The cannabis industry has seen a major rise in demand for marijuana since the coronavirus pandemic took hold. With so many states in the U.S. posting stay-at-home orders, many have turned to cannabis to kill the time. This means that some leading marijuana stocks have seen some big benefits from this demand rise. But, the real benefit goes to the local cannabis industries around the country. These local areas have seen sales rise significantly in only a short period of time.
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With many businesses struggling heavily during this awful time, cannabis businesses have largely managed to stay alive. Of course, large cannabis industries like California and Oregon are seeing the bulk majority of the rise in demand, but other newer cannabis markets are also seeing major benefits. One of those markets is Illinois, where cannabis was only legalized a short while ago. In the state, they have witnessed demand rise significantly only 30 days after the stay-at-home order officially went into place.
The Cannabis Industry in Illinois
A recent report came out detailing just how big the rise in demand for cannabis is in Illinois during this month. The report states that residents purchased around $2.6 million worth of cannabis, more than they usually would. Although cannabis only became legal there a short while ago, it seems as though it has already worked to witness major success. According to the report, last month customers bought as much as $37 million worth of cannabis with the majority being purchased by residents of the state. Many would have believed that the lack of tourism would contribute to a loss in revenue, but this has not held true. Rather, out of state consumers purchased around $7 million worth of the stuff during April alone. That represents over $1 million more over the previous month.
Although this does not tell the whole story, the reality is that the cannabis market in Illinois is adapting to the present. This is something that most cannabis companies have had to do to stay alive during this pandemic. The state also has kept dispensaries and cultivation operations in business by deeming them essential. This means that they are allowed to stay open with certain regulations in place. It continues to appear as though the Illinois market is a small example of the cannabis industry is overcoming the world’s struggles.
What Will Happen For the Cannabis Industry and Pot Stocks Moving Forward?
Although there are not a lot of major marijuana stocks that operate in the Illinois market, there are some that have benefitted from the growth in demand. Although it remains slow, many marijuana stocks have worked to up their production to meet the growing demands of the time. Toi Hutchinson, a senior staff member in the state was quoted saying that “our top priority is to ensure consumers are safe when they go to a dispensary to purchase cannabis. The steps we’ve taken to increase social distancing at dispensaries are accomplishing that, while also enabling this new industry to continue to grow.”
So as we move into the near future, it will be interesting to use Illinois as a case study for how a cannabis market can grow quickly. But, as always, the hopes are that this pandemic can come to an end soon, and things can get back to normal.
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