With hemp and cannabidiol (CBD) becoming more normalized every day, the wellness branch of the industry is taking the market by storm and paving the way for a brighter tomorrow. The growing demand for these products holds so much hope for federal cannabis reform and innovation. We caught up with Pachamama CBD about the future of hemp production and the positive changes in the industry that are going to keep on coming.
How has the hemp industry changed in the past few years, due to COVID and new restrictions?
The hemp industry is no stranger to regulatory uncertainties and instability. CBD is helping to decrease the stigma behind cannabis and hemp. This is great news; however, it comes with its own setbacks. Companies are flooding the market to claim a stake in the lucrative industry without the worry of quality and maintaining the structural integrity of the CBD molecule. The lack of FDA regulation of this industry makes third-party testing vital to inform consumers of the quality behind products. Even though this happened prior to COVID-19, the pandemic has caused its own slew of economic and logistical setbacks within the industry.
What are some of the major changes you’ve seen?
One major change we have seen in the industry outside of its rapid growth is the reduction in the price of industrial hemp. According to Hemp Benchmarks, the overall price of hemp CBD biomass plunged about 80 percent from April last year to April 2020—it dropped to $8.1 per pound from $38.0 per pound. The reduction in price has created a unique opportunity for brands in the industry to reposition themselves. What is important for consumers to realize is that as brands shift their pricing models, they may also be shifting their quality measurements in order to further reduce their production costs. It is more important than ever for consumers to pay attention to third-party testing.
How would federal cannabis legalization impact hemp?
Federal legalization, as a whole, will not only increase consumer understanding and awareness of cannabis products but also increase the overall demand. While it may be hard to understand the specific increase in demand for marijuana products versus hemp products, we know that there will be an increase in both. With this increase in demand, we will continue to see an increase in supply, both from major corporations and small businesses who want to participate in a rapidly growing industry.
Unfortunately, the increased supply, particularly in the short term, will likely bring forth more options for consumers. It will be important for consumers to continue to pay close attention to the quality of products being offered, particularly around newly established brands. Although it takes time, we can see that as industries mature, the companies that hold longevity in the market are the ones that can back up their products with third-party testing and transparency. Consumers want to pay particular attention to a brand’s position around quality and transparency. Pachamama has always put quality and transparency first. Our Purity Award from the Clean Label Project is just one example that reinforces our commitment to being leaders in the industry for years to come.
What changes do you anticipate seeing in the next few years?
We anticipate an exciting next few years in the cannabis industry as a whole, but particularly surrounding the innovation in the industrial hemp industry. As an industry, we continue to uncover more potential benefits that are bringing rise to new product development. For example, CBN is starting to really make strides in assisting consumers seeking an alternative to addictive or prescription sleep aids.
In particular, Pachamama just launched our Sleep Well Gummies that include 4mg of CBN per serving. The feedback we are receiving from our consumers thus far has been overwhelmingly positive. Pachamama will continue to focus on making small improvements to our core products while also presenting our consumers with innovative products that can help support a healthy, active lifestyle on a daily basis.
Is there anything specific about your company that you want to plug or promote right now?
We are incredibly excited to announce that we have dropped our MSRP on April 22, 2020. We are incredibly proud of our team’s hard work in combination with a maturing market to drive down costs without sacrificing quality or consistency. We are elated to be able to offer our award-winning products to be accessible to a wider audience. From the beginning, we have been committed to providing natural alternatives that change lives. Now, we are able to offer this to far more people, which has been our goal from the beginning.
Is there anything else you’d like to add?
Over the past year, Pachamama has donated over $30,000 worth of products to those in need. We have also introduced discounted pricing for first-responders, veterans, and those with extenuating health conditions. It is of the utmost importance to us, as an industry leader, to be at the forefront of the race to make award-winning wellness products accessible to all.
