Every day companies are switching to greener alternatives. This move towards a more sustainable lifestyle is forcing entire industries to rethink their entire processing and product line. This shift in market demand towards a greener lifestyle combined with the recent legalization of industrial hemp, Farm Bill 2018, has set up the groundwork to one of the biggest opportunities in our lifetimes, the resurgence of the hemp industry.
Hemp can be used to help make tens of thousands of products and can become a staple raw material for various industries. From concrete to aerospace, hemp seems to have the potential to do it all. It can feed you, clothe you, house you, help you make better electronics, replace tree and oil based products and that is just the beginning. We have estimated the Total Addressable Market to be over $15 trillion. A few of the industries we have included in this market include agriculture, food, textiles, construction, plastics, paper, composites and cosmetics. These massive industries are all set to gain and expand from industrial hemp and are only half of the picture when it comes to its potential.
When you take into consideration the potential of industrial hemp and combine it with the current state of the hemp industry you start seeing a clearer picture of why the growth potential is so great. According to Grand View Research the industrial hemp market, excluding all cannabinoid products such as CBD and CBN, was valued to be $3.61 billion in 2020(1). This means that even though hemp is an amazing plant that can be made into almost everything, we have just begun to scratch the surface of the hemp industry. If we take our previous TAM, total addressable market, of $15 trillion dollars and divide it by the 2020 market cap of $3.61 billion we get a rough estimate of 4100x growth potential. This estimate does not take into account all the other potential variables that could help or stifle hemp growth, but it can be used to get an idea of just how much growth potential there is in the hemp industry.
As we have mentioned before in our “The Biggest Problem in the Hemp Industry” article, there are currently major roadblocks on the road to hemprove the world. Our current processing and manufacturing infrastructure is nowhere near where it needs to be in order to become a real market solution. Combine this lack of infrastructure with our lack of knowledge and technology and you can start to see all the parts of the hemp supply chain that will need to be filled up.
Filling in the gaps of this supply chain is exactly what Hemp OZ Fund is here to do. With our team with decades of experience in the hemp industry we will help fund and create processing and manufacturing facilities in key positions throughout the United States. If you are in the hemp industry and are looking for a way to get funding to expand your business then don’t hesitate in reaching out to us at LinkedIn, Hemp OZ Fund, or check out our website to find out more at https://hempozfund.us
Join us in making this world a greener and cleaner place with hemp for all.
https://www.grandviewresearch.com/industry-analysis/industrial-hemp-market
