NEW YORK - Hemp is known for its multifarious applications, however, it is most commonly associated with cannabis in recent times as hemp's classification under cannabis itself, had it declared federally illegal. After researchers evaluated hemp and realized that it is the non-psychoactive derivative of the cannabis plant, many people's position regarding the plant began to change. Now, hemp is being leveraged for medical applications through researchers extracting its main component: CBD. In combination with the recent passage of legislation like the U.S. Farm Bill and the delisting of CBD as a Schedule 1 drug, the overall hemp industry is positioned to see tremendous growth.
According to data compiled by Hemp Business Journal, a division of New Frontier Data, the total sales for the U.S. hemp industry totaled USD 820 Million in 2017. The research suggests that the industry is expected to grow to USD 1.9 Billion by 2022, and at a CAGR of 14.4% during the 5-year period. In particular, hemp-derived CBD products accounted for the majority of the industry's sales, delivering USD 190 Million in sales total. Furthermore, the segment is expected to continue to dominate the overall hemp industry in the future.