All over the world, countries are keeping a tight reign over their nations in hopes of flattening the curve and slowing down the spread of COVID-19. We’re months into the pandemic now and there seem to be no signs of improvement anytime soon. The impact and consequences that follow the virus will be seen long after control over the spread of the virus is contained. Human health will eventually normalize while many will be suffering loss due to the economic conditions surrounding the pandemic (support local as much as possible). The international cannabis market has been impacted too.
How the World is Responding to the Pandemic
Many countries are struggling with the same complications such as inadequate testing and a lack of personal protective equipment for medical staff. Some countries are getting innovative such as South Korea. The country has one of the most comprehensive protective measures according to experts. They also have readily available ‘phone booths’ for the public to get tested by health professionals without coming into direct contact with each other. While some countries, such as the Philippines, are getting a lot of criticism from experts as they continue to struggle to deal with the virus. It seems that the leaders of the Philippines might be offering its people contradictory information while many things remain unclear such as the total cases as well as the public transportation operations. While some countries, like South Africa, continue to enforce strict restraints during the lockdown. Lockdown in South Africa has suspended travel, banned alcohol and tobacco as well as continues to enforce minimal movement and closed operations of non-essentials.
Countries that reacted the hardest and fastest have seen the least lash out from the virus while those who were slow to react have struggled the most and so it continues. With most of the world having closed borders, airports, shops, businesses, etc, the international cannabis market has felt the impact.
How the International Cannabis Market is Being Impacted by COVID-19
- Cannabis trade show, exposition (expo), and conference cancellations: Large gatherings and travel have been banned in many countries, making any form of cannabis gathering impossible for the time being.
- Disruption in global supply chains: It becomes a challenge for suppliers to maintain the supply chains, which means that countries depending on imported supply will likely suffer.
- Significant drops in tourism: many people who travel to places for their cannabis products, cannabis variety, and cannabis experiences will no longer be able to do so due to the travel ban. This means a reduction in one of the major revenue avenues for the cannabis market.
- Significant drops in stock market prices: the cannabis industry has seen one of the steepest drops in stock market prices throughout history. The cannabis industry stocks have been more reactive to the virus than regular stocks.
All over the world, cannabis-related expositions, trade shows, and conferences have been canceled or rescheduled. While this is already a big impact on the international cannabis market, the biggest impact of the virus on the market is the disruption of global supply chains. The entire international cannabis market is built upon global supply chains. Most of the cannabis supply in some countries is imported rather than grown, such as it is in Germany. Disruptions in the global supply chains mean that stock is limited and being prioritized for certain patients, while investors fear that the stock markets, including those of the cannabis industry, will send the world into an economic recession.
The international market might, unfortunately, lose investors and revenue as the restriction on its’ movements and general economic functions come to a halt/slowdown.