The impact of the Corona Virus on the CBD industry is likely to be positive; surprised? This is why.
The Fear Factor
If you stopped a few random people on the street and asked them what they know about novel Coronavirus or COVID-19, most will just fumble about how much this is a “dreaded disease.” They are likely to equate this to the much dreaded SARS and Ebola pandemics. Beyond this, not many people have taken the time to understand what this viral infection is all about or even if and how it can be cured. This speaks of two things; fear and ignorance.
The media is also playing a key role in spreading the fear factor by constantly repeating the number of confirmed cases and deaths without comparing this to the recovery cases. And as we all know, bad news sells.
With all the fear and panic that is going on around the world increasingly more people will be turning to CBD to relieve anxiety and mitigate fear.
A study that was published in 2019 in Current Psychiatry Reports showed that CBD has a role to play in the regulation of fear and anxiety. The research affirmed that cannabidiol (and anandamide) have anti-anxiety effects and also regulate learned fear.
Unlike tetrahydrocannabinol (THC), CBD is non-psychoactive. This means that all CBD based products will not trigger the euphoric feeling that is associated with marijuana use.
CBD products come in different forms that accommodate different kinds of users. This includes CBD gummies, capsules, tinctures, vapes, edibles, and sprays. At a time when infection control is of heightened importance, single-use CBD products might come in handy. It is up-to forward-thinking CBD businesses to get creative with this.
Benzos Versus CBD
Most people turn to benzodiazepines such as Xanax to relieve anxiety. It is therefore expected that the Xanax sales are likely to go up during this period. However, CBD has one superior advantage over Xanax: unlike big pharma, most CBD businesses are already operating online.
With the self-imposed quarantine and house-hostage situation that is as a result of COVID-19, people are likely to avoid pharmacies as much as they can. On the other hand, one can easily order CBD without having to leave the house. At such a time, CBD appears to be more appealing to risk-averse consumers than traditional anti-anxiety meds are.
Most CBD Businesses Have a Work-from-home Model Already
As we all know, many businesses will continue to reel from the negative effects of coronavirus months after the disease period has lapsed. Businesses that had never conceptualized a work-from-home model have been forced to rapidly adapt to this model regardless of the consequences. This means lower productivity and increased inefficiencies that may trigger huge losses.
Unlike other industries, the CBD industry is largely operated online. Even dispensaries with a physical storefront will usually have an online platform to serve its customers. Coincidentally it is cheaper to operate the online model than it is to run a fully stocked and staffed physical CBD dispensary. With all the right frameworks in place, CBD businesses are likely to have “business-as-usual” even as other businesses struggle to adjust.
Is the CBD industry profiting from this “deadly” coronavirus?
Well, it seems that there are significant benefits that a well-positioned CBD business can harness from this unfortunate happenstance.
The CBD Industry is already causing ripples
The CBD industry is on the verge of a breakthrough; having succeeded to get past decades of prohibition and stigma. In 2018, the FDA legalized the first CBD-based medicine – Epidiolex for the treatment of intractable childhood seizures. This move heralded the acceptance of CBD as a mainstream therapeutic product.
Across the globe, several governments have okayed CBD use for the treatment of various medical conditions, anxiety included. Medicinal cannabis has been legalized in the US, UK, Canada, Australia, and Portugal among other nations. Where it is not yet legal, CBD is an ongoing conversation.
At such a time when fear and anxiety have gripped nations at an unprecedented level, it is highly likely that the CBD conversation will go on. It is up to CBD businesses to position themselves to address the challenge in the best way possible.
Myths versus Facts
The incidence of Coronavirus has caused paralyzing fear across the globe. Rich and poor nations alike have been shaken while the full impact of this disease is yet to be known. Having no known cure in the foreseeable future many will be forced to live in perpetual fear of this viral respiratory disease.
We cannot dispute one fact; coronavirus will have a huge negative effect on the global economy, as it is already happening.
However, it is a myth that all businesses will be affected similarly. Some businesses stand to benefit from this unfortunate event, as is always the case with every calamity. Businesses that rise to offer solutions for the coronavirus pandemic will have a fighting chance even as other businesses are brought to their knees.
The impact of coronavirus on the CBD industry will be determined by how well-positioned CBD businesses are to address the emerging needs effectively.