Cannabis Deemed Essential: How COVID-19 Changed the Industry Forever

An Essential Industry

When COVID-19 lockdowns swept across the United States in March 2020, an unexpected thing happened: cannabis dispensaries were designated as essential businesses in virtually every legal state. This designation changed everything.

The Essential Designation

State after state classified cannabis as essential:

• California — Dispensaries remained open throughout lockdowns
• Colorado — Cannabis included alongside groceries and pharmacies
• Illinois — Essential despite just launching recreational sales
• Massachusetts — Medical dispensaries essential, recreational temporarily closed
• Michigan — Dispensaries operated throughout stay-at-home orders

What It Meant

Legitimacy — Being classified alongside pharmacies and grocery stores represented an enormous step toward mainstream acceptance.

Revenue Stability — While many industries collapsed, cannabis sales actually increased during lockdowns.

Policy Precedent — The essential designation will be cited in future legalization debates.

Sales During COVID

Cannabis sales didn't just survive — they thrived:

• March-April 2020 sales spiked 30-50% across legal states
• Annual U.S. cannabis sales reached a record $17.5 billion in 2020
• New consumers tried cannabis for the first time during lockdowns
• Pantry stocking behavior drove large initial purchases

The Delivery Boom

COVID accelerated cannabis delivery adoption:

• States that hadn't allowed delivery fast-tracked delivery regulations
• Existing delivery services saw volume increases of 200-300%
• Curbside pickup became standard at dispensaries
• Contactless transactions became the norm

Technology's Critical Role

The pandemic highlighted the essential nature of cannabis technology:

• Online ordering — Dispensaries without digital ordering lost significant business
• Delivery platforms — Technology-enabled delivery services thrived
• Inventory management — Supply chain disruptions required sophisticated tools
• Contactless payments — Further reducing cash dependency

Budbo During COVID

Our platform saw tremendous growth as consumers shifted to digital:

• Online menu views tripled
• Pre-order usage increased 400%
• New user registrations surged as first-time consumers sought guidance

COVID proved what we always knew: cannabis technology isn't optional — it's essential.