…and Why it’s going to Change Industries!
The hemp industry is booming!
That’s true; actually in 2019 the global hemp industry is estimated at around 4.6 Billion USD, and it is forecasted to reach 26.6 Billion USD in 2025 achieving a CAGR% of 34% annual growth.
Asia Pacific accounted for the largest market share in 2018. This dominance is attributed to the extensive production and consumption of hemp fiber in the textile and paper industry. Not only due to the booming market for cosmetics and personal care products in the Asia Pacific region, but also the legalization of industrial hemp in food supplements are estimated to drive the market growth.
Legalization of hemp
Hemp plant has always been used by humans in purposes other than the recreational ones; this fact has led to the legalization of hemp.
In 2018, The US Farm bill passed with a language that legalizes Hemp production, which would mean a huge push for the American farmers along with the American Hemp industry.
The legalization of Hemp has facilitated the banking services’ access to farmers, which could mean a better access to low interest loans and capital investments; such facilities could mean a great opportunity to a lot of operations to scale up and increase their production.
Hemp is currently used in over 25,000 products globally; industrial hemp-based products are included automotive industry, furniture industries, textiles, food, beverages, beauty products and construction supplies.
Hemp runs parallel with the “Green Future” objectives that are becoming increasingly popular. Hemp requires little to no pesticides, no herbicides, controls erosion of the topsoil, and produces oxygen.
Hemp agriculture has shown some superior qualities over the other crops that could be farmed instead. It could survive on less water supply and has shown to be more frost resistant than other crops; those qualities could mean a good opportunity for farmers on tight margins to improve their bottom lines.
An average quality hemp crop could yield better than an excellent quality tobacco crop, this superiority over traditional crops has led to the expansion of lands over which hemp is farmed.
In the US, 23343 acres of hemp were cultivated in 2017 which has grown to the sum of 77000 acres of hemp in 2018 and this growth would continue in 2019 following the 2018 farm bill and supported by the decrease in imports of Hemp to the US from countries like China and Canada.
Hemp products are involved in many industries.
The biggest use of hemp (23 percent of hemp-related business in 2017) is the CBD oil (cannabidiol) extracted from it. CBD oil and products derived from it are used essentially as dietary supplements. While they contain no THC and do not cause a high, they are useful in helping the regulatory system (appetite, sleep, etc.) They also have antioxidant and anti-inflammatory properties.
The Hemp CBD industry is scoring some record growth rates posing a chance for huge urban development. This growth has been attributed to the good reputation of the CBD as a wellness product, driving it to be included in a growing number of products.
Hemp fiber is used majorly in the textile and pulp & paper industry, due to its long and strong fibers as compared to cotton. Furthermore, being a renewable source material, its application has been increasing in many diverse industries such as construction, animal bedding, agriculture, furniture, and automobile. Additionally, its usage to obtain biofuels and bio plastics has been expected to increase its demand in the coming years. Such application to those industries would represent a very strong competitor to the commonly used petrochemical products.
Hemp can be used to replace many potentially harmful products, such as tree paper (the processing of which uses chlorine bleach which results in the waste product polychlorinated dibensodioxins, popularly known as dioxins, which are carcinogenic, and contribute to deforestation), cosmetics, and plastics, most of which are petroleum-based and do not decompose easily. The strongest chemical needed to whiten the already light hemp paper is non-toxic hydrogen peroxide.
Organic hemp is used majorly in food, beverages, and pharmaceuticals products. These certified hemp products are cultivated under the strict regulations and guidelines provided by organic certification bodies.
Hemp seeds are very nutritious. One seed contains 25% more protein, and more omega-3 oils than walnuts. Not only could the oil be a dietary supplement, but you can also add hemp leaves to your salads.
Biofuels, as a concept, have been around since 1895 when Rudolf Diesel used peanut oil to power a diesel engine. Henry Ford even backed the use of ethanol. Hemp oil is among the contenders for biofuel use.
The multiple uses of hemp, its ease of agriculture and its legalization have made it one of the most promising industries!