The selling of hemp in the United States hit new records last year because of the continuous support and legalization as well as the growth in popularity for Cannabidiol oil and its newer products in the form of CBD gummies for pain.
Hemp Business Journal in a recent release for their 2017 hemp industry analysis reported that the sales of products related to hemp were recorded at $820 million. Regardless of the legal battles that have been ongoing as well as regulation issues, the industry had seen a tremendous growth of up to 16% last year.
This number will not just be the end of it with expectations that it will actually grow. As more people and states figure the value that hemp holds, legalization has become the in thing with more states embracing this.
CBD PRODUCTS LEADING THE WAY IN US HEMP SALES IN 2017
The sales of hemp products culminated to a record $820 million in just 2017, the products that generated most of these sales include CBD as well as personal care products.
Hemp Business Journal broke down the market by giving an analysis of exactly which hemp products performed best. Their analysis concluded that the best CBD oil for depression and pain, as well as personal care products, were the biggest market sales in the industry.
With 23% of the of the total sales counting for CBD products and the same resulting to $190 million worth of sales in the same year. Personal care products followed closely at 22% and this led to $181 million in total worth of sales.
Find below the diverse uses of hemp as well as the total sales that each generated.
• Industrial applications – this raked in a total of $144 million
• Food – this accounted for $137 million in total
• Consumer textiles – this saw sales of $105 million generated.
• Supplements – this accounted for $45 million
• Other products – this was the lowest gainer at $16 million
We earlier indicated that the volume of CBD oil for pain for sale in the United States may rise in due time as law as well as regulations surrounding hemp become better and eases.
The Congress has been in support of complete legalization by the federal government of industrial hemp, experts in this industry have forecasted that the sales will keep increasing and even triple in a period of five years.
US HEMP SALES COULD APPROACH $2 BILLION BY 2022
It may only be an estimation but the experts at the Hemp Business Journal are expecting that the sales of hemp products in the U.S will rise and get to $1 billion before the end of 2020 and even increase up to $1.9 billion before the end 2022.
This fact is attributed to two very key factors: Hemp has been found to be very easy to cultivate in comparison to different crops that include cotton or even corn and there has only been a slight difference in preference between CBD capsules vs oil as both are easy to use and acquire relatively. The plant has more than 25,000 uses that are known to humans, with that said, businesses already see the big potential that hemp has and how resourceful this can turn out for them.
That said, there is still a long journey ahead before this estimations can be actualized. More than half of the whole hemp industry in 2017 was actually located in Colorado. The biggest hurdle for hem is that there are still states that have not embraced legalization of the plant as well as its products.
And because hemp is not fully legal, the quantity a given state can actually produce may not be the same for a different state. In this case, it may not be easy to project a big boom for hemp because farmers, as well as vendors dealing with the plant, are still faced by regulatory issues which touch on its growth as well as production and even marketing.
Currently expecting that the industry will grow in leaps and bounds in mostly the states located on the southern side which include Kentucky, North Carolina, and even Tennessee, this may also cut across a big area in the Midwest and most especially Minnesota as well as North Dakota.
The good news is that a lot of laws are being enacted in favor of hemp and this includes the 2020 Farm Bill, this indicates just how things are looking up for the hemp industry as well as the potential this has to even go beyond estimations given above.
LEGAL COMPLICATIONS LIMIT POTENTIAL US HEMP SALES
The Congress may just be the key to the successes that the industry can achieve mainly because of a bill that was proposed on April 12th in 2020. This bill which is the Hemp Farming Act of 2020 was put across by the leader of the Senate Mitch McConnell who also got the support of both Senator Ron Wyden and Senator Jeff Merkley.
The senators much later made this act a part of the amendment of the 2020 Farm Bill. In case Congress is able to pass this bill which is also the expectation, the Department of Agriculture would have to work on regulating hemp on a federal stand. This move will be very advantageous for both the farmers as well as the end consumers as they will have greater access to the plant. The most inevitable thing would be complete legalization would lead to sales increases.
It is expected that there would still be issues with regards to the plans to have nationwide legalization. The amendment makes it clear that any person who was charged with a drug felony before is prohibited from growing the plant. In the United States, no other crop grown is regulated in such a manner.
Such a law may jeopardize the chances for farmers who have been involved in the growing of hemp which is inclusive of Veronica Carpio. Carpio remains to be one of those people who has played a key role in contributing to the industry and she is also the president of Grow Hemp Colorado, though she has a previous felony record for cannabis. This law is likely to kick her out of an industry she has given a lot for. A future entrepreneur who would like to be involved in the business may also potentially be blocked from engaging in the business if they hold a criminal record. It is the hope of some experts in the hemp industry that there will be reforms as far as the law is concerned after the same has been passed.
Our wild guess is that hemp sales are more likely to keep growing. In as much as the cultivation of hemp has seen a tremendous growth, companies are still short of resources to provide a complete spectrum of commercial products. What could be the possibilities if the plant would have been