Coronavirus Lockdown: Cannabis Industry Overview
By: Alphagreen Team
Tags: Cannabis, Cbd, Cannabis Medical, Covid 19

During the COVID-19 turmoil, the closure of dispensaries and brick-and-mortar stores is a matter of concern. Those who suffer from chronic diseases may wonder how and where to get medicinal cannabis. They may be bothered with more global issues such as what will happen in the future? Will worldwide manufacturers run out of the ability to provide cannabis further? So far, the situation doesn’t seem so bad, and everyone seems to adapt to the changing environment. In this article we will consider how are things with medicinal cannabis and what to expect from the future but first let’s start with the basics.

What is coronavirus?

You have probably heard more than enough about the novel coronavirus. However, practice makes perfect, especially when the media is loaded with misleading information. As an example, the terms “coronavirus” and COVID-19 are often used interchangeably. It is more accurate to say that COVID-19 is an infectious disease, caused by the novel coronavirus SARS-CoV-2.

Coronaviruses are known for a long time and unite a large family of viruses that cause respiratory infections ranging from the flu or cold to more severe ones such as Severe Acute Respiratory Syndrome (SARS) or Middle East Respiratory Syndrome (MERS). This new virus and disease were unknown before the outbreak began in Wuhan, China, in December 2019.

People can catch COVID-19 from other people who have the virus via airborne droplets. It doesn’t mean jumping to the side each time someone sneezes or coughs. However, keeping a distance of more than 1 meter away from a person who is sick is the right thing to do.

Even though the virus spreads through respiratory droplets, the risk of catching COVID-19 from someone who has no symptoms is low. And yet, you can get the virus from someone with mild symptoms. The risk of catching COVID-19 from the faeces of an infected person is also low. There is also no evidence that any pets can transmit the virus though there is one case of an infected dog in Hong Kong.

So far, there is no vaccine or approved medications that may act against the disease. The treatment is focused on the alleviation of the symptoms. Antibiotics do not work against the virus and should not be used to prevent or treat COVID-19. The WHO does not recommend self-medication to prevent or cure COVID-19.o Now the hopes come from ongoing clinical trials that include drugs available on the market, such as Chloroquine.

How to protect yourself from the virus?

The most important recommendations are to stay at home and not panic as your immune system can respond to stress in a way that harms health. It is worth staying aware of updates on the COVID-19 outbreak, available on the WHO and national and local public health authority websites. Try not to believe each piece of information that pops up on your screen.

Some simple precautionary measures may help to prevent the virus or prevent its spread:

Regularly and thoroughly wash your hands with soap and water or clean them with a sanitiser;

Keep at least 1-metre distance between yourself and anyone who coughs or sneezes;

Use a tissue in case you cough or sneeze or your elbow;

Avoid touching eyes, nose and mouth as it may transfer the virus;

Stay home and self-isolate if you feel unwell and have a fever, cough and difficulty breathing. In such a case, you should seek medical attention and follow the directions of your local health authority.

As for the masks, they are only necessary if you have COVID-19 symptoms or take care of someone who may have COVID-19. Due to a global shortage of masks, the WHO encourages people to use masks wisely.

The state of medical cannabis in the world

What is medical cannabis?

Medical cannabis, or medical marijuana, includes cannabis and cannabinoids prescribed by doctors for their patients and taken for medicinal purposes. Medical cannabis uses the same parts of the cannabis plant just as a recreational one but used to treat various health conditions. The cannabis plant contains over 100 cannabinoids. All of them have a different effect on the body. Among the most well-known are tetrahydrocannabinol (THC) and cannabidiol (CBD). THC can also produce a psychoactive effect, known as the “high”. People feel it when they smoke marijuana or eat foods that contain it.

You may think that marijuana is a drug of the hippies time, but people have been using the cannabis plant for medical purposes for a long time.

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Scientific research suggests that cannabinoids may be helpful in many health conditions:

chronic pain and inflammation,

stress and anxiety,

neurological disorders,

nausea and vomiting,

appetite and sleep loss,

mental health conditions,

cancer symptoms,

muscle spasms,

some eye conditions.

Cannabis use may increase the risk of minor and significant side effects such as dizziness, tiredness, nausea, and hallucinations. Long-term effects of cannabis are not apparent, and patients should be examined by a physician.

