Is Marijuana ‘Recession-Proof?’ Industry Experts Say Yes – To A Point – and Alcohol Might Be A Guide

The legal cannabis industry appears poised to enter uncharted waters: an economy engulfed by a full-fledged recession.

The coronavirus is inflicting severe damage to the world economy, raising the specter of a major economic contraction, and some economy watchers – including Bank of America – have already asserted the U.S. is in a recession.

How would legal cannabis companies hold up in a severe downturn? Fairly well, said several industry experts.

And alcohol sales might be a good barometer.

Industry experts note that most cannabis consumers are wedded just as closely to marijuana as they are to other essentials, ranging from pharmaceutical medicines to toilet paper and – perhaps a closer industry parallel – alcohol.

The accompanying chart shows that alcohol sales at the wholesale level held up relatively well during the Great Recession that stretched from December 2007 to June 2009.

And, over the longer term, sales increased.

To read more, click here by Bart Schaneman.

Source: Marijuana Business Daily