The coronavirus outbreak is likely to disrupt the legal cannabis industry supply chain, Mugglehead reports. Specifically, the number of cannabis vaporizer cartridge shipments from China plummeted since the country’s quarantine efforts began.
California-based ProVape said their vape coils, batteries, and other hardware shipments from China have dwindled to a “frightening number.”
“We are constantly told that products are on back order, and are encouraged to stock up with vape hardware to avoid any issues in coming months.” — ProVape executive Art Harutyunyan, via Mugglehead
The company said that about 90 percent of vaporizer hardware worldwide is manufactured by just 1,000 Chinese factories. Supply chains are already suffering but, with quarantine efforts only ramping up, the outbreak is beginning to pose a massive problem for U.S. cannabis markets.
“It’s a huge wake-up call,” Nic Easley, CEO of 3C Consulting, told Marijuana Business Daily. “It’s forcing companies to look at their supply chain. ‘Where do my products come from? Do I have multiple options for vendors? Everyone was looking for the cheapest option forever, and that’s China.”
The coronavirus is believed to have originated in Wuhan, China. It has proven particularly contagious and has a much higher fatality rate than the common flu; quarantine efforts have made international headlines but coronavirus cases have regardless been reported throughout Asia, Europe, and North America. Meanwhile, global stock markets have plummeted as travel restrictions and pandemic paranoia take effect.
As of the time of this publishing, there were nearly 90,000 reported coronavirus cases worldwide with more than 80,000 confirmed in Mainland China.
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