Medical cannabis can be administered in different ways, such as:

pills or capsules,

oils and tinctures,

dermal patches,

sprays for oral or dermal use,

cannabis edibles,

smoking and vaporising dried buds.

Some countries also allow for the use of synthetic cannabinoids.

Countries that permit cannabis for medical purposes include Canada, Australia, Chile, Colombia, Greece, Germany, Israel, Italy, the Netherlands, Poland, Peru, Portugal, and Uruguay. In the United States, 33 states and the District of Columbia have legalised cannabis.

What is the difference between medical and recreational cannabis?

In short, the major differences are the reason for the product use and the laws of the country in which the cannabis is used. Recreational cannabis or marijuana is any form of product used without medical justification.

Here are the main differences between medical and recreational cannabis:

Usually, recreational cannabis is associated with strains that contain a high THC level. That means a high probability to feel the “high” effect. Even though there’s no real difference between the concentrates and flowers of both cannabis types, the potency of medical cannabis edibles is generally higher than recreational ones.

Recreational cannabis may contain a higher THC concentration than medical type. People who prefer psychoactive effects over benefits may choose this type.

Medical cannabis must be prescribed by a physician, and you need to have a qualifying condition to get a recommendation for it and can buy it from a regulated dispensary. Recreational marijuana can be purchased by anyone in need of a recreational dispensary and doesn’t require a recommendation or a medical card.

There may be different age limits for both cannabis types. Usually, you need to be over 18 to buy medical cannabis from a dispensary. However, due to some circumstances, some people under 18 can apply for a medical marijuana card. These regulations vary in different countries. In most cases, you need to be over 21 to buy recreational marijuana from a dispensary.

Can cannabis be helpful for COVID-19?

The potential of cannabis and CBD products for the novel coronavirus is yet to be considered. However, some promising benefits are already proven by numerous studies.

Scientific research shows that cannabinoids may influence the immune system, viral pathogenesis, and viral replication. Moreover, stimulation or suppression of cannabinoid receptors during viral infections may be useful for the development of safe and effective antiviral treatments. CBD may stimulate the immunity system, which is beneficial for managing viruses. Cannabidiol is shown to cause anti-inflammatory effects in the case of multiple sclerosis, which is useful for conditions with an inflammatory component.

Studies have suggested that CBD may stimulate cell death in cells infected by the virus, that can accumulate mutations and become dangerous. However, it doesn’t concern healthy cells. Cannabis also has the therapeutic potential for the treatment of viral hepatitis.

Due to the bi-directional effect of, CBD may either suppress or encourage the production of cytokine, interleukin-2 (IL-2), and its receptor IL-2R, that are important for maintaining the balance.

Moreover, numerous studies have shown that cannabidiol may help to improve sleep and lower anxiety, which is helpful during pandemic times.

In general, CBD products may positively influence the endocannabinoid system, necessary for the balance in the immune system and its response to viruses, such as the COVID-19. The stable immune system is ready to adapt to the high-risk environment, suppress dangerous over-reactions, and improve under-reactions.

How to store cannabis products?

The study from the Journal of Pharmacy and Pharmacology has stated that cannabinoids can be stable up to two years if they’ve been stored properly. Right storage requirements mean more than placing the pack in your drawer. If you would like to enjoy your cannabis in the long run, you need to create the perfect environment.

The main factors that may damage your precious cannabis include:

Light

Light is thought to be the most significant factor in your cannabinoids degradation as it may destroy valuable compounds in cannabis, such as cannabinoids and terpenes. Keeping the product in the non-transparent container and out of direct light may help to avoid loss of important chemicals and control the temperature.

Air

The right amount of air is important for keeping cannabis fresh. Another significant factor in long-term cannabis storage is the oxygen level. Too little air can alter the relative humidity and cause mould or mildew, especially if the plant buds are not completely dried before storage. Too much air may speed up the degradation process of cannabinoids.

The best way to protect cannabis from oxygen exposure is to vacuum seal it and keep it in canning jars of the right size.

Moisture

Excessive moisture can cause mould, so it is important to keep buds dry. However, quality buds can’t get too dry and lack essential oils. The best way is to maintain proper humidity levels, ideally in the range of 59–63 relative humidity. You can use special pods for humidity control.

