The market may be cooling off when it comes to CBD and other hemp-based products, but there’s still tons of opportunity! Here’s what the future may hold.
In 2019, many cultivators and investors jumped into the hemp market when it was booming. Hemp-based products offered a brand new opportunity for making money.
People pour into the hemp industry, believing that hemp was the best choice. Of course, people didn’t expect hemp farming to come with a discouraging factor! The ability to keep their crops healthy and strong.
There are now thousands of pounds of hemp bagged up in storage units or barns for those in the hemp industry. However, many people don’t plan to plant hemp this year since they cannot sell it for a break-even price.
The hemp industry appears challenging due to constantly changing laws and regulations. So what can you expect from the hemp market this year in 2022?
Here is an overview of what to expect from the hemp-based product market.
A Quick Rundown On The Problems The Hemp Market Faced?
Before discussing its future, let’s look at why the hemp industry did not thrive as everyone expected. Many thought the hemp industry would become a moneymaker, as with the tobacco industry.
First, the government did not organize and regulate the sector properly. As a result, regulations constantly changed, posing a challenge for many.
Also, no one expected hemp trends to have so many flops. Farming hemp was also fraught with many problems.
The complexity and labor-intensive nature of hemp farming were unfamiliar to many. However, in 2019, hemp growers suffered losses due to pests and bad weather. They also had to destroy some hemp plants that grew above the legal limit of 0.3% THC.
Farmers found harvesting hemp was costly, and they barely had space for drying. Furthermore, farmers struggled to find buyers and sell their hemp-based products at a profit.
Several unexpected obstacles in the hemp industry made it seem like a failure. Despite this, investing in hemp-based products is not without its positive aspects!
What Should You Expect From Hemp-Based Products?
Many people have a growing concern that the hemp market boom has ended, and they are reticent to invest in the industry now. Although, the hemp industry will remain strong in 2022 and beyond because of these key aspects. Below you’ll discover four of them!
1. Growers Are Cultivating Hemp With Special Care
In recent years, growers have taken a more organic process in hemp farming. Producers are trying to grow, for quality over quantity is vital for profit. They also found growing smaller amounts is helping cultivate hemp better.
Farmers aiming to grow plants for hemp-based products tend to cultivate their plants in a greenhouse or indoor space. The shift indicates the CBD market has shifted toward flowers. However, if researchers like the GVB leadership team didn’t discover better ways to cultivate the plant, growers would still struggle in hemp farming.
2. Fiber Is The Future
Since hemp is such a new crop, growers face many challenges. Researchers in the United States are just starting to develop crops that deliver consistent yields. Markets for hemp products may also be impacted by a lack of reliable seeds, planting calendars, and tried-and-true growing techniques.
Farmers grow hemp to make fiber or grain. However, industry experts say the market share has a long way to go. The processing facilities are limited, supply chains are nascent, and American hemp farmers compete with growers in Canada and China.
3. The Hemp-Derived CBD May Rise
If you notice, in the CBD market, many of the programs focus on the THC level in the marijuana plant. Researchers consider that hemp-derived CBD has many of the same medicinal benefits and is federally legal. What does this mean?
As hemp does not contain THC, producers may use hemp-derived CBD products for medical purposes. Patients who do not want to experience a strong psychoactive effect from CBD can still benefit from a hemp-based product.
Growth in medical CBD products will continue in 2022 and beyond. This is mainly because Boomers and Gen X patients choose alternative wellness options over prescription medications. As a result, demand for products continues to grow, but many consumers do not want to experience the “high effect.”
An increasingly popular new extraction method uses hemp-derived Delta-9 to infuse CBD gummies (potency less than .3%). Although they provide a mild psychoactive effect, the gummies are compliant because their THC content is less than .3%.
4. CBD Market Will Continue To Mingle With The Wellness Industry
People spend trillions of dollars on wellness products! Cannabis brands are targeting new customers by focusing on wellness and personal development. Psst! They learn this technique from the supplement industry.
By using the language and philosophy of the supplement industry, cannabis businesses can introduce their products and tout their benefits to consumers. As brands educate consumers, they will increasingly show them how tinctures, salves, and concentrates can improve their workouts, wellness, and self-improvement routines. Of course, this will, in return, make consumers spend money on hemp-based products.
Remember, many people do not enjoy the experience of being high and prefer products to be less than the recommended THC amount. As long as growers cultivate their plants with special care, hemp-based products will work well within the health and wellness industry.
The Hemp Industry Will Remain Strong
The industry needs a lot of development, especially when it comes to hemp-based products. Also, due to changes in federal and state laws regarding the legality, the market is continuously changing. Is cannabis extracts are appropriate for use in this type of product, or how should marketers label their products? Unfortunately, many within the hemp industry have difficulty answering specific questions, but they won’t have to with great hope for the future.