It’s no secret that a recession can take a toll on many businesses. And when you add a pandemic to the mix, the concerns of business success is amplified. However, certain products and services remain in demand, even if they aren’t vital for survival (e.g., alcohol, cigarettes, movies, lipstick).
Now cannabis products like cannabidiol (CBD) and legal marijuana have now joined the ranks of historically recession-proof items that have provided comfort or distraction from the stresses of day-to-day life. In fact, some states deemed CBD and cannabis businesses “essential,” which created a surge in business. In fact, while others are laying off employees, many cannabis companies have had to hire additional staff in order to meet the demand for online sales and delivery.
Market Watch still cites the Market Research Future Report (MRFR) projection that CBD oil will spearhead the cannabis market with industry leaders like Charlotte’s Web™️, which has recently acquired CBD CLINIC™️.
Sure, there is still ample uncertainty about this new industry niche. However, some economists are optimistic about the leading players in the cannabis market.
Read on to understand why CBD e-commerce is flourishing and how your private practice can stay afloat with CBD sales during these challenging times.
Why CBD and Cannabis Business is Booming
We’re sure it’s clear to you that CBD interest has soared since its legalization. But it’s pleasantly surprising to see just how well the industry is handling the sudden changes amidst the COVID-19 pandemic.
At the onset of “stay at home” suggestions or mandates this spring, the cannabis industry saw a spike in online sales as people rushed to stock up out of fear that dispensaries would shut down.
We’re talking a 52% to 130% spike in March. Some CBD companies have even seen as much as a 300 percent increase in sales since the onset of coronavirus.
These numbers evened out as consumers stopped stocking up, however the industry remained steady.
In some states, physical stores selling CBD and other cannabis products remained open as “essential businesses,” while e-commerce soared to meet the demand for CBD as people complied with the “stay at home” orders. Not only that, but shoppers began spending more money on these products than they did before the economic decline.
It became clear early on that the industry would not only survive, but also thrive.
How online CBD sales remained steady
Online sales, in general, have surged with physical storefronts forced to shutter their doors. Between store closings and panic, people turned to the internet to stockpile staple goods that quickly became scarce at the grocery store.
But as we said earlier, consumers also reached for low ticket items, vices, and medical supplies that could provide comfort or distraction. And CBD was among them.
According to the Brightfield Group, a consumer research firm, 47% of CBD customers planned to stock up on CBD products at the onset of coronavirus, and 37% planned to use these products more often.
For many of these consumers, CBD is not a luxury item. To them, it’s a necessity that offers a reprieve from what has become the new normal of parenting, homeschooling, and working – sometimes all at once. Likewise, topical pain-relievers are non-negotiable items for those who suffer from muscle and/or joint pain. The topical products infused with CBD are among the highest topicals in demand.
The fact that they were available online made it all that much easier for the industry to thrive as people were confined to their homes.
The CBD industry and legal cannabis industry are thriving despite the recent economic concerns. More and more people turn to CBD for comfort. So if you’re not offering high-quality CBD topicals to your patients and clients, now is the time to start. And you can stay in demand if you make your CBD products available online.