Hemp Is A $3.7 Billion Global Industry, But Where Does The US Fall In The Blossoming Market?

The Cannabis Capital Conference is coming back to Toronto! Click here to learn how you can join Tim Seymour, Jon Najarian, Danny Moses, Alan Brochstein and many others.

The cultivation of hemp for industrial use has been a major agricultural product throughout the world for hundreds of years, but the industry has really kicked into another gear in the last few years. According to research presented in the recently released Global State Of Hemp: 2019 Industry Outlook from New Frontier Data, industrial hemp is currently a $3.7 billion industry, with cultivations as large as 100,000 acres dating back to 1998 among European growers.

But in the U.S., onerous regulations kept the domestic market from establishing much of a presence in the global hemp market. While pilot programs introduced over the past decade have encouraged a nascent market to develop, the U.S. hemp industry is set to change drastically with the recent allowances granted to growers in the 2018 Farm Bill.

But where do the new freedoms put the domestic industry in terms of global growers?

The 2019 industry report shed light on just how rapidly U.S. hemp growers have themselves grown, as well as how far ahead countries like Canada and China have developed their cultivation industries. While the U.S. increased its hemp cultivation acreage by nearly 165 percent, the domestic growing industry is still only a fraction that of China or Canada, both of which dedicated more than 100,00 acres to the plant over the course of 2017.


Source: Global State Of Hemp: 2019 Industry Outlook

Despite the relatively minor space U.S. growers hold in global hemp cultivation, The U.S. is actually the second largest market for the product in terms of sales, spending about $1 billion throughout 2018. This is only slightly behind China, which purchased roughly 1.2 billion in hemp-based fibers or other products.


Source: Global State Of Hemp: 2019 Industry Outlook

The report further breaks down these sales figures by analyzing what areas of the market each country has focused its buying on. It reports that 2018 sales were “driven by continued strength in Chinese textiles, European industrials, Canadian foods, and the U.S. hemp-derived CBD market.”

The Cannabis Capital Conference returns to Toronto April 17-18!

The report goes on to predict continued demand in the latter CBD market will be the main driving force behind the global hemp market’s continued growth, which it estimates will reach $5.7 billion by 2020.

Although domestic businesses and investors are just now grappling with the latent practical and medical potential of cannabis in general and hemp in particular, the rest of the world has already reckoned with the plant’s utility and versatility. What now remains to be seen is whether an unbound U.S. industry around the plant can spark new and greater demand for hemp the entire world over.

Posted In: CBDHempNew Frontier DataCannabisNewsCommoditiesTopicsGlobalMarketsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.