28 Investor Report Industrial Hemp Sector New Zealand ’ s New Export Opportunity 2020
Photo credit : Matt Barton , University of Kentucky Ag Com
an ingredient in a broader range of products aimed at the mainstream lifestyle market , including products intended for pets . An example of CBD products moving into mainstream is the replacement of alcoholic beverages with CBD-based beverages .
DECLINE OF CONSUMER TRUST IN PHARMACEUTICAL COMPANIES AND REGULATORS .
Trust has been shaken by the opioid addiction scandal . This leaves chronic pain sufferers in the US , which could be as many as 50 million people , looking for an alternative solution . Increasingly these sufferers are very attracted to medicines and nutraceuticals containing THC and / or CBD for a nonaddictive solution to their problem .
CBD can be added to most fast moving consumer products which are eaten or applied to the skin . These include various food , beverages , skin balms and cosmetics . This potential widespread use of CBD in products makes sales growth very hard to forecast accurately . Analyst forecasts of the CBD market vary widely , possibly totalling US $ 25 billion by 2024 . This wide variation is explained by different market information feeds and different product definitions .
Hemp growers get higher returns from harvesting hemp flowers for CBD . This has resulted in a majority of growers ( 94 % in 2019 ) planting hemp cultivars , the flowers of which are rich in CBD . In comparison , only 11 % of growers are planting for the production of fibre , and 10 % for seed .
Clearly , the US Hemp market was transformed in 2019 despite concerns from the FDA regulator . To some extent , the market jumped past the regulatory confusion to get the product to the customer . CBD products are widely distributed to the mass market via supermarkets and petrol stations , which has increased consumer awareness very quickly .
In the US this has then created a virtuous investment circle of awareness , demand , product creation , distribution , access to capital , and impressive sales growth ; thus sparking more investor demand , which has spread to the UK and European markets . The downside has been that the lack of product regulation has seen many products of inferior quality enter the market , and this has made consumers mistrustful .
The hemp sector in the US has attracted many entrepreneurs from other industries , who have strong marketing skills , and have set up manufacturing companies in many states . For example , Global Widget CBD Corp executives in Florida have a background in the car industry , and have brought manufacturing disciplines