The COVID-19 pandemic has affected nearly every single country in the world. Massive financial losses were reported across the globe, not to mention the millions of lives lost to the virus.
When the WHO declared a global health emergency due to the virus, several countries preemptively shut down, temporarily closing all non-essential businesses. This contributed to the rising number of joblessness worldwide and the steep decline in the stock market. While some industries took a massive financial hit, others are surviving and a lucky few are thriving.
CDB industry amidst COVID-19
As expected, at the start of the pandemic and the shut down of industries, the CBD industry took a hit. With everyone losing their jobs and the physical stores being forced to close, it was a given that sales would take a dip.
However, as the physical stores started closing, online stores started taking off. Consumers are now starting to migrate from buying from brick and mortar stores to buying their CBD oils and other CBD-enriched products online. The CBD companies that have had online presence prior to the pandemic saw an increase in their online sales. A study conducted that surveyed CDB consumers showed that a large number of consumers have decided to switch to online purchasing for their CBD needs. Other consumers have also said that they are willing to buy in bulk to stock up in case the pandemic will cause a shortage in CBD products.
Physical stores that do not have online presence or online stores just yet have started offering curbside pickups to their customers.
CBD consumers and COVID-19
As the duration of the pandemic stretches over most of 2020, the number of people suffering from stress and anxiety has increased. The longer we are in the grasp of the virus, the greater the number of anxiety patients. A lot of them are turning to CBD instead of the more traditional pharmaceuticals. Not only are CBD-infused products cheaper, research has also proven that their side effects are not as drastic as prescription anxiety medications.
However, before deciding to switch or try CBD infused products, it is always safest to check with your doctor. CBD could interact with any current medication you are on and could cause adverse effects if taken without medical advice.
Negative impact of COVID-19 on the CBD industry
It’s not all profits for the CBD industry in this pandemic. The loss of jobs and the drastic dip in economies all over the world meant that there are fewer people with enough income to actually buy CBD products. And because brick and mortar stores were forced to close, some of those stores reported zero profit. Even the hemp farmers had to reduce their prices in this pandemic, some going from $38 per pound to a little over $8 per pound. This is due to an increase in supply in the market as a result of fewer consumers buying CBD products.
The future for the CBD industry
The projections for the future of the CBD industry are steady. CBD sales are projected to reach $4 Billion in a few years. It still is currently a billion dollar industry even during this pandemic, and its popularity seems to increase among consumers, especially because of its anti-anxiety properties.
Heather Smith is the Communications Manager at Sunday Scaries. She’s a composed copywriter and content strategist. She’s also a CBD advocate, promoting a healthy lifestyle free of stress and scaries.