2020 Hemp industry projections are, indeed, the talk of the town right now. After all, the hemp industry was already steadily growing when it hit a massive boom thanks to the 2018 Farm Bill — and it doesn’t look like this upward swing is going to slow down anytime soon. With the industrial hemp revolution growing (as well as hemp-based health and wellness products like CBD), the world is finally getting a hankering again for the eternal awesomeness of hemp and its many uses.
But how much hemp industry growth can we really expect in the coming years? Is it going to continue to scale this way worldwide, or is this just another trend in a long line of fads?
Projected 2020 Hemp Industry Market Growth
At a current industry net worth of $5 billion in the United States, projections show that the hemp industry is expected to reach a net worth of $23.7 billion by the year 2023, according to the Brightfield Group. And while the U.S. leads the world in hemp production, China, Columbia, Canada, and South Korea aren’t far behind. Other countries around the globe are taking a cue from the U.S. by working to establish their own hemp markets.
Hemp was once was a standard commodity throughout much of the world. Once again, it has the opportunity to meet its full potential.
Many things have contributed to this comeback, not the least of which is cannabidiol, or CBD. CBD is a natural compound that may provide a plethora of health benefits without any psychoactive effects. As such, CBD boasts an entirely new dynamic in the natural health and wellness world.
The changing legal landscape is a huge factor, as well. The removal of industrial hemp from the Controlled Substances Act opened the industry up to many more federally legal options for producing and marketing hemp and hemp-based products.
Issues Slowing Industrial Hemp Expansion
There are, however, some factors that could slow down the progress of these hemp industry projections in the coming years.
One of these factors is the strict set of cultivation rules currently set up in the U.S. The USDA laid out specific cultivation guidelines outlining growing conditions, harvesting times, acceptable cannabinoid levels, and testing methods. However, these rules are very restrictive and many fear they will cause detriment to the industry as a whole.
Growing and harvesting a hemp crop also involves some pretty intensive labor. Hemp farming requires a lot of manual labor during the harvesting stage. Because the industrial hemp industry is still in its infancy in the United States, there aren’t very many options for hemp harvesting machinery. Some farmers have resorted to retrofitting their machinery to harvest the floral material in hemp (which contains the highest CBD content in the plant).
Another of these negative factors for the hemp industry is that there isn’t a universal standard for hemp harvest distribution practices. Due to a lack of uniformity in this arena, many farmers become financially burdened when buyers only offer the bottom dollar. Many farmers go into the season expecting a considerable profit. Unfortunately, many may receive less than half of what they sold their previous year’s harvest.
Final Thoughts On Market Growth
With the new laws legalizing the CBD-rich form of cannabis, many farmers are trying to get in at the ground level in an exciting and booming new industry. But because the industry is still young, many farmers may not be accustomed to hemp cultivation best practices. This lack of information is another learning curve that the industry is going to have to undergo as more cultivators come on the scene. Fortunately, hemp consulting services can help new farmers learn the ins and outs of the hemp cultivation process.
Nevertheless, there is a bright and shining future waiting for the industrial hemp industry. The current hemp industry projections prove that.
What are your thoughts on these hemp industry projections? Do you think that it’s going to explode with growth, or do you think these figures are a little cavalier? We would love to hear your thoughts in the comments below!