Global hemp market trends on the example of the USA

In the long term, the hemp market in Ukraine will most likely be similar to those of other economically developed countries - a significant part of the hemp planting area will be intended for grain and its fibrous part, and only a small segment of the market will be able to specialize in growing raw materials for the use of therapeutically active hemp ingredients.

Officially released statistics show that the US hemp industry has reduced the cultivated hemp planting area for the third year in a row. The oversupply of hemp raw materials rich in therapeutically active hemp ingredients, aggravated by the COVID-19 pandemic and the accompanying macroeconomic consequences, forced, on the one hand, a significant number of agricultural producers in the country to abandon the cultivation of significant hemp crops with significant therapeutic properties, on the other hand, to increase crops intended for the production of hemp fiber.

The USDA's Agricultural Services Agency this month released 2022 cultivated area data showing that total cannabis planted area has dropped significantly compared to 2021. 

 Cannabis cultivation in the US in 2021-2022

Not surprisingly, the reduction in the production of therapeutically active cannabis was the main reason for the overall reduction in the acreage devoted to the most highly profitable crop in 2022.

Comparative table of crops intended for fiber production in the USA

At the same time, industrial fiber crops were the only modern U.S. hemp industry to see growth in 2022. Moreover, it should be noted that in addition to an increase in the number of agricultural producers specializing in the cultivation of industrial crops of industrial hemp in order to obtain fiber, the total area of sowing intended for obtaining hemp fiber by 73%, the maximum and average values of the area under crops of the most highly profitable agricultural crop have also increased.

Commentary of the specialists of the “Ukrainian Industrial Hemp Association”

In the USA, as well as in other economically developed countries of the world, after the primary boom in cannabinoid products and, accordingly, the crisis of overproduction, the industry is returning to normal - a significant share of cultivation is occupied by production areas for grain and fibrous parts of the hemp plant, and small areas of crops are intended for hemp production. raw materials rich in therapeutically active hemp ingredients. This suggests that in the long term, the hemp market in Ukraine is likely to be similar to those of other economically developed countries - a significant part of the acreage of the hemp plant will be intended for the production of grain and its fibrous part, and only a small segment of the market will be able to specialize in the cultivation of raw materials for use therapeutically active hemp ingredients.

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