US$820M worth of hemp products sold in 2017, says report

By @chelean on
Medical Cannabis
Packages of medical marijuana are seen on a counter at a dispensary belonging to Tikun Olam, Israel's largest medical marijuana supplier, in Tel Aviv March 27, 2016. Picture taken March 27, 2016. Reuters/Ronen Zvulun

A recent report has estimated sales of hemp products in the US in 2017 to be US$820 million (AU$1.12 billion). The types of hemp products included in the data are food products, personal care products, supplements and more.

Based on the total US$820 million sales, the Hemp Business Journal estimated the sales by category:

  • Hemp-derived cannabidiol (CBD) - US$190 million (23 percent)
  • Personal care products - US$181 million (22 percent)
  • Industrial applications - US$144 million (18 percent)
  • Hemp food - US$137 million (17 percent)
  • Textiles - US$105 million (13 percent)
  • Supplements - US$45 million (5 percent)
  • Other consumer products (paper, construction materials, etc) - US$16 million (2 percent)

*US$1 = AU$1.37

The journal also predicted that the hemp market would reach US$1.9 billion (AU$2.6 billion) in the US by 2022, with a compound annual growth rate of 14 percent in a span of five years.

With more states considering more tolerant regulations on marijuana, these projections could benefit legitimate companies that have always been in the industry ever since there were just only a few states that legalised marijuana. For instance, PotNetwork Holdings (OTCMKTS:POTN), one of the pioneers in the hemp industry that was founded in 2004, just recently reported over US$10 million in sales within the first five months of 2018. It is committed to the research and development of different cannabis-based products for various industries. The company has products in all 50 states and also deals with global distribution of premium hemp extracts with various types of cannabinoids and hemp derivatives.

An opportunity for legitimate marijuana companies

Some marijuana consumers are likely to switch to legal suppliers after a series of marijuana legalisations not just in the US, but globally. Though legal concerns could be the main reason for their switch, purchasing through legal channels could ensure the quality of any cannabis product — from harvesting to processing — just as what POTN does. It employs medical professionals and industry experts, guaranteeing that every product produced is safe, effective and of excellent quality.

It is not only the marijuana companies and consumers that can benefit from the growth of the marijuana industry but the investors as well. Some investors being hesitant to invest in this industry due to several legal snags, but there are actually plenty of legitimate marijuana companies that are publicly traded. POTN, for example, is a publicly traded company in the cannabis industry. But it also serves as a holding company for several subsidiaries. One of its many subsidiaries, Diamond CBD, offers a wide range of CBD-based products from edibles and vapes to creams and pet products. As the recent report indicates, hemp products fall under different product categories, which is why POTN could possibly benefit from this growth.

Agriculture and Livestock committee of Texas is now looking to explore the hemp industry. And recently, Canada legalised marijuana on a national level. With more states and countries considering cannabis industry as part of their economic growth, investing in it early could be a great move.

Article based on press releases sent for consideration.