Temperature

High temperatures can dry out cannabis buds and make terpenes evaporate, which leads to harsh smoke and an unpleasant flavour. As mould occurs at temperatures from 78 to 86 degrees, the perfect storage temperature for cannabis shouldn’t exceed this level.

Don’t store cannabis in the refrigerator, freezer, plastic bags or containers. Store grinders and pipes away from cannabis.

The same recommendations apply to CBD products. Cool, dark location with a proper humidity level is the best choice of storage space.

Why does medical cannabis access get critical?

You’ve probably seen the pictures on social media of long queues outside coffee shops in the Netherlands. Many businesses were ordered to close or decided to restrict their activities during the outbreak. Customers were standing in the queues to beat a deadline and manage to stockpile cannabis products for the long weeks of lockdown.

During COVID-19, the question where and how to get your medical cannabis gets more complicated, especially for the immuno-compromised people who can’t go to the store that easily without posing a real risk to health. So, one of the most important concerns for medical cannabis patients is how to get cannabis supplies while safeguarding health.

How to get medical cannabis in the time of COVID-19?

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There are several ways to get the needed medical cannabis stuff:

Online delivery

Many dispensaries, including those for medical products, offer to place the orders via the phone or online and deliver them directly to a patient’s home.

Curbside delivery

This type of delivery is an excellent option for those dispensaries that do not offer delivery while doing their best to provide safe patient access to cannabis. Customers can place an order online, then drive to a dispensary and get their cannabis delivered to their vehicle.

Telemedicine

Telemedicine with medical cannabis programs is widely offered in the US. Those in need may consult with doctors and get treatment recommendations while staying at home. Many states provide virtual encounters for renewals, but not for initial consultations.

Hopefully, many dispensaries that remain open during the quarantine have made their hygiene measures stricter to minimise the spread of the novel virus.

Some dispensaries that remain open keep the recommendations of social distancing and regularly clean surfaces and premises. Some dispensaries have special hours for older people and other vulnerable groups.

It is worth mentioning that medical cannabis patients can also use recreational cannabis to treat illness or pain. However, in this case, they have no doctor’s administration and would purchase it illegally. These individuals may find it challenging to get cannabis during the lockdown. That is why some advocates recommend a moratorium on recreational dispensaries.

The state and perspectives of the global recreational cannabis market

In the mid of 2019, the recreational use of cannabis was considered illegal in many countries except for Canada, Uruguay, and 11 states and the District of Columbia in the United States. The United Nations added the cannabis plant to its list of Single Convention on Narcotic Drugs, prohibiting its use for recreational or medical purposes. The Single Convention on Narcotic Drugs of 1961 is a global treaty to forbid production and supply of specific (normally narcotic) drugs and drugs with similar effects apart from under licence for medical treatment, research, and other specific purposes. That is why recreational cannabis remains illegal in many places and data regarding its consumption is lacking.

According to Euromonitor International report in February 2019, the current global market for cannabis is estimated at US$150B. So far, North America is considered the largest legal market and may keep this status up to 2024. The US sales of recreational cannabis exceeded half of the total legal cannabis sales in 2018, while Canada’s legal recreational sales reached the fifth part of total legal sales in 2018. These countries are expected to get a more considerable opportunity in the recreational market. According to BDS Analytics, Canada is expected to reach 93% contribution or US$4.8B, from recreational sales to its total legal sales in 2024; similarly, NCIA reports the US could reach more than 69% contribution from legal recreational, or US$15.7B, in 2022. Uruguay legalised recreational cannabis for purposes in December 2013 but started the sales in pharmacies in late 2017. However, the growth in the country’s legal cannabis market was slow, challenged by supply-related concerns.

According to The European Cannabis Report, 4th Edition by Prohibition Partners, the illegal drug market in Europe exceeded €40B in 2018, with a significant share of cannabis. If medical cannabis and recreational cannabis will be legalised in all countries in Europe by 2023, the European recreational market is expected to grow to €65B by 2028. Therefore, the growth can be encouraged by new products and improved supply and distribution channels due to the anticipation of future legalisation.

