The hemp industry has undergone some notable changes this year. In the face of CBD and cannabis industry growth, projections and statistics are highlighting future changes for hemp businesses.
As the industry evolves, it’s important to keep up with the latest changes, statistics, and headlines in order to ensure your business remains compliant and capable of anticipating challenges.
This article is an overview of the most important hemp industry statistics from 2022. Keep reading to learn what happened in U.S. hemp this year.
Hemp Projected Growth Statistics in 2022
The hemp industry was worth $6.8 billion this year, and it is projected to grow to $18.1 billion by 2027. These numbers reflect a positive upward trend, as the industry was worth only $4.94 billion in 2020.
One of the applications for hemp that is driving this change is its use in the manufacturing of construction materials, furniture, and other textiles. Hemp fiber is a versatile, strong, and eco-friendly alternative to many common materials. It also has thermal properties, making it ideal for construction. For this reason, experts predict its wide range of uses will propel future growth.
Hemp Sectors in 2022
Because of the versatility of hemp fiber, it has surpassed flower as the primary harvest sector this year. Research from PanXchange found the market was split up into the following segments:
- Flower: 6,400 – 6,800 acres (32.5%)
- Fiber: 8,200 to 9,100 acres (43.5%)
- Grain: 4,800 to 5,000 acres (23.9%)
The U.S. hemp harvest experienced hardships this year when compared to the rest of the world. Europe, by contrast, performed exceedingly well. The continent is expected to experience the fastest rate of growth in 2023, especially in the seed and fiber sectors.
This trend is also predicted in America. The National Industrial Hemp Council of America projects that grain and fiber will overwhelmingly overtake flower harvest in just a few years, with over 95% of hemp fields being one or the other by the end of the decade.
Hemp Harvest Statistics in 2022
While many reports demonstrate and predict growth in the U.S. hemp industry, there are some that warn of shrinkage. Research from PanXchange found that hemp harvest in 2022 is expected to shrink by approximately 46% compared to 2021.
Poor growing conditions and overpriced contracts were the main reasons for this expected decline. Because of the nature of the industry, it’s impossible to predict the future with complete accuracy.
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