Hemp, also known as industrial hemp, has been at the center of market analysis especially since 2018. There is good reason for that, of course. A combination of factors contributed to this focus on hemp, with 2018 being a particularly stimulating year due to the US Agriculture Act 2018.
Growing concerns about environmental degradation have made consumers increasingly aware of what to buy. People are looking for products with low carbon footprint. There is growing criticism of consumers about industries and companies that show no environmental commitment.
The corporate world has felt pressure to respond to this changing consumer pattern. There has been a steady growth in the consumer body which shows a definite trend of moving towards small niche companies that demonstrate their commitment to environmental sustainability.
There’s been a scramble in the big business world lately, thus, to reinvent itself to be environmentally friendly, among other things. chopsticks He emerged as the clear winner in this scramble.
Hemp is one of the oldest plants grown and used by humans, and it is amazingly multifaceted. It appears to be Mother Nature’s solution to the sustainability problem. With the characteristic arrogance of an industrial, technology-driven lifestyle, we humans have chosen to look away from this miracle plant.
Moving forward, we have even banned the cultivation and use of cannabis products in a number of countries around the world. During the 1930s, the essential difference between non-psychoactive cannabis and its psychoactive cousin marijuana was eradicated to label cannabis as contraband.
With the turn of the millennium, rapid environmental degradation has forced us to break out of the cocoon of industrial and technical arrogance and reconsider ancient wisdom to learn from it. Hemp returned in the process.
This is not at all surprising, as the sustainability value of cannabis is almost immeasurable. Hemp has health benefits that can replace pharmaceuticals derived from synthetic chemicals. It grows quickly and in abundance and does not need pesticides or herbicides.
Except in drought or desert drought conditions, hemp does not require additional irrigation. It is an excellent soil preservation crop as it regenerates the soil. Hemp needs half as much water as cotton. The yield is 200-250% more per hectare.
Hemp fibers can be used to produce a wide variety of environmentally friendly items. Of the linen-like textiles that are more beneficial to the environment and human skin, the bark fibers of this plant can completely replace synthetic clothing.
Hemp is a potential source of biodegradable plastics and biofuels that could replace rapidly depleting fossil fuels. Its fibers make an excellent insulating material that can reduce our dependence on electricity-based heating and cooling. Hempcrete is a building material that has the potential to revolutionize the construction industry.
The world market has finally absorbed the wonders of this nature.
Reputable market research organizations differ in their expectations of how the cannabis market will grow. However, they all agreed that it would be a growing market. The projected compound annual growth rate ranges from 5.6% during 2019-2025 to 34% during the same period.
However, most market research reports forecast a compound annual growth rate of between 13.7% and 16.7% during the period 2019-2025. The estimated value of the cannabis market in 2019 was $4.6 billion. The expected market value by 2026 ranges from $13.03 billion to $14.67 billion.
The driving factors for growth
Leading research agencies agree that the growth of the cannabis market is primarily consumer-driven. Vendors are building new production capabilities and expanding existing capabilities to respond to the increasing demand from end users.
The political climate of decriminalizing cannabis cultivation and legalizing the production and use of plant-derived elements is a driving factor behind the projected market growth.
The Asia Pacific region (APAC) led by China dominated the global cannabis supply in 2018. Most of the leading market research agencies expect this leadership to continue through 2019-2025. North America dominated by Canada was the second largest supplier of hemp and hemp-based products in 2018, followed by Europe.
South America came fourth, and the Middle East and Africa region came last.
All reports agree on the use of hemp seeds and nutrients hemp seeds Or hemp seed derivatives dominated the market in 2018-2019. The seed market accounted for 50.9% of the total hemp market in 2018. The fiber market came second with a market share of around 40%.
The highest demand for hemp fibers from the textile industry, the estimated market value of hemp fabric The industry was worth $1.03 billion in 2018. However, the demand for hemp, the woody inner core of hemp stalks, is expected to grow in the coming years.
The demand for lightweight auto parts and energy-saving insulation options will drive the growth of the hemp weed market during the forecast period. Big car companies like Audi, BMW, Daimler/Chrysler, and Volkswagen already use hemp bioplastics in their cars.
Personal care items that use hemp seed oil and/or CBD oil make up the third largest segment of the cannabis market and are likely to remain there.
The United States of America imported hemp seeds and fiber worth $67.3 million in 2017. Canada was the largest supplier to the United States, providing about 90% of hemp imports. China received about 3-5% and Romania about 2-4%. Other European countries, the Dominican Republic and India provided the rest.
With the Farm Bill 2018 making hemp cultivation legal in the country, hemp cultivation increased four times in 2019. US farmers obtained licenses to grow hemp on 51,442 acres, which is a 455% increase over 2018.
The United States is already the third largest producer of cannabis in the world as a result of this increase. China is the main producer of hemp with Canada in second place.
Hemp production in the United States is likely to fuel the country’s domestic demand for seeds and fiber. That would be a huge drop in exports for Canadian cannabis growers. China and other countries that have been exporting cannabis plant materials to the United States will also feel the brunt.
It remains to be seen how this affects the prices of cannabis items on the global market.