improve the efficiency of regulatory pathways for the lawful marketing of appropriate cannabis and cannabis-derived products ”. ( 13 )
As a result it has been consulting with the hemp industry in the US for over a year , and evaluating the regulatory frameworks that apply to certain cannabis-derived products which are intended for non-drug uses . This consultation includes whether the FDA might consider updating its regulations , in what way , and whether legislative change is appropriate . Unfortunately for the industry , to date no report or proposals have come from the FDA as to its position .
In the meantime , it continues to send warning letters to CBD companies which it considers are making unproven health claims and / or dealing in a non-approved medicine .
Kentucky State - a case study
Kentucky is an interesting case study , as it shows the scale of growth in the hemp / CBD industry of a country or state in which legislation has been changed to untether hemp from ( illegal ) cannabis .
Kentucky is a state with a population of 4.67 million - comparable to New Zealand . It has a large
Investor Report Industrial Hemp Sector New Zealand ’ s New Export Opportunity 2020
hemp industry which has developed in a very short time .
Before hemp was banned again after World War 2 , Kentucky was the leading hemp-producing state in America .
Mitch McConnell is the senator for Kentucky and an ardent supporter of the hemp industry . He is also one of the Senate House leaders who influenced the President to sign the 2018 Farm Bill .
The result has been accelerated economic growth for the state . In 2019 , the statistics from the Kentucky Department of Agriculture show a thriving industry , with 209 licensed growers . Particularly of interest are the increase in licensed growers , and the valuable income from hemp for the farmers , from hemp flowers for CBD .
• 209 licensed growers
• 43 licensed processors
• 12,800 outdoor cultivated acres
• Hemp flower wholesale price US35.00 / pound
• Hemp Seed wholesale price $ US0.75 / pound
• US $ 53 million paid to Kentucky farmers for harvested hemp materials
• US $ 194 million in gross product sales
• US $ 207 million in capital investments
• 1,304 people employed
CBD FUTURE GROWTH PROSPECTS FOR US INDUSTRY
Estimates for the CBD market in 2024 vary from US $ 10 - $ 20 billion , with a compound average growth rate ( CAGR ) from 22 % upwards ( 11 )
( Analysts vary in their forecasting models due to product definitions , and the proliferation of CBD as an ingredient .)
There are a number of reasons for the predicted rapid growth in the United States CBD products sector . These may be applicable in other countries ( depending on regulation ) and include :
Depth of market penetration . CBD products in the USA have been distributed through many states in supermarkets , petrol stations , and a range of large retailers which has made them very visible to consumers .
The versatility of CBD and the nature of consumer demand mean that it will grow from inclusion in health products to being
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