5 Major Changes That The Cannabis Industry Must Embrace Post COVID-19

The global pandemic that set its stage in Wuhan, China, has been a game-changer in more ways than one. It has managed to shake up things and radically change what was once considered to be solid ground. Consequently, everything now has a “new normal.”

What does this look like for the cannabis industry?

Allow me to indulge you in the next five minutes.

Like many other industries, the cannabis industry is not untouched. As the year winds down, the world finds itself in the throes of the most significant public health crisis experienced in our lifetime; the Covid-19 pandemic. Covid-19 has presented a social and economic crisis that has severely tested the resilience of the cannabis retail industry. 

While some retailers have suffered a significant loss, with some even closing down, others have learnt to adapt and embrace innovation. This pandemic will forever change how we see the world and conduct business. We will take a closer look at the Post- Covid cannabis industry and discuss measures that companies need to take to thrive in the current environment.

So, what changes do we expect to see in the cannabis industry post corona?

Changes in Consumer Shopping Practices

The consumer shopping behavior as well preferences of many cannabis shoppers has drastically changed. Previously, consumers were accustomed to strolling to their local dispensary to purchase their stash. But because the pandemic requires avoidance of contact, e-commerce and contactless purchasing have become the norm.

This means that most dispensaries now have to have a better online presence with more sophisticated interactive systems that allow the customers to make their purchases seamlessly online. Drive through as well as curbside pickups have also become a popular option.

Cashless Payment

The cannabis industry has mainly been unbanked due to the federal prohibitions on marijuana. Consequently, the industry had previously operated on a cash system where most transactions were facilitated by hard cash. 

In its wake, the Covid-19 pandemic has precipitated an online money system where the physical handling of cash is discouraged to prevent the spread of the virus.

To fill this gap, digital wallets are gaining mainstream acceptance for instant purchases within the cannabis industry. To add to this, some e-commerce and online technology solutions are being provided by payment processors that mirror traditional online payment channels. While using these, a retailer needs to pick a reliable, sturdy option to avoid fraud and unreliability.

Mainstream Acceptance of Cannabis

In the states that have legalized cannabis, marijuana sales drastically increased during the Covid-19 period. In these states, such as New Mexico, Michigan, California, Maryland, Colorado, and New York, cannabis dispensaries were deemed “essential” businesses. 

This means that cannabis is slowly earning its place as a staple in many circles, having been identified as a commodity some people find to be indispensable. This not only promotes positive conversation, but its general acceptance also makes the chances of it being legalized across even more states more likely.

 Many Dispensary Jobs Will be Remote or Virtual

Tied to the changed consumers purchasing habits that have seen most customers purchasing their weed online, the description of many dispensary jobs have changed from customer-facing to virtual and remote. Functions such as inventory, customer care, accounting and other such roles can be carried out remotely with only an occasional check-in where necessary. 

Business Consolidation

The shock of the Covid-19 pandemic, especially in the first stages, brought a crisis in the cannabis industry. Traditional dispensaries did not experience the walk-in traffic they were used to, with some resorting to reducing overheads like workers. Growers also experienced a time of confusion as social distancing rules prohibited physical presence at the grow farms, which also had an impact on the distribution chain.

These variances have brought the need for smaller marijuana businesses to either put their resources together in consolidation where they can offer seamless e-commerce services or get bought out by more prominent entities that can withstand the impact of the uncertain times.  

Conclusion

The pandemic has brought drastic change, one might even be tempted to say chaos to the business community, and cannabis has not been exempt. Targets and projections have been blown out of the water, and many smaller shops have found it challenging to continue philtering out a profit.

As drastic time's calls for drastic measures, adapting to these 5 changes expected in the cannabis industry Post-Covid will go a long way in managing the changing tides and surviving to better times ahead.