From Fringe To Essential: How COVID-19 Changed The Cannabis Industry

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As the COVID-19 pandemic surged across the U.S. in 2020, states made significant decisions that highlighted the evolving perception of cannabis. Dispensaries, initially seen as fringe businesses, were declared essential and kept open even as schools and restaurants were closed. This surprising move underscored how deeply ingrained cannabis had become in American culture, as states recognized its value both for medical and recreational purposes.

Cannabis Dispensaries Deemed Essential During the Pandemic

DENVER — As the COVID-19 pandemic reached its third wave in Colorado in November 2020, the state faced stricter lockdown measures. Social gatherings were restricted, and indoor dining was shut down to maintain social distancing. However, unlike in March, when a stay-at-home order initially threatened to close recreational dispensaries, Colorado’s leadership pivoted to declare them essential businesses. This decision mirrored actions in other cannabis-friendly states, reflecting a growing acceptance of cannabis as more than just a recreational substance.

Alexander Thigpen, who worked at a Colorado dispensary during the height of the pandemic, recalled how a last-minute change in the March order prompted a rush of customers. “I had a line around the building,” said Thigpen, 23. “I sold out of everything.” What had once been viewed as a product on the margins of society was now recognized as essential, marking a significant shift in the cannabis industry.

The Cannabis Industry’s Growing Acceptance

The pandemic, despite its challenges, accelerated the normalization of cannabis across the U.S. “Being declared essential was a shock for the business,” said Alan Brochstein, founder of 420 Investor, a platform focused on publicly traded cannabis companies. This essential status not only highlighted the importance of cannabis for medical users but also gave a boost to the recreational market.

While the cannabis industry continued to gain mainstream support, pockets of resistance remained. Dr. Roneet Lev, head of operations at Scripps Mercy Hospital’s Emergency Department in San Diego, expressed concerns in a 2020 op-ed. “Cannabis legalization, both medical and recreational, is driven by financial interests rather than public health outcomes,” she wrote. Dr. Lev emphasized the need for public education about the potential risks associated with cannabis use, comparing it to how the public has been informed about the dangers of smoking.

Legalization Momentum During the Pandemic

Despite ongoing concerns, support for cannabis legalization surged during the pandemic. The November 2020 elections saw traditionally conservative states like Montana, South Dakota, and Arizona legalize recreational cannabis. South Dakota also approved medical cannabis, and Mississippi followed suit. A Gallup poll from the same year showed that 68% of Americans supported federal legalization, the highest level since the poll began in 1969.

The momentum behind cannabis legalization was further bolstered by the economic pressures of the pandemic. Legalizing cannabis offered states a new source of revenue and job creation at a time when budgets were strained. “The pandemic accelerated state-level support,” Brochstein explained. “States need the cannabis business to survive and grow.” Colorado, for example, saw over $9.6 billion in total cannabis sales by October 2020, with over $1.8 billion in sales from January to October of that year alone.

Pandemic-Driven Innovations in the Cannabis Industry

The pandemic also sparked innovation within the legal cannabis industry, particularly in terms of e-commerce and delivery services. States like Delaware, Louisiana, Utah, and New Jersey began allowing cannabis deliveries during the pandemic. A U.S. market survey reported that daily cannabis use among consumers increased by 42% during the pandemic, driven in part by the convenience of legal online purchases.

Companies like Columbia Care, which operates The Green Solution dispensaries, launched virtual events to help customers connect with sales representatives online. “While that strategy grew out of the pandemic, it’s a feature that Columbia Care plans to continue,” said Adam Goers, the company’s vice president of corporate affairs.

The essential designation of dispensaries also boosted investor confidence in the cannabis industry. “The ability to remain open during lockdowns offers confidence to investors,” Brochstein noted. Cannabis companies, once struggling to secure funding, found new opportunities as the industry proved resilient during the pandemic. “The industry is booming. It’s recession-proof and COVID-proof,” said Andrew Hunzicker, owner of DOPE CFO, which provides accounting and tax services to the cannabis industry.

2024 and Beyond: The Future of Cannabis Legalization

As we move into 2024, the cannabis industry continues to see expanding legalization and increasing public acceptance. Federal legalization, while still a topic of debate, has gained more traction. The passage of the MORE Act in the House of Representatives in 2020 marked a significant step toward decriminalization at the federal level, though full legalization remains a work in progress.

Looking ahead, experts predict further state-level legalization efforts, driven in part by economic incentives. “With many states facing budget shortfalls from the pandemic, I expect more states will legalize and tax cannabis for economic development,” said William Bogot, co-chair of the cannabis law practice at Fox Rothschild. Additionally, the push for federal cannabis banking reform through legislation like the SAFE Banking Act could open new doors for smaller cannabis businesses by providing them with greater access to financial services.

