Impact of Covid-19 on the Cannabis Industry
- Posted by Noni Cavaliere
- On June 15, 2021
- 0 Comments
In the early days of the COVID-19 pandemic, few Americans could have truly imagined the ways in which our country would be forever changed. As weeks stretched into months, countless people lost their jobs, businesses permanently closed their doors, and entire industries were brought to a screeching halt.
But at the same time, there were a handful of industries that saw sudden and unexpected growth – we all remember when a roll of toilet paper was worth its weight in gold in the spring of 2020! While many of those “microbursts” of growth were intense but short-lived, one industry, in particular, has experienced a steady stream of wins from the beginning of the pandemic: cannabis.
Nobody could have predicted that, overall, COVID-19 helped rather than hurt the cannabis industry. The pandemic surprisingly impacted many cannabusinesses in positive ways, moving the industry as a whole in a forward direction. Here at Marijuana Market Xperts, we see what we believe to be a historic breakout moment for cannabis in the U.S.
How Has COVID-19 Impacted the Cannabis Industry?
If you haven’t been personally affected by a coronavirus, then the odds are good that you know somebody that has. But even as the country faced the economic, social, and political fallout of a global pandemic, the cannabis industry seems to be flourishing.
There are several different ways that the challenges of the pandemic set a series of events in motion that would end up benefiting the industry and where it stands today:
Cannabis Is Now An “Essential” Business As It Becomes Increasingly Mainstream.
As the COVID-19 virus wreaked havoc across America, government authorities at the city, county, and state levels issued varying degrees of shutdown orders in an attempt at reducing transmission. A huge number of businesses were forced to temporarily close their doors, except businesses deemed “essential”: grocery stores, pharmacies, and similar providers.
At first, marijuana businesses seemed like they were going to be forgotten – but the public outcry prompted leaders to take another look at the necessity of dispensaries and similar operations. A number of states declared cannabis businesses as “essential,” allowing them to remain open throughout shutdowns. Eventually, almost all states in which medical or recreational cannabis have been legalized classified these businesses as “essential services.”
The fact that so many government leaders placed dispensaries in the same category as pharmacies mark a major shift in the overall public perception of cannabis. A consistently increasing percentage of Americans are recognizing the necessity of dispensaries, showing just how much headway cannabis has made in becoming more mainstream.
Sales increased dramatically throughout 2020, and growth appears to be holding steady.
When consumers were rushing their local grocery stores for toilet paper, hand sanitizer, and canned food, it turns out that dispensaries were seeing an influx of their own. In the first week of major COVID-19 shutdowns, there was a 30% jump in overall sales at dispensaries. And it wasn’t just sales that were going up: the number of new customers, deliveries, and how much each customer spent in a single visit increased as well.
After dispensaries and other cannabis services were categorized as “essential,” sales continued to grow. Throughout 2020, the industry saw astronomical increases in sales in numerous states. And best of all, there has not yet been a sharp drop that would tell us that the growth was only temporary. It seems that the pandemic simply accelerated progress towards the thrilling success that the cannabis industry was already headed towards.
The Industry Received Much-needed Support From Individuals In A Position Of Power.
When cannabis dispensaries and delivery services were included in the shortlist of “essential” businesses that could remain open during shutdowns, it illustrated just how many political leaders were prepared to go to bat for cannabis consumers. In states like Massachusetts, Illinois, and California, government lawmakers put the weight of their legislative support on marijuana’s side.
As legalization efforts gain ground throughout the country, being able to see various politicians voice their support for pro-cannabis protections is a big win for advocates. It’s an important demonstration of just how much progress that marijuana has made and a positive indication of where it might go soon.
How Can Cannabis Businesses Succeed After the COVID-19 Pandemic?
There’s no question that our economy – and society as a whole – has been reshaped by COVID-19. Even as we return to what everyone is calling “a new normal,” many businesses are still adjusting… and there are likely many changes still to come. How we shop, interact, and even think has shifted, and adapting your business strategies accordingly is a must.
Marijuana Marketing Xperts has been a leader in cannabis business marketing and branding for years, and we are proud to have supported many cannabis clients in their journeys through the pandemic. Now, as our country starts to emerge from the worst of COVID-19, we’re turning our attention to devising smart strategies for our clients to seize their chances to truly thrive.
Building Authentic Relationships With Existing And Potential Customers
If there’s one thing we learned during the pandemic, it’s that we all rely on genuine interactions and a sense of community. As a business owner, you can provide those to your customer base in a way that benefits you both. Your brand will get a boost from positive connections made with consumers, and your current and future customers will enjoy being a part of the larger community you’re nurturing.
One of the simplest ways to achieve this is through social media for cannabis, using platforms such as Facebook, Instagram, and TikTok. Even though you can’t directly advertise cannabis-related products and services on most platforms, that doesn’t mean you can’t prove that your brand is one worth knowing.
Leveraging Organic & Paid Search Together
Making sure your business can be found by the right people at the right time is crucial. Now more than ever, consumers are looking for outstanding cannabusinesses. From their nearest dispensary to new brands to try, marijuana enthusiasts are diving headfirst into the growing market.
Even though this is good news for your business, it’s also good for your competitors – so what can you do to be “found” before they are? Digital marketing presents you with a variety of options for getting discovered by your target audience. Using search engine optimization (SEO) to be at the top of online search results, getting listed in cannabis directories, and even tapping into the tech-savvy tool known as device ID targeting can all be effective methods for reaching the consumers that want what you have to offer.
Representing Your Brand As A Valuable Source Of Knowledge
Both before and after COVID-19, content has been reigning supreme. When it comes to digital marketing, crafting high-quality, relevant content that is engaging and useful for consumers is one of the best ways to see measurable results. Now, as a record-high number of people shop for cannabis products and services, it’s vital that you show up as a king (or queen!) of content.
This means creating a website that incorporates a consistent flow of new, interesting content covering cannabis-centric subjects. For example, you might build a site blog to share reviews for new cannabis edibles, break down the latest in cannabis laws, or post beginner-level how-to guides for selecting strains. This content can also be cross-posted on your social media accounts, widening your sphere of influence.
Grow Your Cannabusiness After COVID-19 with Marijuana Marketing Xperts
Right now, if you’re a cannabusiness owner, a wealth of opportunity is there for the taking. But are you prepared with the right tools to take your brand to new heights?
Because the Marijuana Marketing Xperts team specializes exclusively in cannabis marketing, we have a unique knowledge of the nuances of the industry. Rather than the generic approach a typical marketing agency might take, we’re able to tailor our services to suit the wants and needs of a cannabusiness client. On top of that, our team is familiar with the complexities of cannabis regulations for marketing, state-by-state laws, and other rules. So, when we say we’re the “Xperts,” we mean it!
Multi-Channel Marjuana Dispensary Marketing Strategies For 2021
Whether you’re launching a brand-new cannabis venture or you’ve been running a cannabusiness for years, we can help you develop a smart strategy for marijuana marketing in 2021 and beyond. There’s never been a better time to double down on your marketing efforts and see a next-level return on investment – the customers and patients are there; all you need to do is be ready to reach them!
Learn about our cannabis marketing services and how partnering with Marijuana Marketing Xperts can be your best business move of the year when you contact us today.
Featured Image: Joshua Rainey Photography/Shutterstock
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