The cannabis industry has been hit hard by COVID-19, as has every other industry, and will continue to feel its impact in the years to come.

Although a brief surge in sales at the beginning of the pandemic had some hopeful, those figures have since dropped and business activity is lagging behind pre-pandemic expectations. But slow sales growth isn’t the only impact. There are four major changes coming to the cannabis industry soon as a result of the pandemic.

1. Cannabis legislation delayed

Each state with cannabis regulations have developed a unique system that matches their state’s unique system of government and needs, which means legalization efforts are always at different stages of development across state lines. Voter-based initiatives and state legislation are at risk of not making the ballot since signature gathering and rallying aren’t permitted in a socially distant atmosphere. Legislative focus has also shifted to COVID-19 response, and there are cannabis-related bills at the state and federal levels that have been pushed aside while the pandemic response continues.

2. New cannabis insurance products

The insurance market for the cannabis industry continues to develop as the industry grows, which means carriers are learning more and able to offer better products as time moves forward. But the rollout of new cannabis insurance products will have to wait, as many carriers are choosing to see what happens first.

3. Cannabis designated as “essential service”

As shelter-in-place orders were issued in several states across the country, cannabis businesses were deemed by many regulators as “essential services” that provide people medicine. This declaration is good news for patients but also highlights the hypocrisy in an essential service that is prohibited at the federal level.

How patients access cannabis varies by state for a wide range of conditions. Some states with medical cannabis laws require patients to register with the state in order to buy cannabis, but other states with adult-use regulations see many medical patients purchasing their products from adult-use dispensaries and deliveries.

Being deemed an essential service is good news for cannabis operators who can continue to do their part in the supply chain, whether it’s tending the crops, processing the flower, producing value-added products, distributing, delivering, or dispensing. While social distancing measures and sanitation protocols need to be implemented, it’s possible for companies in the following states to continue operations as cannabis is deemed essential: California, Colorado, Connecticut, Illinois, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Pennsylvania and Washington.

4. Financial squeeze

It’s possible that many cannabis companies won’t survive the pandemic. The increased difficulty of operation, the lack of COVID-19 relief funding for cannabis businesses, and the number of new businesses in the industry are all factors that could spell disaster for a company, especially a small mom-and-pop shop. Larger operations with investors and/or capital are more likely to survive, especially if relief funding continues to leave out the cannabis industry.

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What kind of changes do you see stemming from the pandemic for the cannabis industry? Leave your thoughts in the comments below.