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Message: INDUSTRY BULLETIN: The CBD Industry Flourishes After Overcoming Certain Legal Barriers
NEW YORK, Nov. 13, 2019 - Humans have been using hemp for centuries prior to its disappearance from the public eye. Decades ago, hemp was predominantly being used to manufacture textiles, paper, construction materials, and fuel. However, now, hemp is most commonly known for being a derivative of the cannabis plant, which has caused it to be classified as a drug under international regulations.
Furthermore, most people associate cannabis with its marijuana derivative, which imparts cerebral-altering effects on its users. However, hemp and marijuana are two completely different plants in terms of their biological makeup. Hemp contains much more CBD, or cannabidiol, while marijuana contains a significant amount of THC, or tetrahydrocannabinol. In fact, CBD and THC are just two of at least 113 cannabinoids identified in the cannabis plant. However, THC is one of the only three cannabinoids scheduled by the UN Convention on Psychotropic Substances. Originally, the UN listed THC as a Schedule 1 substance in 1971 but reclassified it to Schedule 2 in 1991 after a recommendation by the World Health Organization (WHO).
However, under the Single Convention on Narcotic Drugs, THC is classified as both a Schedule 1 and Schedule 4 drug. And while the debate over legalizing THC is often a tense topic for most countries, CBD legalization appears to be a more popular direction of discourse. In recent times, CBD has become widely popular because of the therapeutic benefits it offers without causing psychoactive effects on the consumer. Notably, researchers highlighted that CBD can be used to treat minor conditions such as headaches or even severe symptoms associated with cancer. Nevertheless, international health agencies have all agreed that more research is required in order to move forward with approving CBD as a medicinal treatment.
But regardless, a number of countries such as Canada and the U.S. already moved to completely legalize the use of CBD. And 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 also 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 2017, the U.S. hemp market was primarily driven by hemp-derived CBD products. At the time, hemp-derived CBD products accounted for 23% of the total market share, delivering USD 190 Million in sales. Personal care products accounted for 22% of the market share, narrowly lagging behind hemp-derived CBD products. However, by 2022, Hemp Business Journal expects the hemp-derived CBD market to takeoff. The hemp-derived CBD sector is forecast to deliver USD 646 Million in sales. Furthermore, the research suggests that the personal care products segment is expected to witness its market share diminishes as industrial applications fill the gap. And as legal barriers are removed and consumer education continues to spread, the hemp industry is positioned to witness exponential growth.
Furthermore, many researchers are actively pushing legislators and lawmakers to reconsider the scheduling of cannabis because of rich therapeutic benefits. For instance, researchers from the University of Minnesota's (U of M) College of Biological Sciences and College of Food, Agricultural, and Natural Resource Sciences are one of a handful of groups that are federally authorized to study cannabis. The researchers have argued they have "indisputable evidence" that hemp and marijuana should be separated, according to Mercola. "It's a plant of major economic importance that is very poorly understood scientifically… With this study, we have indisputable evidence for a genetic basis of differences among cannabis varieties, further challenging the position that all cannabis should be regulated as a drug," said George Weiblen, a professor with a joint appointment in the U of M's College of Biological Sciences and College of Food, Agricultural and Natural Resource Sciences.
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