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Новости/Аналитика

Hemp industry trends in the USA in 2019

25.09.2019

Today, hemp is not just a valuable and unique plant. Consumers of hemp products are becoming more sophisticated, therefore, naturally, the products they use must also be improved. There is a growing need for companies that can produce unique branded goods, vape products , and fulfill individual orders .

Consumers of the American hemp market are becoming more sophisticated and demanding on the quality of hemp products . In accordance with the dynamics of consumption, American manufacturers are trying to meet demand by creating new brands of drinks , food and, of course, therapeutic drugs . Recently, many companies spend millions of dollars on the acquisition of “promoted” and promising brands that attract an increasing number of consumers, and not only in the United States . It is expected that the federal legalization of hemp will strengthen the current dynamics and attract additional investment in the industry. 

Legalization of hemp allows you to develop different areas of hemp production, but the most popular area today is medical . Thanks to the adoption of the farming bill in 2018, which legalized the possibility of growing technical hemp, as well as the use of CBD products at the federal level, consumer demand for this group of products exceeded all expectations. According to research conducted by BDS Analytics and Arcview Market Research, the CBD sales market in the United States will exceed $ 20 billion by 2024. Responding to current demand, Canadian producers licensed in the US market make significant investments in the hemp sector in the United States .

At the beginning of the year, Tilray Inc. acquired Manitoba Harvest, the world's largest cannabis food producer , for $ 419 million. If the US Food and Drug Administration decides to regulate the use of CBD as a food supplement , and not just as a pharmaceutical ingredient, similar deals are expected with large financial injections.

No less interesting dynamics are observed in the media space. Over the past year, the legendary High Times publisher has taken steps to acquire other successful media outlets, such as Green Rush Daily, Dope Magazine, and Culture Magazine, which specialize in covering hemp topics in their electronic and print resources. . It is expected that in the future there will be an increase in investment in the media related to hemp . 

At the same time, the hemp industry is beginning to become more specialized. As large companies from several states crowd out less influential growers from the growing and retail sectors , businesses are increasingly striving to succeed in areas such as distribution. In California, the number of distributors has grown to more than 150, primarily due to favorable rules that allow distributors to pack, repack, and label cannabis products without an additional license. One of the largest and most respected companies in California in the coming years will bring its platform to additional markets in Europe and Asia . This sector can grow significantly over the next five years, as states such as Oregon are considering draft regulations that will allow them to negotiate interstate hemp products distribution agreements .

In the absence of a full-fledged federal bill on the comprehensive use of hemp , many states are moving to "individual" legalization. This model led to the emergence of distributors who adapt to the characteristics of the market in different states and work successfully, accumulating financial and human resources to expand their activities in case federal legislation is adopted. Given that a full federal law on legalization is unlikely in the next few years, it is very likely that companies with capital in several states will continue to grow and absorb smaller competitors.

Various events are becoming more and more popular, where visitors can use cannabis in various forms . Although the use of hemp in public places is not allowed in most states where the plant is a legitimate crop, public consumption is not welcome, therefore, special permission is required to conduct various “cannabis holidays”. So, for example, only in California, they host The Emerald Cup, Hall of Flowers and The Cannabis Cup. Here, participants can buy and consume hemp locally in designated areas. In the future, the organizers of such events hope to expand the boundaries of "celebrations" throughout the country.

Today, hemp is not just a valuable and unique plant. Consumers of hemp products are becoming more sophisticated, therefore, naturally, the products they use must also be improved. There is a growing need for companies that can produce unique branded goods, vape products , and fulfill individual orders . Multidisciplinary companies invest heavily in creating an appropriate infrastructure market. Earlier this year, Tilray announced it would invest $ 32.6 million in expanding its manufacturing capabilities. In the state of California alone, there are about 600 cannabis growers. In connection with the growing demand, the growth of new companies is likely to open up new opportunities for the hemp industry.

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