The cannabis industry grew despite all the adversities during COVID: Here’s Why You Should Invest

By Nina Zdinjak

“Crisis can … be a catalyst or accelerate impending change – it can almost act as an accelerator,” said Arun Sundararajan, professor at NYU Stern School of Business and researcher in digital transformation. And it’s true.

We are all aware that the COVID pandemic has had a negative impact on the overall economy, even though some industries are thriving because of it and not anyway. Which one do you think of? Pharmacy? E-commerce? Play online? Ed tech? Or cannabis?

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As you probably know, the marijuana field saw growth, albeit quite unexpectedly, during the pandemic.

Industries and stocks that thrived amid COVID

But first things first. Figures from the census showed that e-commerce sales in the second quarter of 2020 increased 31.8% from the previous quarter, while total retail sales decreased 3.9% over the same period.

Retail e-commerce, as the share of total retail sales increased from 11.4% to 15.7% during this period, and e-commerce increased 43.8% in the second quarter compared to the same period in 2019 , while total retail sales decreased 3.6%.

In terms of stocks, e-commerce giant is Amazon grew by 67.64% January 2020 until today. The other big ecommerce brand Shopify Inc. 240.25% won in the same period of time.

Then there is pharma and online gaming in addition to other stocks that have grown under COVID.

Fortune sets out some of them:

NYSE-traded British-Portuguese online luxury retailer Farfetch has managed to reach profitability after 12 years thanks to the COVID outbreak. In a year, the stock rose 426% from $ 10.48 to $ 55.19.

Demand to work from home fueled freelance services platform Fiverr, with shares rising 703% from $ 27.87 to more than $ 224 (March 2020 to March 2021).

Consumer electronics and toy retailer GameStop posted an impressive annual return of 6.422%, with its shares rocketing from $ 3.70 to $ 241.34.

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What about COVID-19 vaccine developers Pfizer, Moderna, and Novavax? From March 2020 to December 2021, Pfizer grew 83.22%, Moderna 509.54%, and Novavax 1148.71%.

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Marijuana and COVID

So what about the cannabis industry? Why was the pandemic a breakthrough for the marijuana sector?

Many factors play a role, starting with it being classified as an “essential” business, which in turn drove cannabis sales to record highs in 2020. When the New York Times stated that the essential service designation was “official recognition that cannabis is as necessary as milk and bread to some Americans,” it was agreed that in a time of crisis we all turn to what we need Comfort, peace and helps relieve stress. Not to mention those who have used cannabis for medicinal purposes and bought it carefully because who knows what could happen?

RELATED: Should You Buy, Sell, or Hold Cannabis Stocks Now?

Fortunately, as we know, there was no shortage of patients when the boom set in. “Cannabis sales skyrocketed in much of North America in 2020, with countries like Oregon increasing 30% year over year. In Canada, half of cannabis users increased their use during the first wave of COVID-19, according to the country’s Center for Addiction and Mental Health, ”reported Investment Monitor.

According to Geoff Miller, director of Cannafi Group, a cannabis finance company based in Guernsey, “Because cannabis can be easily ordered online, it has weathered the wave of COVID e-commerce. Then it was a boom in terms of investments [thanks to] the enormous amount that retail investors have pumped into many different sectors – because they have nothing else to do – and the fact that we still have extremely low interest rates, which has driven asset prices up and stimulated general investment. ”

Additionally, the industry in general, and cannabis companies in particular, have made innovative decisions to help fight the coronavirus pandemic. Hemp companies made cotton swabs for medical supplies and marijuana companies donated protective gear to frontline medical workers.

Photo by Anna Nekrashevich from Pexels

The timely and efficient introduction of roadside pick-up and delivery services made it easier for consumers in need while also helping to create a positive image of the industry as a serious player in good times and bad. The cannabis industry has strengthened.

What about public cannabis companies?

Major marijuana operator Curaleaf Holdings (CSNX: CURA) rose its stocks 73.22% from March 2020 to December 2021. Over the same period, Village Farms International was up 95.52%, GrowGeneraion Crop was up 168.15%, and Innovative Industrial Properties was up 175.63%.

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Additionally, the AdvisorShares Pure Cannabis ETF was up 40.11%, which is noteworthy despite being below the SPDR S&P 500 ETF Trust which was up 67.28%.

It’s important to note that most cannabis stocks rose in February of this year, or a year since the pandemic broke out in March 2020. Most of these stocks were down by the end of the year.

Cannabis Industry Forecasts – Why You Should Consider Investing?

Why should the industry continue to grow and why should you invest in it?

Several things indicate the further development of the industry, the most important of which is the ongoing legalization trend both in the US and worldwide. To date, 18 states and the District of Columbia have legalized the sale of recreational cannabis, while more than 30 states now allow some form of medicinal cannabis.

Additionally, both Democratic and GOP lawmakers have tabled proposals to legalize marijuana, suggesting federal reform is imminent.

RELATED: Here’s what the cannabis industry is most optimistic about as we head into 2022

As for Europe, Malta became the first country in the EU to legalize marijuana this year. Germany recently announced plans to legally allow the sale of cannabis, which will create the largest EU market with an expected annual tax revenue of $ 3.5 billion. Switzerland has launched a legal market study for cannabis for adults to investigate future regulation.

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In addition to the ongoing global trend towards legalizing marijuana, there is an overall shift in people’s attitudes towards general health. Over the years the focus has shifted from, well, literally everything around us to our home: ourselves. Today, more than ever, people seem to be interested in healthy eating, nature, time for themselves, ways to minimize stress Interested in improving sleep and the importance of physical and mental health.

And this is exactly where the cannabis plant fits in perfectly.

Whether users are interested in non-psychoactive use through a variety of CBD products or are looking for a full THC experience, cannabis has the ability to offer both. More and more scientific studies are revealing the knowledge and beliefs about the benefits of cannabis that our ancestors had.

On the medical side, advances are already rapid, with medical cannabis initially a viable option for children with rare types of epilepsy. A recent study of cannabis and breast cancer found that medical marijuana produced a six-fold improvement in killing cancer cells; Another study on CBD gives hope for the most aggressive type of brain tumor.

And these studies are just the beginning. Once the legal status of cannabis at the federal level is cleared, more research can be done that will ultimately benefit the entire industry, including consumers, cannabinoid drug needyers, and investors.

This article originally appeared on Benzinga and was republished with permission.