The cannabis industry could be the ideal shock absorber in the face of the economic downturn caused by the COVID-19 pandemic. According to a new report by the intelligence company Prohibition Partners, cannabis appears to be a “recession-proof” investment amid the ongoing global economic crisis.
Cannabis could repair global economy
Since the beginning of the Coronavirus scourge, countries across the world continue to reel under its effects. Global lockdown and closed businesses have taken a heavy toll on the economy. However, amid the crisis, the cannabis industry seems to offer a solution.
According to the survey, three major economies of the US, Canada, and the Netherlands declared cannabis an “essential” good. Last month, the Retail Gazette reported that consumer confidence in the UK is already “battered and bruised” regardless of the lifting of some lockdown restrictions. The situation is expected to remain fragile for quite a while before the economy restores.
The new survey from Prohibition Partners shows that the cannabis sector has remained resilient amid the COVID crisis. Both recreational and medicinal wings of the cannabis industry are doing well. According to the research, most consumers of cannabis products expect the pandemic to have no impact on their purchase habits. Besides, they expect their consumption to rise, especially in health and wellness products such as medicinal cannabis, oils, gummies, or tinctures.
UK and US to consume more cannabis products
The research reveals that both the US and the UK are expected to consume more cannabis products. The consumption rate in the two countries is expected to increase in the next three months, as consumers target more CBD/hemp infused products. With increased consumption, the cannabis industry is expected to continue weathering the storm and even thrive amid the crisis.
During the survey, Prohibition Partners involved 3,155 adults aged sixteen years and above who have used recreational cannabis in various countries including France, Germany, Canada, Switzerland, Spain, the UK, Japan, and the US. Up to 32 percent of the respondents said they expected their consumption to increase. On medicinal cannabis use across the same countries, the company surveyed 1,817 adults aged sixteen years and above, who had used medical cannabis in the last 12 months. Of these, 35 percent expected their consumption to rise.
Jonathan Nadler is the Group Managing Director at Lyphe Group, one of the UK’s largest medicinal cannabis access groups. He said:
In the last 12 months, UK prescriptions for medical cannabis have seen a 150% rise, and we are hopeful for considerable continued growth for the rest of 2020. We calculate growth by considering public information on fulfilled prescriptions and estimating private prescriber and prescription numbers.…. Furthermore – there has been a significant step change since the beginning of COVID-19, with a larger volume of patients and a much quicker process to complete the initial consultation with the patient.