US cannabis sales plummet after record highs

Published May 12, 2020 12:00 p.m. ET
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Cannabis sales are skyrocketing in a country where federally cannabis remains illegal. Yes, there are 33 states that look on cannabis as legal for medicinal use and 12 states where you can legally light up and enjoy your herb as a recreational hobby. Recreational dispensaries are popping up throughout the states that have a welcome sign for legal cannabis on the front door, facilitating the record high cannabis sales.

Sales of cannabis in the US were set to go up with a 35% percent rise in 2019 and projected to continue to climb to about $28 billion by the year 2021. Then the heavy hammer of plummeting sales numbers arose, as deaths were being attributed to vaping.  This was reflective in the way that the sales went, steadily spiraling downwards.

Cannabis news is buzzing, and the report is that the time has ended for the massive sales that the recreational dispensaries had been enjoying. Cannabis concentrates have seen sales drop by 25%. Vape accessories also took a hit. This noted drop in sales was over a short two-month period, according to the cannabis news enlightening experts. Arcview Market Research has reported that cannabis vapes sales have drastically plummeted. At the peak, the sales topped $160 million; the dropping of sales in two months is reported as being around $41 million.

The best intentions

Vapes were produced with the intent to increase the legal cannabis sales in the green space. The vape products are perhaps the cannabis industry's fastest-growing product category area. This product category area showcases some of the industry's most creative marketing and product initiatives. Today Vaping popularity is the central pillar for the future growth of cannabis sales. This being noted, it is imperative for the salesperson to understand the terrible impact that the vaping crisis will have on the market and to know how to redirect the negativity.

Another important reason that the US saw such a drastic drop in cannabis sales is COVID-19. Initially, the essential service business or as we know it, the recreational dispensaries saw record highs in the cannabis sales that the stores reported. Was it fear or greed? Perhaps the rush was driven by the fear that cannabis stores may need to be closed indefinitely.

Currently, point-of-sale data indicates daily sales in the state of California spiked by 159% over sales on the same-day in 2019. Then COVID-19 came into our lives like a thief in the night, and recreational dispensaries saw their sales plummeting. Essential service by way of recreational dispensaries has owners on edge.

This is the second round of defeating circumstances that the cannabis space has to endure within a short time, but the plummeting cannabis sales are now over because of people hoarding the cannabis that is available cannabis sales are on the rise again. Cannabis sales will rebound for many reasons.  Recreational dispensaries are, for some, a way of life, and in today’s seemingly powerless situation, cannabis can be the road to peace and moving forward in a crazy scary world.

Two High Times magazines have suspended publication due to COVID19

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