When we look back at last year, rest assured that the most memorable point of reference will easily be COVID-19 and the effect it has had on the entire world. Coronavirus has directly affected people in many ways, ranging from their jobs, living situation, and most importantly: their mortality. The same holds for the 2020 cannabis drought of California.
The Cannabis drought of 2020
Despite being the nation’s capital of cannabis, California is no stranger to enduring a shortage of cannabis on an annual basis. There are a handful of reasons associated with the typical yearly California Cannabis Drought. Some of these reasons include California being a big tourism hub for first-time and traditional cannabis consumers. Moreover, California hosts a slew of events all year long dedicated to cannabis. Known cannabis-centric companies sponsor these expos and are open to all adults 21 years or older. You can also bet your top dollar that people from around the nation visit California by the hundreds of thousands every year to experience some of that “Humboldt County Goodness.” When you combine these factors with the typical Californian’s love of their local buds (as well as the typical no-water ordinances enforced by some counties depending on the weather), California often experiences a mild cannabis drought on an annual basis. Unfortunately, the yearly lack of cannabis last year got worse with COVID-19.
The Cannabis drought of 2020 & COVID-19
Now, consider the reasoning as mentioned earlier for the lack of cannabis, but add a pandemic. Ironically, the Coronavirus and the typical California cannabis drought have a variety of things in common:
- They immediately affect the economy.
- Dispensaries cannot operate the same when they are present.
- It can go on for way longer than expected.
COVID-19 has refused to play fair; the virus has directly affected the cannabis industries across the world. Despite this, it can be debated that the cannabis sector wasn’t hurt that bad as they saw a 20% increase in cannabis delivery during the ‘first phase’ of the COVID-19 virus.
Additional reasons for the lack of Cannabis during 2020
Last year, there is more depth to the reasoning behind the significant absence of cannabis in California. Since businesses are being re-shutdown and people are re-advised to practice self-quarantining, the cannabis industry is taking a massive hit. Licensed Producers are having a tough time providing dispensaries with enough cannabis to meet their demands. This is likely due to people once again becoming a prisoner of their own home with access to a multitude of delivery services. This includes food, alcohol, and of course: cannabis. People are smoking cannabis faster than producers can get their harvest adequately prepared.
Stakeholders and stockholders both are genuinely concerned about how COVID-19 will continue to impact the cannabis industry, especially in the mecca of California. The Coronavirus has made its way into more than 90 nations around the globe, including known cannabis markets such as Las Vegas, Nevada, and obviously, Los Angeles, California. At the time, cannabis stocks had become negatively influenced by the pandemic. This may be due to stockholders pulling their reserves to make ends meet during the global pandemic. Despite this, with the Coronavirus virtually on the doorstep of many dispensaries in the state of California, the cannabis industry will continue to be directly affected.
At the beginning of 2020, Forbes estimated the cannabis industry to exceed $230 billion by the end of the decade. Despite this, these figures were calculated before the repercussions pandemic. Looking back on the impact that COVID-19 had on the cannabis industry on a local, national, and global scale, it is safe to safe they hit the nail right on the head with their predictions.