Brightfield Group, which has established itself as a thought leader in the CBD space, just announced projections for the hemp CBD industry to become a $5.7 billion market by next year, with a projection of growth by nearly 40x to $22 billion by 2022.
These projections come in anticipation of the passing of the 2018 U.S. Farm Bill, which would fully and unambiguously legalize hemp and its extracts across the country.
“We believe that blowing market sizes and growth figures out of proportion would do our customers and market a great disservice,” said Brightfield’s Senior Analyst Jamie Schau, “This year’s hemp CBD forecasts might seem like a departure from that view, but I assure you they are not. These numbers reflect the substantial changes we anticipate will follow full federal legalization of hemp-derived CBD.”
Related Story: Congress May Legalize Hemp-Derived CBD Soon
There has been a long-standing industry-wide confusion on the legal status of hemp in the United States. The 2014 U.S. Farm Bill has been misinterpreted for years in leading people to believe that hemp is legal. The legalization of hemp in this context only permits the growing of hemp under a state pilot program or for the purposes of academic research. As of now, hemp, and CBD are deemed illegal, a fact supported by the Drug Enforcement Administration (DEA).
The 2018 U.S. Farm Bill is anticipated to be a “game changer” for the hemp-CBD market, as it will fully and unambiguously legalize hemp and its extracts.
Brightfield Group anticipates that hemp-derived CBD will “become the next major nutraceutical phenomenon.”
Vote Hemp said that since the passage of Section 7606 of the Farm Bill, “Legitimacy of Industrial Hemp Research,” hemp cultivation in the U.S. has grown rapidly. The number of acres of hemp grown across 19 states totaled 23,343 in 2017, more than double the number of acres from the previous year. The group also said that state licenses to cultivate hemp were issued to 1,424 farmers; and 32 universities conducted research on the crop.
The Hemp Industries Association (HIA) reported that in 2015, retail sales for hemp products reached $600 million, which is much lower than the $5.4 billion for marijuana sales in 2015 as reported by ArcView. HIA says that hemp sales on average grow by 15% each year and that most of that growth can be attributed to more people buying hemp-based body products and supplements.
Most of the hemp for these sales was imported from China and Canada. Hemp imports for 2015 were nearly $78.2 million according to U.S. trade statistics. However, there is no trade data for products like hemp-based clothing or construction materials, paper products or even carpet made from hemp. Thus, it’s difficult to determine what exactly the hemp market is in the U.S.
This report comes on the heels of a research study that Brightfield conducted in partnership with HelloMD, which showed the potential for CBD products to help users cease use of traditional medicines.
Brightfield Group’s 2018 Hemp Derived CBD Study, can be found for purchase here.
This article was originally published on Green Market Report.