Sales of hemp in the United States reached a record-breaking level last year due to continued legalization as well as the rising demand for CBD oil.
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Recently, Hemp Business Journal released its analysis of the hemp industry in 2017, showing that hemp product sales reached $820 million. Although there continue to be legal and regulatory problems, the industry expanded by 16 percent in 2017. And that number can be expected to rise even more. As an increasing number of states begin to appreciate the value of hemp, legalization is growing wildly.
CBD products at the forefront of U.S. hemp sales last year
Sales of hemp in the United States hit $820 million last year, with the best-selling being CBD oil for sale and personal care products (source: Hemp Business Journal).
Hemp Business Journal described the market, detailing which hemp products sold best. It turns out that CBD and personal care products took center stage. $190 million of CBD products were sold in the United States in 2017, accounting for 23 percent of the total. Personal care products were 22 percent of sales — about $181 million.
Below are some of the other purposes hemp can be used for and the amount that was sold:
- Industrial applications – $144 million
- Food – $137 million
- Consumer textiles – $105 million
- Supplements – $45 million
- Other consumer products – $16 million
As previously stated, it’s thought that sales of hemp in the United States will rise as the laws and regulations surrounding it continue to be relaxed. With Congress leaning more and more toward complete legalization of hemp at the federal level, people who are expert in the substance believe sales could almost triple over the next five years.
U.S. hemp sales might be around $2bn by 2022
While it’s just conjecture, Hemp Business Journal predicts that sales of hemp in the United States will clear the $1bn hurdle by 2020, rising to as much as $1.9bn by 2022. There are two critical factors behind this.
Firstly, growing it is easier than is the case with other crops, like corn or cotton. With hemp having more than 25,000 known applications, businesses see it has great potential. But there is still much to be accomplished before the predicted value of sales comes true. In 2017, more than half of the hemp industry was found in just the state of Colorado. The greatest barrier is that not all states have legalized hemp.
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Because hemp isn’t wholly legal, the amount of production permitted varies between states. So the boom in hemp is not as big as it might be since both farmers and vendors are still subject to regulatory barriers that cover everything from growing the crop to bringing things to market.
At present, experts think the hemp industry will expand in several southern states (Kentucky, North Carolina, and Tennessee) in addition to a massive portion of the Midwest (especially Minnesota and North Dakota). But with more favorable laws coming into effect, like the 2020 Farm Bill, hemp might grow beyond even these estimates.
Legal problems limit U.S. sales of hemp
Congress might be the key element in the success of the hemp industry, courtesy of a bill that was proposed on April 12, 2020. Senate Leader Mitch McConnell introduced the Hemp Farming Act of 2020, which was supported by Senators Ron Wyden and Jeff Merkley.
The act was later changed by senators to be an amendment to the 2020 Farm Bill. Should Congress pass this, which it is expected to do, hemp will be regulated at the federal level by the Department of Agriculture. In consequence, hemp will be more freely available to both farmers and consumers. It’s near-certain that complete legalization would lead to greater sales.
There will still be some complications under present plans for national legalization. As currently worded, the amendment prohibits anyone convicted of a drug charge that’s more than just a misdemeanor from growing hemp. No other crop faces such a restriction.
This law may place existing farmers at risk. One is Veronica Carpio, who led the way in the hemp industry from an early stage and is president of Grow Hemp Colorado. She was, however, once convicted of possession of cannabis, which is a felony.
Under the new bill, she could be ejected from the industry, despite everything she’s achieved. People who could one day become hemp entrepreneurs might be prevented from joining in due to their past criminal doings. There are some experts in the hemp industry who long for the law to be modified positively after it’s passed.
Just how much hemp might be sold in the future can only be guessed at. While hemp farming continues to expand, companies just can’t get hold of enough of the stuff to provide a complete range of commercial products. Just imagine hemp being as freely available as cotton. How many hemp products would come to market then? Find out at Cbd Oil Adviser.