Cannabis sales were soaring in March, especially during the first half of the month as the coronavirus became a global pandemic. Washington state saw a 9% increase in March's revenue from cannabis compared to the prior year, California's sales were up 53% year over year (although in previous months, its growth rate was around 75%), and Oregon posted record monthly revenue of $84.5 million, up from $61.2 million a year ago.
Pot sales were soaring, but they were also slightly inconsistent. California-based cannabis cultivator Goldenseed recently surveyed marijuana users across the country and found three key reasons demand was up in March. Let's take a look at the factors driving increased cannabis sales to see if this is a trend that may continue and what it tells us about investing in cannabis stocks today.
The main concern among those surveyed is the fear of a cannabis shortage as a result of the coronavirus pandemic. A total of 35% of respondents said this was the most pressing issue for them. Point-of-sale data from Headset, which tracks recreational cannabis sales for multiple states, corroborates these findings. Mid-March is when consumers were stockpiling their supply of cannabis -- just days after the World Health Organization declared the coronavirus a pandemic. Cannabis sales surged in California, Washington, and Colorado before falling in the following weeks.