With the threat of a recession hanging over the U.S. economy, the nation’s cannabis industry appears to be on shakier financial ground than when the last downturn struck two years ago, at the start of the COVID-19 pandemic.
Marijuana companies weathered the 2020 coronavirus-induced recession relatively well, with sales booming thanks to federal stimulus checks and anxious consumers turning to cannabis for stress relief.
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The industry emerged relatively unscathed by the recession.
This time around might be different.
Cannabis industry executives point to rising inflation – which tends to curb consumer purchases – as well as the lack of progress in Washington DC for federal marijuana reform.
Other factors are at play, too.
Newer state markets with limited licenses – think Florida, Illinois, Massachusetts, New Jersey and New York – commonly experience relatively higher wholesale cannabis prices and a less competitive landscape.
Industry officials said marijuana companies in
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