The CBD and medicinal cannabis industries have recently experienced an overall increase in sales caused by panic buying due to the coronavirus pandemic.

Current changes in regulations may cause future uncertainty thanks to changes in supply and demand.

Following announcements to self-isolate around the globe, consumers are buying in bulk to ensure compliance with the new rules. Consequently, there has been an immediate increase in demand for the hemp plant.

There has also been an increase in demand for younger plants and hemp seeds from young plant producers, for which farmers had been holding out on these purchases due to future market uncertainty.

Josh Schneider, CEO of young plant supplier, Cultivaris Hemp stated, “We have had more farmers calling and looking to nail down a plan and ensure that they have plants.”

It’s unsure what long term effects this immediate increase in demand will have on the supply chain as the demand inevitably decreases post-coronavirus. However, the uncertainty isn’t good for an industry that already operates under such tight margins.

Businesses inevitably need to prepare for the demand to drop because the previous overproduction of hemp has caused supply prices to fall which in turn means less profit for producers and industry uncertainty.