Preliminary analysis by the Boulder-based Hemp Business Journal has assessed that sales of hemp based products in the U.S. will reach $500million, an increase of 25% from the previous year of 2014.
Last year hemp based products such as clothing, cosmetics and building materials meant that American spent $400million on that sector. However there is likely to be an increase due to the legalisation of hemp farming in 2014, after a long 77-year long prohibition ruling.
Currently there is no system to account for what the production of hemp is grown and used for, however Colorado, who have 2,000 acres of farm land in production, primarily produce for the non-psychoactive chemical compound cannabidiol, known widely as CBD.
Sales of CBD products alone, used predominantly for pain relief and anti-inflammatory medicines, are predicted to spike at $85million in 2015.
Publisher of the Hemp Business Journal, Sean Murphy, said: “That’s the real story — the CBD market. A couple of years ago, there was no CBD market, (look) how fast that emerged in a year or two.”
Indeed, according to president of Boulder-based CBDRx, Alexis Korybut, industry insiders actually believe that the CBD market will grow to $300million nationally believing that figure to be “conservative”.
The two other states that make up the majority of production of hemp based products are Tennessee with 1,000 acres and Kentucky with 922 acres of farm land respectively.