22 Jan Hemp Industry Opportunities – Hemp Products
This series has previously covered many new opportunities that have emerged around hemp. This is a result of the passing of the 2018 Farm Bill which, among other things, removed hemp from the Federal Controlled Substances list. This has paved the way for legal hemp cultivation and since passage, the industries around hemp and hemp-based products have exploded in the United States.
According to MarketWatch, the industrial hemp market may exceed $270 million by 2025. Hemp-based products are often overshadowed given the current buzz around cannabinol, or CBD. However, hemp itself has a wide array of uses. Every part of the plant from the seeds to the roots can be used in multiple products.
In many regards, it is an environmentally friendly crop, both in terms of the growing process and its uses. This aligns nicely with the gradual shift in public opinion towards finding healthier and more environmentally conscious alternatives to many common products.
Below we examine some of the products that can be produced from each part of the plant.
With hemp now legal on the national level, there has been a hemp growing boom in the United States. Hemp seeds are now in high demand, with most of the supply still currently coming from overseas. In addition to a market for purchasing the seeds to grow hemp, especially hemp that will meet the THC limit, the seeds that are being cultivated are being used in several types of products.
- Foods & Beverage
In addition to environmental benefits, hemp has many nutritional benefits. It is an excellent plant-based protein and a great source of dietary fiber. As such, it is being used in many protein powders and prepared shakes. It is also a rich source of healthy fats and omegas. Beyond protein powders and drinks, the seeds are used for hemp milk and hemp cheese substitutes, and the seeds themselves can be sprinkled onto oatmeal and other dishes. Globally, the use of hemp seeds in foods and beverages is expected to grow over 5% year-on-year between 2019-2025.
- Personal care
Further to the dense nutritional content of the seeds mentioned above, hemp seeds are also high in antioxidants. This makes them particularly well-suited for use in hair, skin, and other beauty products. A further benefit of hemp oil is that it doesn’t clog pores which makes it a great choice for a toxic-free face moisturizer. Topical application has also been suggested to relieve stiffness and pain.
The stalk is the core part of the plant from which the leaves grow. Hemp stalks actually produce the strongest and longest plant fiber in the world, making them suitable for several uses.
The fibers from the stalk of the plant can be used to produce textiles from clothing, purses, and diapers to rope, canvas, and carpeting. The popular brand, Levi’s, originally made their jeans from hemp. Hemp textiles also play a part in this nation’s history. Despite national attitudes towards hemp in the World War II era – which don’t differ much from those prior to the 2018 Farm Bill – the U.S. Army and Dept. of Agriculture encouraged farmers to grow hemp to be used to replace imports that had been cut off due to the war, particularly textiles and ropes.
Paper is another tremendous application of hemp for many reasons. One acre of hemp can produce nearly four times as much paper as an acre of trees. It is suitable for regular printing paper, newsprint, and cardboard. It is rumored that the first two copies of the Declaration of Independence were printed on hemp paper. Hemp paper is known to be much more durable and age slower than regular paper. In 2018, the industrial hemp fibers market was valued at over $43 million due to pulp and paper usage. As we move away from trees, this market will continue to grow.
- Building Materials
The demand for sustainable building materials is expected to drive the industrial hemp market in the future. In North America, the market for hemp used in building materials is estimated to grow around 3% year-on-year from 2019-2025. Hemp has the potential to be used in many alternative building materials, but the most prominent is hempcrete. Hempcrete is formed from a hemp stalk derivative mixed with lime. The result is a strong yet lightweight, water-resistant material that is used for applications such as ceiling insulation and floor slabs.
The leaves and roots don’t have quite as many uses but can still be utilized. Due to their absorbent nature, the leaves make a great all-natural animal bedding option. The roots, on the other hand, are thought to have medicinal properties and be a remedy for things like arthritis, joint pain, fibromyalgia, and eczema.
Over time, the demand for hemp-based products will continue to grow. As more consumers become eco-minded and look to rid their lives of toxic products, hemp provides a strong alternative. That is why hemp-based products are only expected to increase in demand for the foreseeable future.
If you’re considering getting into the hemp industry in any capacity, let Joorney’s Advisory team help you flesh out your idea. We stay abreast of all developments and changes in this space which allows us to give you expert insights and market advice. Once you have your idea formalized, we can help you put pen to paper in a business plan, whether you just need a personal business roadmap or will be seeking outside funding.