Impacts of Coronavirus (COVID-19) on Cannabis Industry
Cannabis industry feels the repercussions of the coronavirus (COVID-19) outbreak.
The coronavirus (COVID-19) outbreak that reportedly began in Wuhan, China has now made its way to over 100 countries around the world resulting in over 3,500 deaths globally as of March 8th, the majority of them in China according to reports from the World Health Organization.
Not only has this deadly virus caused a worldwide state of panic, it has also had an effect on the economy and shaken up the stock market. The marijuana industry is also feeling the impacts of this quickly spreading disease.
Disruptive for Business
Cannabis businesses will feel the repercussions of the outbreak due to the shutdown of Chinese manufacturing plants. There is a huge concern for cannabis vape retailers most of which source their products from China and are currently experiencing delays on product orders.
90% of vape hardware reportedly comes from Chinese factories and will be greatly affected due to coronavirus-related closures. This coming after a vaping crisis caused greatly by the illicit marijuana market a few months prior.
It’s not just the cannabis vaping industry that will suffer from the effects of the coronavirus spread. The cannabis industry will see impacts from manufacturers to testing labs.
Canceled or Postponed Events
Various major events including cannabis-related conferences have been canceled due to the coronavirus outbreak.
Events like South by Southwest (SXSW) in Austin, Texas which takes place in March has been canceled for the first time in 34 years. The event included a cannabis business track.
The American Herbal Product Association (AHPA) postponed the Hemp-CBD Supplement Congress previously scheduled for April. The event has been been postponed indefinitely and the International Cannabis Business Conference in Berlin has been moved up from April to July.
These events tend to bring a large number of people together from all over the world and while some are taking preventative measures by canceling or postponing larger events, some are still taking place.
Looking at the Bright Side
Although there are clearly some concerns for the cannabis industry during the outbreak, there are some areas of opportunities.
Current shipments of products arriving from China have been halted with no indication of when they will resume. Experts say that this could be the time for U.S manufacturers to step in and fill the gap for Chinese factories.
Although this crisis has had some negative effects on the stock market, it’s created an opportunity for people interested in the marijuana industry to invest.