While full federal legalization remains uncertain, the U.S. cannabis industry is poised for continued growth and expansion in the coming years. As Brochstein put it, “We’re moving in the right direction, but no one should expect it to happen overnight.”

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Cannabis: The Economic Powerhouse Fueling Growth

The cannabis industry isn’t just about green plants—it’s about green dollars, too! Since legalization, cannabis has become a major economic player in states across the U.S. Cannabis dispensaries are popping up like wildflowers, creating thousands of jobs. From budtenders to cultivators, the industry is buzzing with new opportunities.

States that have legalized cannabis are seeing tax revenues soar. For example, California’s cannabis tax revenues set records quarter after quarter. All that tax money goes right back into the community—funding schools, infrastructure, and public health programs. The ripple effects are huge, and it’s clear: cannabis is an economic powerhouse.

And it’s not just dispensaries getting in on the action. There’s a whole ecosystem of businesses flourishing around cannabis—think packaging companies, tech startups creating cannabis apps, and marketing agencies specializing in CBD products. It’s not just a plant; it’s a whole new world of business!

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Social Justice: Cannabis Leading the Charge for Change

Cannabis is not only changing the economy; it’s also leading the charge for social justice. For decades, communities were devastated by harsh drug laws, and thousands of people—especially in marginalized communities—were locked up for minor cannabis offenses. But now, states are starting to right those wrongs.

As more states legalize cannabis, expungement initiatives are gaining traction. These programs are wiping the records of people who were convicted for things that are now completely legal. Cannabis is becoming a symbol of second chances and fresh starts.

This isn’t just about laws—it’s about changing lives. The legalization of cannabis is opening doors for people who have been unfairly punished, and it’s making communities stronger and more united. The cannabis plant is finally helping to heal some of the wounds caused by the War on Drugs.

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Cannabis and Public Health: A Growing Debate

While cannabis is winning hearts and wallets, it’s also sparking a heated debate in the public health community. Doctors and researchers are asking big questions: How safe is cannabis? What are the long-term effects? And how does it stack up against other substances like alcohol and tobacco?

On one side, supporters highlight the potential health benefits of cannabis, from pain relief to anxiety reduction. **CBD products** have exploded in popularity as people look for natural ways to manage their health. Cannabis is becoming the go-to for stress relief, better sleep, and even managing chronic pain.

But there’s another side to the coin. Some public health experts worry about the risks—like addiction, lung health, and mental health concerns. The debate is far from over, and as cannabis use continues to rise, so does the need for clear, science-based answers.

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Federal vs. State: A Cannabis Tug-of-War

Cannabis is legal in your state but is technically illegal according to federal law. Confusing, right? That’s the current reality for many Americans. Cannabis legalization is spreading like wildfire at the state level, but the federal government still classifies it as a Schedule I drug, putting it in the same category as heroin.

This tug-of-war creates all sorts of challenges. Cannabis businesses can’t access traditional banking services because federal law still views them as illegal. This makes things tricky, especially for small businesses that need loans to grow.

However, change could be on the horizon. Federal legalization, or at least banking reform, is becoming a hot topic in Washington, D.C. If cannabis gets the green light from the federal government, it could open up a whole new world of possibilities for the industry. Until then, the tension between state and federal laws will continue to be a hurdle.

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Emerging Trends: The New Face of Cannabis Consumption

Cannabis isn’t just about smoking joints anymore. The industry is evolving fast, and new trends are emerging that are transforming how people consume cannabis. One of the biggest trends? CBD. This non-psychoactive component of cannabis is taking the wellness world by storm. From gummies to lotions, CBD is everywhere, and people love its calming effects without the high.

Another exciting trend is micro-dosing—taking small, controlled amounts of cannabis to achieve a subtle, balanced effect. More and more people are turning to cannabis for daily wellness, using it to stay relaxed, focused, and in control.

Edibles, oils, topicals—the cannabis industry is getting creative, and consumers are loving it. These products are making cannabis more accessible to everyone, from first-time users to seasoned pros.

The Future of Cannabis: A Sky-High Potential

The cannabis industry is on the rise, and there’s no slowing it down. Whether it’s fueling economic growth, driving social justice, sparking health debates, navigating legal battles, or embracing the latest trends, cannabis is changing the landscape of America.

As we look to the future, one thing is clear: cannabis is here to stay. The only question left is how high it can soar.

Kevin

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