
In all, dispensaries have sold about $300.1 million in recreational marijuana since sales started in Illinois Jan. 1.
The sales figures have set new records every month since May. July’s sales were a 75% increase over February, the month with the lowest sales at $34.8 million.
While the COVID-19 pandemic has damaged a wide range of industries around the world, it looks like cannabis might not be one of them. An industry white paper last week shows that the cannabis industry’s 2020 growth is currently outpacing that of 2019. Hiring for cannabis companies os also already on the rebound, and retailers are actually purchasing more product from companies than they were prior to the pandemic.
Legal sales have boomed since March, though it’s hard to say how many customers previously bought from illegal dealers.
The legal marijuana industry has spent years battling illegal sellers who have eaten away at its market share and undercut its prices.
But the coronavirus has proven to be a boon for legal pot shops, as customers fear the risks associated with inhaling questionable products and are nervous about letting sellers into their homes.
Events over the last nine months have created an opportunity for investors new to the cannabis space. The recent restriction of capital, coupled with the halting of the economy due to the COVID-19 crisis, has resulted in the creation of distressed cannabis assets in need of funding.
Given the steep discount in company valuations, now could be one of the best times in history to invest in the cannabis space.
The House of Representatives on Thursday added an amendment to a spending package that would protect state-legal marijuana businesses from the Department of Justice.
The amendment, according to its description, would “prohibit the Department of Justice from interfering with state and tribal cannabis programs.” Congressional Cannabis Caucus founder Rep. Earl Blumenauer, D-Ore., sponsored the amendment, which passed 254-163, including 31 Republicans who voted in favor of it.
