Consumer Demand for Hemp Products Will Drive Opportunities in Many Sectors of the US Economy

The sector of modern hemp growing, exploiting the therapeutic possibilities of the plant for an extremely short time, will significantly decrease and, in terms of market volume, grain and the fibrous part of the plant will come to the fore, the acreage under which will occupy the lion's share of cultivated crops of industrial hemp.

During 2019-2020 The editors of the specialized electronic edition of national hemp growers focused the attention of our respected readers and listeners on the fact that the hemp market in the United States shows signs of overproduction, which indicate the inevitable collapse of the inflated "bubble" in the drug-free market . cannabinoids . From 2021, it is emphasized that the modern cannabis sector, exploiting the therapeutic possibilities of the plant for an extremely short time, will significantly decrease and , in terms of market volume, grain and fibrous parts of the plant will come to the fore, the acreage under which will occupy the lion's share of cultivated industrial hemp crops in the United States .

The published report of the company “ Let's talk Hemp confirms the above trends in the modern cannabis market of the world's most economically developed country, and also indicates that despite the obstacles caused by regulatory uncertainty and bottlenecks in the supply chain, the overall size of the US hemp market in 2022 will continue to grow. In the materials prepared by analysts of the American hemp market, it is stated that consumer demand for hemp raw materials is increasing in many sectors of the modern US industry - from the use of drug-free cannabinoids , food and cosmetics, to industrial applications such as paper, textiles, biocomposite and building materials, animal feed, and biofuels .

Partial reprioritization in the US hemp industry

Despite the fact that the area under cultivation is shrinking, there is a steady interest not so much in the therapeutic properties of hemp, but in the possibilities for commercializing the fibrous part of the plant and grain. In particular, the prepared materials say that the coronavirus pandemic , as well as an excess of biomass, has led to the fact that most US agricultural producers refuse to cultivate the plant. The license area in 2021 is said to have decreased by 55% compared to the same period in 2020 to the level that existed before the passing of the 2018 Farm Law. First of all, these trends are associated with market prices for cannabidiol , which have fallen below production costs due to the overproduction of hemp raw materials, which have significant therapeutic potential.

Notwithstanding the above, “the bright spot has been supply and demand for hemp fibers and grains.” A reversal of the modern US hemp industry is expected as the nation's farmers see potential in the fiber and grain portion of the hemp plant. According to their forecasts, the acreage cultivated for the fiber and grain component of hemp in 2024 will exceed the area intended for the production of leaves and inflorescences of the plant, which has significant therapeutic potential.

Trends in the international hemp market

The interest of multinational companies in various sectors of the hemp business is noted. A number of countries are planning to replace tobacco exports with hemp. Hemp production is expected to grow in Latin America, Africa, Europe and Asia driven by consumer demand for various plant constituents in food, pet products, cosmetics, biofuels , building materials and health products. According to one of the authors of the prepared report, “Many countries see participation in hemp production as an opportunity to revive their depressed economies and direct agricultural cultural practices in a green direction.”

The future of drug-free cannabinoids

Regulatory uncertainty in the US has stalled the drug-free natural cannabinoid industry because the Food and Drug Administration (FDA) and drug Administration , FDA) is slow to approve cannabidiol as an ingredient approved for use in food, beverages or dietary supplements. However, drug-free Cannabinoids are hugely popular with consumers, and new California 2021 legislation sets health guidelines specifically for hemp-derived cannabidiol in food, beverages, and cosmetics. U.S. cannabis market experts believe this could be a green light for large multinational companies awaiting FDA approval to add drug -free cannabinoids in consumer products.

Hemp is the new superfood

The report also looks at the prospects for using hemp seeds as a superfood containing protein, omega-3 and omega-6 unsaturated fatty acids. The report predicts that by 2050, hemp protein will become the main ingredient in new plant-based protein products, and by 2050 its market value will rise to $109 billion.