So far, recreational cannabis use, though in small amounts, have been decriminalised in Italy, Spain, Netherlands, Portugal, Greece, Belgium, Austria, Croatia, Malta, and Slovenia. According to The European Cannabis Report 4th Edition, some countries such as Germany, Denmark, Malta, Greece, and Italy have discussed the possibility of an entirely regulated recreational cannabis market. Luxembourg authorities have announced plans to legalise recreational use before 2023. France has legalised high CBD/low THC products across categories but has no plans to legalise recreational cannabis and may authorise it only for medical purposes.

France, Italy, Spain, the Czech Republic, and the Netherlands have the highest rates of cannabis use in Europe. Amsterdam is still considered a haven for recreational cannabis. In Italy, high-CBD, low-THC cannabis, known as “cannabis light” is being sold across the country, but high-THC products are sold in the black market.

According to the ECMDA, Statistics Bulletin 2018, the UK is on the 9th place with 6.6% cannabis use in Europe.

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In Asia, cannabis was mostly legal and used in traditional medicines up to the 1930s. Then, following the US actions, the United Nations added the cannabis plant to the list of Single Convention on Narcotic Drugs in 1961. Moreover, multiple religions of the region had a zero-tolerance toward cannabis use. According to the UNDOC World Drug Report 2019, the market of recreational cannabis in Asia is underdeveloped, and the level of cannabis use remains low, up to 1.8% in 2017.

According to the Asian Cannabis Report by Prohibition Partners of 2019, the size of Asia’s recreational market is expected to exceed US$2.7B by 2024. There is an assumption that all the countries of the region will have the medical cannabis legalised and recreational cannabis regulated (except China) by 2024. As per the UNDOC World Drug Report 2019, the rate of cannabis use in Africa accounts for 6.4% in 2017 annually. According to the African Cannabis Report by Prohibition Partners, the recreational cannabis market can surpass US$6.3B by 2023 with potential legalisation of medical cannabis and regulation of recreational cannabis in these countries by this time. This assumption concerns South Africa, Zimbabwe, Lesotho, Nigeria, Morocco, Malawi, Ghana, Eswatini, and Zambia.

According to the LATAM Cannabis Report by Prohibition Partners, the recreational cannabis market in Latin America may reach US$4.2B by 2028, on conditions of an entirely regulated and legalised market. The prices for cannabis products are the lowest in the world due to a favourable climate for cannabis cultivation, cheap land, and mild labour laws. The same report states that low-quality cannabis and a weak currency exchange rate are reasons for the lowest cannabis prices in Europe and North America. Uruguay was the first country that fully legalised cannabis in December 2013, but the first legal sales started on July 19, 2017.

Who are consumers of recreational cannabis?

The illegal status of recreational cannabis makes the market and global trends of the recreational use of cannabis non-transparent. Among all countries, Canada has data available due to the legalisation and federal regulation of cannabis. Therefore, recreational users and their behaviour can be considered an example of Canadian consumers.

The Cannabis Act was taken into the force on October 17, 2018, making Canada a leader in the global cannabis market and the first G7 nation that fully legalised the use of cannabis by adults for recreational, medical, and industrial purposes. The Act establishes a strict legal framework to regulate the production, distribution, sale and possession of cannabis in Canada.

Under this Act, adults who are 18 years of age or older can legally:

own up to 30 grams of legal cannabis in dried or equivalent in non-dried form in public

share not more than 30 grams of legal cannabis with other adults

buy fresh or dried cannabis and cannabis oil from federally-licensed producers or a provincially-licensed seller

grow from licensed seed or seedlings (not more than four cannabis plants per residence for personal use)

make cannabis products such as beverages and food at home provided that organic solvents are not used to produce concentrated products

However, the legalisation of cannabis for recreational use is estimated to result in the medical spend declining at a CAGR of 3% up to 2024 to reach US$381.4M.

In December 2019, Canada allowed authorised distributors and retailers the sale of cannabis extracts, cannabis edibles (candy, baked goods), and cannabis “topicals” (ointments, oils, makeup) for adult use.

According to BDS Analytics, the recreational cannabis spend after legalisation in Canada reached US$112.5M and is expected to reach US$4.8B by 2024. The consumption of recreational cannabis in Canada is anticipated to reach 860.8 metric tonnes by 2022, which is twice more than in 2018.

