A four-year trend of falling hemp prices has prodded a surge in marketplace newcomers and boosted demand from consumers, according to a recent report from global cannabis industry data, analytics and technology firm New Frontier Data.
Releases this week, the U.S. Hemp Market Landscape: Cannabinoids, Grain & Fiber report detailed the latest perspectives on the growth and transformation of the U.S. hemp industry.
Created in in partnership with Hemp Benchmarks and Blue Sky Hemp Ventures, the report features an analysis of factors impacting the three components of the hemp industry — cannabinoids, grain and fiber — the report identifies the challenges, trends and growth opportunities unique to each sub-sector.
“Despite regulatory ambiguity and supply chain obstacles, the number of CBD brands in the U.S. has surged amidst strong and growing consumer demand,” said New Frontier Data Founder & CEO Giadha A. DeCarcer. “The 90% decrease of biomass prices from 2016 to 2020, while bad for farmers and extractors, has led to cheaper and more widely available CBD products, attracting more consumers into the market.”
Key Findings of the report include:
- Cannabinoids: Total U.S. consumer spending on CBD was estimated to have reached $3.83 billion in 2020, and is projected to reach $6.26 billion by 2025, a five-year compound annual growth rate (CAGR) of 12.16%.
- Grain: The U.S. is the largest consumer of hempseed used primarily for human consumption; retail sales for hemp food products are estimated to have reached $67.1 million in 2020, and is projected to reach $144.1 million by 2025, at a CAGR of 16.5%.
- Fiber: With more than 25,000 potential uses, hemp fiber is considered one of the world’s most versatile crops; the wholesale market for processed hemp fiber reached $47.1 million dollars in 2020 and is estimated to reach $82.2 million by 2025, a CAGR of 10.53%.
- Despite the small current markets for hemp fiber and grain-based products, the growing urgency to develop sustainable solutions to mitigate climate change strongly positions hemp as a potential alternative to existing carbon-intensive products in a wide range of sectors.
To access the report online and download a copy, readers can visit U.S. Hemp Market Landscape page at the firm’s website, https://newfrontierdata.com/.
