Of the $688 million market size, Hemp Business Journal analyzed the market across seven primary product categories: food, personal care, textiles, dietary supplements, hemp-derived cannabidiol (CBD), industrial applications such as car parts, and other consumer products such as paper and construction materials. Further data and market intelligence will be published in the State of Hemp Market Report 2017 in the months to come following completion of Hemp Business Journal's industry-wide survey.
The growth of hemp—a category with $130 million in sales and growing at a 53% AGR—contributed significantly to the $688 million in total sales. Hemp Business Journal reported the hemp CBD category was led by channel sales in natural and specialty products, smoke shops, and online verticals. CBD-based pet care products are a “growth category to watch” in 2017. SPINS, the leading market research firm for natural products, tracked $2.47 million for products with CBD listed as the primary ingredient in 2016. Retail sales leaders in the CBD hemp category for 2016 included CV Sciences, Bluebird Botanicals, CW Hemp, Mary's Nutritional, and Liberty Lotions, among others.
Pharmaceutical companies continued progress to develop innovative cannabinoid based drugs. In the U.S., GW Pharmaceuticals has received Orphan Drug Designation from the FDA for its CBD based drug, Epidiolex, in the treatment of LGS, Dravet syndrome, Tuberous Sclerosis Complex, and Infantile Spasms, each of which are severe infantile-onset, drug-resistant epilepsy syndromes. Sales of Epidiolex are slated to begin in 2018 or 2019, and are projected by Hemp Business Journal to reach $120 million by 2020. If HBJ forecasts for Epidiolex prove accurate, sales of the drug will represent nearly 7% of total hemp industry sales by 2020—an estimated $1.8 billion market.
"Hemp Business Journal estimates the total retail value of all hemp products sold in the U.S. to be at least $688 million for 2016. We estimate the hemp industry will grow to $1.8 billion in sales by 2020, led by hemp food, body care, and CBD-based products. The data demonstrates the hemp industry is growing quickly at 22% five year CAGR and being led by food and body care products, with hemp CBD products showing a 53% AGR," said Sean Murphy, the founder and publisher of Hemp Business Journal.
Eric Steenstra, president of Vote Hemp continued, "To date, 31 states have passed legislation that allows hemp farming per provisions set forth in the 2014 Farm Bill, and the U.S. remains the largest consumer market for hemp products worldwide. We need Congress to pass federal legislation to allow commercial hemp farming nationally, to let our farmers and American business take advantage of the robust economic opportunity hemp provides."