Nearly Two-Thirds of Cannabis Cultivators Say COVID-19 Has Impacted Their Businesses

Nearly Two-Thirds of Cannabis Cultivators Say COVID-19 Has Impacted Their Businesses

According to Cannabis Business Times’ 2020 State of the Industry Report, 63% of participants reported that the pandemic has affected their companies, resulting in decreased sales and staff cuts for some, and a jump in sales for others.

June 22, 2020

Cannabis Business Times conducted research for its fifth annual “State of the Cannabis Cultivation Industry Report” between April 15 and April 29, 2020, amid the COVID-19 pandemic that the world is still very much grappling with. The report, made possible each year with the support of Nexus Greenhouse Systems, included the question “In what ways, if any, has the COVID-19 outbreak impacted your cannabis operation?” Although at that time and even now, it may be too soon to understand what the long-term business impacts will be, 63% of participants indicated that COVID-19 has already affected their operations, with the following ramifications: “decreased sales” (23%), “staff reduction/hours cut” (22%), “suspension of some operations” (21%) and “suspension of all operations” (4%).

However, cannabis cultivation operations and dispensaries, deemed essential in most places, could continue operations during state shutdowns, which may have explained some of the positive outcomes for some during what was a difficult time for many. Nearly a fifth of participants (18%) reported increased sales, and 5% said the increased staff/hours. Another 35% said the pandemic had no impact on business.

Read more insights from CBT’s 2020 “State of the Cannabis Cultivation Industry Report” by following the links below:

Report Cover Page

Letter: Five Years Inside the State of the Industry

Introduction:  Tracking Data Reveals Industry Shifts, Sustained Growth

2020 Cannabis Research: Revenue and Profits Plateaued, But Solid

2020 Cannabis Research: Where Cultivators Grow

2020 Cannabis Research: Industry Optimism, Expansion Continues

2020 Cannabis Research: Challenges Are One Constant in a Dynamic Industry