US hemp sales reached $820 million in 2017, with CBD oil and personal care products generating the most sales. (Source: Hemp Business Journal)
U.S. hemp sales reached record breaking levels last year, thanks to the continued spread of legalization and the growing popularity of CBD oil.
Hemp Business Journal recently released their 2017 hemp industry analysis, reporting sales of hemp products hit $820 million. Despite ongoing legal and regulatory complications, the industry grew a total of 16 percent last year.
And that number is expected to continue rising. With more and more states seeing the value in hemp, legalization is spreading like wildfire.
Responsible for 23 percent of U.S. hemp sales, CBD products banked in at $190 million last year. Personal care items come in at 22 percent, generating around $181 million.
Here are other major uses for hemp and the total value of those sales:
- Industrial applications – $144 million
- Food – $137 million
- Consumer textiles – $105 million
- Supplements – $45 million
- Other consumer products – $16 million
As mentioned, U.S. hemp sales are expected to rise as laws and regulations around hemp continue to ease.
With Congress increasingly supportive of total federal legalization of industrial hemp, hemp experts are predicting sales can more nearly triple within the next 5 years.
Though it’s only an estimate, Hemp Business Journal expects U.S. hemp sales to reach $1 billion in 2019, and climb as high as $1.9 billion by 2022.
This is due to two important factors: Hemp is easier to grow than other resources, such as cotton or corn. With it’s over 25,000 known uses, businesses see large potential in hemp as a resource.
Still, we have a long way to go until these estimations become a reality. In 2017, over half of the hemp industry was based in Colorado alone. The biggest barrier: not every state is on board with hemp legalization.
Since hemp is still only partially legal, the amount of production allowed varies from state to state. Therefore, we aren’t seeing as big of a hemp boom as we could because farmers and vendors still face regulatory hurdles from growing their crops to bringing products to market.
Read the full report here.