The international industrial hemp market size was estimated worth USD 4.71 billion in 2019. The cannabis market is driven by the best hemp startups and the growing demand for hemp oil and fibres in the medical, automotive, food and beverage, construction, personal care, and textile industries. Now that industrial hemp is legal at the federal level because of 2018 Farm Bill, the USDA is starting to approve state and tribal hemp production strategies and plans. With this, crops and retail sales are expected to grow quickly in the coming years. Did you know that the number of acres of hemp grown in the United States in 2019 was 100 times greater than five years ago, and that was even before the USDA approved hemp plans?
Supply Chain Development
The hemp market has been growing widely in the United States. For startups, it will take time and money, but it’s also a big opportunity as the market is growing bigger in the upcoming years. If you are planning to invest in the hemp business, now is the time to enter the industry.
Market Leadership
It is well understood that the first business in the market has a unique opportunity to own that market, and once a brand retains a market, it can be very difficult for other newcomers to compete on equal ground. While some restrictions and challenges related to commercial activity in the hemp industry is still common despite the passing of the 2018 Farm Bill, all statistics point to increased commercial activity in the hemp industry. Therefore, it’s the right time for investors to think about being first to market and owning a space in the hemp industry.
Innovation and Expansion
Research data says that more than 50,000 products can be made from hemp. In the United States, food products and CBD oil brands are two of the fastest-growing categories within the hemp industry. Demand for hemp products is also mounting quickly in other countries, increasing the career opportunities for people interested in hemp. Already, a variety of innovative hemp products have debuted in the market, which will help move the industry forward.
Demand and Penetration
With the increase in sales, the demand for hemp is growing rapidly. However, the penetration of hemp products into the US market is still quite low. Despite the passing of 2018 Farm Bill, there is still confusion and misperception about hemp among many people. This means there is still room for smart businesses to learn about consumer needs and carve out leading positions in the marketplace. Those who know how to make the best out of given opportunities, it will be a great chance to understand the gap between the growing demand and limited penetration and take the lead in the market.
Summing up
When the 2018 Farm Bill was passed, the doors to the hemp industry opened, making way for the best hemp store in Minnesota and other parts of the US. While there are still rules and restrictions at the federal and state levels, the good news is there’s still a huge chance for smart entrepreneurs and investors to succeed in the hemp industry.