Sean Murphy, Founder, Hemp Business Journal, offered his opinions on where hemp is heading in the coming year.
Hemp Business Journal estimates the hemp industry will grow to $1.8 billion in sales by 2020, led by hemp food, body care and CBD-based products. The data demonstrates that the hemp industry is growing quickly at 22% 5-year CAGR and being led by food and body care products.
This is a big year for hemp-derived CBD, especially in Canada. The country is on its way to legalizing CBD nationwide in 2018. Some expect sales of this product that don’t get you high will reach $3 billion in the next five years. Canada has proposed changes to hemp regulations allowing for the extraction of CBD, limiting to 10 ppm the amount of psychoactive THC they can contain.
In the U.S., about 25 Lucky’s Markets across the country are selling products that contain CBD. The Drug Enforcement Agency (DEA) did, however, recently state that cannabinol (CBN) and cannabidiol (CBD) are found in the cannabis plant that fall within the CSA definition of marijuana. The DEA and hemp industry are set for a showdown in February where oral arguments will be heard in the 9th Circuit Court of Appeals on whether the DEA’s new drug code (7350) is legal.
PlusCBDOil sold $5.6 million in the third quarter. It’s in 1,500 stores across the country and is the 5th largest product in the natural products industry. Epidiolex, a CBD-based drug by Greenwich Biosciences, recently filed its NDA and commercialization is expected by the end of 2018. The natural products industry and pharmaceutical are set to clash later this year or in 2019.
About 34 states have legislation that separates hemp from marijuana and 26 are active with pilot programs for industrial hemp. In Kentucky, farmers want to get out of tobacco because they can’t stand behind that mechanism. They know how to grow at scale.
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