The entire cannabis industry has been spreading like wildfire lately, but a particular niche seems primed to becoming the next big thing: hemp.
Following the passage of the U.S. Farm Bill, hemp and all hemp-based products are now legal (not including CBD edibles, currently under attack, as we just saw in New York), which makes for a thriving industry. There are 2 primary differences between hemp and cannabis. Number one, hemp won’t get you high but it has many of the same benefits as cannabis since it often has other cannabinoids and especially high levels of CBD. Number two, hemp has a history of industrial uses such as producing paper, plastic, food, clothing, insulation, and numerous other products.
So what can we expect in terms of growth when it comes to the hemp? Well, we’re looking at an industry expected to double in market size within two years. According to a recent report from New Frontier Data titled The Global State of Hemp, worldwide hemp sales equaled $3.7 billion in 2018 and are estimated to be almost double at $5.7 billion by 2020.
As of now, China is leading the profits game with nearly $1.2 billion in hemp sales. The United States came in second with an even $1 billion, followed by all of Europe at $980 million, and Central and South America rounded out the end of the list with a combined total of $220 million.
As the market grows, it’s expected that the United State may move in to the top slot, depending on how any upcoming regulatory changes are handled. New Frontier Data predicts that U.S. hemp sales will increase to $2.6 billion by 2020. About half of this revenue will come from the sale of hemp-derived CBD products.
If you’ve been looking to invest in the industry, now would be the perfect time, as long as you have done your homework… Check back for more updates on this developing market and make sure to subscribe to our Weekly Newsletter for all the latest news and information about the cannabis and hemp industries.
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