While other economic sectors have been struck down by the COVID-19 pandemic, CBD and hemp businesses have prevailed despite still being a developing industry. Thanks to a surge in demand, the nature of the business itself, and its attractiveness to investors, this market hasn’t seemed to suffer as much as others.
People Are Buying More CBD than Ever
Compared to last year's numbers, 2020 is on its way to being a pivotal year for the cannabis industry. In California, for example, sales spiked by 159% on March 16th when comparing the same-day sales of 2019. The State of Washington, in the same comparison, also showed an increment of around 100%. As more people reported stress and anxiety symptoms due to the pandemic, the interest in CBD increased.
Sadly, the effects of the coronavirus outbreaks were felt most by young adults ages 18 to 24. According to research done by Mark Czeisler, a psychology researcher at Monash University in Melbourne, Australia, nearly 63 percent had symptoms of anxiety or depression that they attributed to the pandemic.
Other states caught a whiff of the situation, and many of them, like Colorado, Connecticut, Florida, Illinois, and others, have declared CBD as essential, allowing businesses to keep operating.
Investors Find Refuge in CBD
The crisis COVID-19 has brought upon many other industries have prompted investors to put their money in CBD. This series of financial moves are due to the relative stability the cannabis industry is enjoying right now.
Since CBD and hemp businesses often act as their own providers, effectively working in a vertical model, most of them weren't affected significantly by other industries' dwindling. Investors also see other benefits such as strong business fundamentals from most successful owners who have worked on hemp and CBD way before the 2018 Farm Bill.
Applying Best Practices
Another factor contributing to the industry's survival is how producers have learned to adapt to the pandemic. Since many of their sales move to online spaces, entrepreneurs have kept in mind best practices to stay relevant such as maintaining a strong SEO and email marketing strategy.
As CBDHempEvent—one of the biggest directories of CBD and Hemp events—points out in one of their blogs, success during COVID-19 is possible by being honest with customers and emphasizing clean processes and safety measures during manufacturing.
Many analysts have made predictions before about the boom that is to come for the CBD and hemp industry, but the COVID-19 pandemic worked as a real and tangible challenge that shows how well these businesses will do in years to come.