Report Says Hemp Industry to Reach $13 Billion by 2026
[dropcap class=”kp-dropcap”]A[/dropcap] recent surge in interest of hemp-derived CBD is leading the hemp industry on a path to rapid growth over the next seven years, with a recent report claiming that industrial hemp will likely reach a value of $13.03 billion.
The company that conducted the study is Reports and Data, a market and research consulting company. According to the report, this increase in popularity and sales will drive interest in new products such as “high-quality cosmetics, protein supplements and health food products, among others.” A press release summarizing many points of this study described other reasons behind the surge in popularity. “Increase in demand for the above-mentioned products is likely to drive the market growth in the forecast period,” it read. “There is also a huge market due to the growing health awareness among consumers, which in turn, would fuel the market demand for natural industrial hemp products. According to updated Farm Bill 2018, on must seek permission from the Drug Enforcement Administration (DEA) to cultivate industrial hemp in the U.S.”
Other interesting findings include the topic of hemp seeds, which took up 45 percent of market share in 2018. Simply put, the higher the demand for new hemp-based products, the more dominance it has over hemp related sales. Textiles on the other hand dominate an estimated 20 percent, and is expected to grow by 13.2 percent between now and 2026. Finally, the Asia Pacific market is predicted to have a compound annual growth rate of 14.2 percent because of an increase in “the consumption of fibers and seeds in several applications.”
The report in its entirety covers a variety of topics, including various outlooks of note. In total, the report looks into the current and future industries involving hemp and seeds, stalks, fibers, conventional and organic cultivation, automotive, food/drinks, cosmetics, animal food and many more.
Hemp has long been considered to be a suitable alternative for many other industries (hemp textiles vs. cotton, hemp concrete vs. standard concrete, etc.). Even recently, many states are beginning to open up to the idea of hemp as a cash crop.
