Hemp Industry Shifts from CBD to Food and Fiber, According to New Report
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This article originally appeared in Presence Marketing’s February 2022 Industry Newsletter
By Steve Hoffman
Look for the industrial hemp market to continue to grow in 2022, in spite of a few handicaps caused by continued regulatory uncertainty from the FDA and supply chain bottlenecks, according to the new Hemp Industry 2022 Opportunities Report published by Let’s Talk Hemp Media. The executive-level report provides an overview of the trends and potential strategies ahead in the growing industrial hemp sector, after hemp has been legalized in more than 65 countries this year.
Two things holding the hemp industry back in the U.S. are supply-chain bottlenecks and regulatory uncertainty, said report contributor Beau Whitney of Portland, OR-based Whitney Economics. “Once the market begins to mature, the future looks bright for the hemp industry,” Whitney noted.
The pandemic and a glut in biomass supply saw farmers turn away from hemp last year. Licensed acreage in 2021 dropped by 55% year-over-year to levels seen before the 2018 Farm Bill, according to the report. CBD market prices fell below production costs, due to a glut of product, as well.
However, a “bright spot was the supply and demand for fibers and grain,” the report said. Expect a “pivot” in the hemp industry as more farmers see the potential (albeit less profitable) of hemp fibers and grains, which are predicted to exceed acreage planted for CBD by 2024-25, Whitney projected.
Regulatory uncertainty in the U.S. has hampered the cannabinoid hemp industry because the FDA to date has refused to approve CBD as an ingredient for food and beverage or dietary supplements. However, CBD remains popular with consumers, and recently passed legislation in California sets health guidelines for hemp-derived CBD in food, beverages and cosmetics. That could be the green light for large multinational food companies waiting for FDA approval to add CBD to consumer products, experts believe.
In addition, hemp seed is viewed today as a superfood containing complete protein and omega-3 and omega-6 essential fatty acids. Hemp protein is poised to become a staple ingredient in new plant-protein foods and is expected to grow to $109 billion by 2050, the report predicts.
The Hemp Industry 2022 Opportunities Report is available at LetsTalkHemp.com. The report is published by the producer of the 8th Annual NoCo Hemp Expo, the hemp industry’s most comprehensive trade show and conference, scheduled for March 23-25, 2022, in Denver, CO.