According to “A society in transition” report by the traits of the typical user of recreational cannabis include:

Young individuals with a high school or college education. They are often called risk-takers as opposed to “live life to fullest”. The feeling of thrill makes them consume more, even at the risk of their being caught in an illegal act or have their health or safety compromised. According to the National Cannabis survey by Statistics Canada, up to 5.3M people above the age of 15 consumed recreational cannabis in Q1 2019. The males have a prevalence rate, with 22% against 13% of female users. Young users from 15 to 24 years had a prevalence rate of 30%, against a 16% rate in the age of 25 years and older.

Middle-aged individuals with a university or graduate school education, defined by Deloitte as conservative experimenters. Due to familial responsibilities, this category does not believe in defying the law. Usually, they are not newcomers: 74% of them have consumed recreational cannabis, and 41% had prior experience with it in the last five years.

As per “A society in transition” report, two-thirds of the recreational consumers in Canada consumed cannabis for a proper relax, better sleep, or lowered stress and anxiety.

The risk takers preferred to take recreational cannabis for the following reasons:

to spend time with friends

to be in a better mood

to heighten senses

to make activities more fascinating

According to study results from the Journal of Studies on Alcohol and Drugs, young people in the United States may also use cannabis to feel good, reduce boredom, alleviate tension or frustration, escape problems, and change the effects of other drugs. The users in Canada have similar motivational factors for recreational use.

Up to 20% of current users use cannabis regularly, while 33% consume it at least once a week. The cannabis legalisation is considered to have little impact on the consumption frequency of those who consume cannabis often. Conservative experimenters are expected to use cannabis from time to time.

Despite a vast difference in legal and illegal market prices, Canadian consumers of cannabis prefer legal channels. According to the National Cannabis Survey, less users chose cannabis from illegal sources in the first three months of 2019 (38%), in comparison to the first quarter of 2018 (51%). Deloitte’s report states that almost half of the users prefer government or licensed private retail stores due to a guarantee on the safety of the products. Approximately a third of cannabis consumers were interested in purchasing online from government retailers and licensed private retailers to maintain their anonymity, due to the cannabis reputation.

How did coronavirus affect the cannabis industry?

The novel virus has influenced the consumption patterns of cannabis users. Anticipating the lockdown and possible lack of cannabis products, most users have stockpiled in advance. The rush to dispensaries was also caused by the desire to cope with stress by using cannabis. Users of medical cannabis are the most likely group to keep current levels of consumption, while non-medical users may either increase or decrease consumption. However, dosage recommendations will remain stable. Moreover, many people have chosen self-quarantine. These users may receive cannabis products through delivery, but demand would likely drop if the number of confirmed COVID-19 cases keep on rising.

In the US demand was surpassing supply even before the coronavirus pandemic stockpiling. 2019 was a grand year for US cannabis sales, and the further pandemic panic has just strengthened the burst. Some experts claim that cannabis companies may still experience steady demand, though sales of some specific products such as edibles and drinks might be up to 30 per cent higher had COVID-19 not happened. While some businesses were enjoying record stock prices and boom times, many public cannabis company stocks went down more than 75% in relation to early 2019, which challenged the access to capital across the sector.

Some companies may face shortages in supply in the coming months due to border restrictions and unavailable logistics. Cannabis deliveries throughout many countries have been delayed as most supply chains originate in China, a low-cost and leading producer.

Many stores and dispensaries are temporarily closed during the pandemic, while others are limiting hours or offer online orders and home delivery. Job cuts for the industry are also increasing faster than expected.

Many trade-show and industry events have been discouraged from visiting or cancelled to slow down the spread of coronavirus. This included numerous important trade shows for the cannabis industry, which were set to place in the U.S., Canada, and Europe.

Verified by a Healthcare Professional

Anastasiia Myronenko

Anastasiia Myronenko is a Medical Physicist actively practicing in one of the leading cancer centers in Kyiv, Ukraine. She received her master’s degree in Medical Physics at Karazin Kharkiv National University and completed Biological Physics internship at GSI Helmholtz Centre for Heavy Ion Research, Germany. Anastasiia Myronenko specializes in radiation therapy and is a fellow of Ukrainian Association of Medical Physicists.

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