22 Investor Report Industrial Hemp Sector New Zealand ’ s New Export Opportunity 2020
The fastest growth in the last 5 years has been in the use of cannabis for medicinal purposes and in FMCG ( fast moving consumer goods ) - via the development of a wide range of hemp health products , including oils , capsules , tinctures , teas and balms .
In addition , hemp seed and seed oil are being used as a food supplement , a health food product , and an ingredient in cosmetics . Also , hemp fibre products are becoming very popular as a textile and as a substitute for fossil fuel plastics and construction materials .
Hemp Industry Daily ( 12 ) reports that the USA hemp products market in 2019 was around US $ 1.6 billion revenue , and dominated by CBD products
• CBD - US $ 1.2 billion
• Seeds and Oil - US $ 200 million
• Fibre - US $ 200 million ( 10 )
There has been a strong consumer interest in Cannabidiol ( CBD ) as an ingredient in a wide range of products . CBD is prized for its anti-inflammatory and calming effects for humans and also pets .
Consumer awareness and market penetration over the past 4 years has been extraordinary , led by the USA and Europeans . US surveys indicate that up to 25 % of consumers aged 18 + have tried CBD , and that 50 % of those consuming it , are doing so as a substitute for other wellness products .
Similar surveys in Europe are indicating a similar picture as CBD products are widely available in large retail chains nationwide . ( 7 )
The cultivation and development of these hemp health products has been facilitated by legalisation of cannabis for medicinal purposes . As well as a trend towards the easing of regulations which had previously hampered the production and sale of hemp health products , including those containing CBD .
Demand Drivers When considering these developments , it can be seen that the growth of the cannabis / hemp industry globally can be attributed to a number of drivers .
These include traditional knowledge in regard to the plant ’ s efficacy , present day trends in consumer demand for plant based remedies and products , research based discoveries , and activism around the use of cannabis products for the treatment of certain diseases .
This liberalisation , with the resulting growth in their respective hemp industries , has occurred in a number of European countries , also in the United States and Canada , Australia , and Israel .
Each country or state has a slightly different profile in regard to this . At the highly proscribed end of the continuum are countries such as Germany and New Zealand , which continue to classify cannabis as an illegal substance under anti-misuse of drugs legislation , but which permit certain exceptions to that prohibition . These include medicinal cannabis , and the cultivation , processing , use and consumption of hemp seeds and oils containing minimal THC or CBD .
Other jurisdictions such as Hawaii and the United Kingdom , retain the illegal status of psychotropic cannabis ( marijuana ), however they have legalised the production and / or importation of hemp health products containing CBD extracts and other cannabinoids .
At the most liberal end are countries such as Canada and Israel , and various American States , which have legalised cannabis containing THC for recreational use .
Flowing from this has been the growth of hemp industries ranging from medicinal cannabis , to cannabis edibles and other more consumer