By 2024 the CBD industry is projected to total $20 billion, but the industry is not without its challenges. While deregulation of hemp at the Federal level has led to a massive amount of research and development, the deregulations have been lopsided at the state level, leading to some issues with banking, credit card processing, legality, and more. What does the future hold for the hemp business?
What Is Hemp Used For?
Hemp is being used to make some pretty revolutionary products. It’s in food, textiles, supplements, and personal care products. Some people are testing hemp as a building material that will be more sustainable than current alternatives. Hemp twine and cord have always been a favorite, but new applications such as hempcrete and help fiber insulation can help us replace synthetic materials with those that can be used as carbon sinks. Hemp can also be used to make paper at a much younger age than trees, saving the trees for more important work.
But by far the single biggest use for hemp business right now is CBD. It is used to treat epilepsy, anxiety and stress, inflammation, sleep disorders, addiction, and more.
Unfortunately just because hemp has become legalized at the Federal level doesn’t mean the individual states have defaulted to complete legality. In Wyoming, CBD is only legal when it is being used to treat epilepsy. However, in Kentucky you have to have a doctor’s recommendation to use CBD, though that law is not widely followed. In Ohio, CBD is legal to sell but not legal to possess. Meanwhile, businesses have difficulty finding banks and credit card processors because the institutions are afraid of rapidly changing laws about the legality of hemp and its products. Congress is currently looking to pass the SAFE Banking Act to address this issue.
What Does The Future Hold For Hemp Business?
The hemp business is growing and it’s getting pushback from other industries, including the pharmaceutical industry. Proving quality of products in an environment that lacks regulatory oversight is going to be crucial to keep this industry moving forward. Providing independent lab tests, certifications, and being transparent about the growing conditions and refining methods gives consumers peace of mind.
The future of hemp business is going to be rocky before things really take off, but the groundwork is already being laid for this industry to dominate in the next decade. Learn more about the future of the hemp business from the infographic below.