SOURCE: Hemp Business Journal
April 20, 2017 10:27 ET
DENVER, CO--(Marketwired - Apr 20, 2017) - Hemp Business Journal, the leading provider of data and market intelligence for the hemp industry, has published estimates of the size of the 2016 U.S. retail market for hemp products.
Hemp Business Journal and Vote Hemp estimate the total retail value of hemp products sold in the U.S. in 2016 was $688 million. Items like shelled seed, protein powder, soaps and lotions have continued to increase complemented by successful hemp cultivation pilot programs in numerous states. In all, sales of Hemp CBD products boosted the industry to a five year 22% CAGR.
Of the $688 million market size, Hemp Business Journal analyzed the market across seven primary product categories: (1) Food (2) Personal care (3) Textiles, (4) Supplements, (5) Hemp derived Cannabidiol (CBD), (6) Industrial Applications such as car parts, and (7) Other Consumer Products such as paper and construction materials. Further data and market intelligence will be published in the State of Hemp Market Report 2017 in the months to come following completion of Hemp Business Journal's industry-wide survey.
The growth of Hemp CBD -- a category with $130 million in sales and growing at a 53% AGR -- contributed significantly to the $688 million in total sales. Hemp Business Journal reports the Hemp CBD category was led by channel sales in natural and specialty products, smoke shops, and online verticals. CBD-based pet care products are a 'growth category to watch' in 2017. SPINS, the leading market research firm for natural products, tracked $2,470,000 for products with CBD listed as the primary ingredient in 2016. Retail sales leaders in the CBD Hemp category for 2016 included CV Sciences, Bluebird Botanicals, CW Hemp, Mary's Nutritional, and Liberty Lotions, among others.
Pharmaceutical companies continued progress to develop innovative cannabinoid based drugs. In the U.S., GW Pharmaceuticals has received Orphan Drug Designation from the FDA for its CBD based drug, Epidiolex, in the treatment of LGS, Dravet syndrome, Tuberous Sclerosis Complex, and Infantile Spasms, each of which are severe infantile-onset, drug-resistant epilepsy syndromes. Sales of Epidiolex are slated to begin in 2018 or 2019, and are projected by Hemp Business Journal to reach $120 million by 2020. If HBJ forecasts for Epidiolex prove accurate, sales of the drug will represent nearly 7% of total hemp industry sales by 2020 -- an estimated $1.8 billion market.
"Hemp Business Journal estimates the total retail value of all hemp products sold in the U.S. to be at least $688 million for 2016. We estimate the hemp industry will grow to $1.8 billion in sales by 2020, led by hemp food, body care, and CBD-based products. The data demonstrates the hemp industry is growing quickly at 22% five year CAGR and being led by food and body care products, with Hemp CBD products showing a 53% AGR," said Sean Murphy, the Founder and Publisher of Hemp Business Journal.
Eric Steenstra, President of Vote Hemp continued, "To date, 31 states have passed legislation that allows hemp farming per provisions set forth in the 2014 Farm Bill, and the U.S. remains the largest consumer market for hemp products worldwide. We need Congress to pass federal legislation to allow commercial hemp farming nationally, to let our farmers and American business take advantage of the robust economic opportunity hemp provides."
Hemp data charts, research and market intelligence are available on HempBizJournal.com and will be published in Hemp Business Journal's comprehensive annual market report, The State of Hemp 2017. The market report is currently available for pre-order on Hemp Business Journal's website.
Hemp Market Research: https://www.hempbizjournal.com/market-reports/