Closures of non-essential retail will be far and away the largest factor impacting on CBD markets across the globe. It is estimated that up to 90% of offline sales in markets such as the UK happen through channels that would be deemed non-essential. And while some of that trade will transition to online channels, many will be unwilling or unable to do so. It is unclear how long retail shutdowns will continue in various markets, but CBD-Intel has put together an analysis looking at a number of major markets using full-year figures.
Beyond retail, legislative shutdowns will impact the sector through slowing the passage of relevant bills. However, that is a common factor that will impact many markets. Specific regulatory actions impacting CBD appear to be a mixed bag with many reporting an admirably quick adaptation to the changed situation by regulating bodies. For example, states such as Alaska have completed fully online portals for hemp production licensing. Others have reported an increased regulatory impact – with some companies saying customs are requiring further, sometimes impossible to deliver, checks and certifications to move products.
Further, less tenable impacts, are still yet to be determined. For example, it is impossible to currently say what the long-term impact on consumer purchasing habits will be, while it is difficult to say what impact will be felt from further shifting of related essential production – such as packaging – and the closure of trade shows and expos.
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