According to an in-depth analysis of the hemp CBD extract market by the Brightfield Group, hemp-derived CBD products could surpass the cannabis market by 2022. In fact, the Brightfield Group’s report predicts the CBD industry will explode beyond its current value to $22 billion by 2022.
The report’s predictions are based on the expected passage of the 2018 Farm Bill, which will classify industrial hemp as an agricultural commodity and remove industrial hemp from the U.S. controlled substances schedule. The report reveals that descheduling hemp will open doors for a number of industries to enter the hemp market.
MarketWatch says the U.S.-based hemp CBD industry almost doubled from 2017-2018. Hemp CBD extract’s current growth alone is unprecedented because it has primarily been driven by word of mouth. Once industrial hemp is removed from the schedule, advertising could skyrocket, further propelling the market to new heights.
Elixinol’s market trend mirrors predictions
In August 2018, Elixinol Global (ASX: EXL), also known as EXL, our parent company, reported that its revenue doubled within its first six months on the exchange driven primarily by increased demand for our hemp CBD extract products. This mirrors the industry-wide growth the Brightfield Group predicts for the industrial hemp industry in the coming years.
“Due in large part to Elixinol’s strong performance, this is a solid first half-yearly result for EXL and we are delighted to be the only ASX listed company in this sector to record a profit,” says Elixinol CEO Paul Benhaim. “We have delivered exceptionally strong top-line growth, which has seen the Company more than double its size and enabled us to report our first profit position.”
In fact, our growth is a direct result of higher sales rates from our team in Colorado and around the globe. Our team is poised to grow exponentially as the global industrial hemp market continues to expand.
We currently export hemp CBD extract products to 40 countries worldwide, with target markets in Japan and Europe set to increase that number in the coming years. We’re also set to open a new production facility in Colorado late this year, which will further support the growth we’re already experiencing–plus the natural results of the projected hemp industry boom.
“We’re really excited about the 2018 Farm Bill and our participation with the Hemp Roundtable to help move that through,” says Elixinol Sales & Marketing Director Chris Husong. “It’s going to be an exciting time here in America, and hopefully around the world.”
As part of such a far-reaching, impactful industry, we’re thrilled to be a part of hemp’s promising future.