Swissx Cooperative Farming Program
Global Hemp Market Outlook
The Global Hemp Market is in the Green
Swissx was launched well before the Farm Bill or Agriculture Improvement Act of 2018, once again made the commercial cultivation of hemp a legal and regulated industry, allowing for crop insurance and for large scale farmers to enter the business.
Alki David, known for creating the businesses that defined the Streaming TV sector and the Hologram Entertainment business, had already identified CBD as his next big enterprise.
Specific strains had been identified, modified and extensively planted in Switzerland, anticipating the fact that in the CBD market quality and safety assurance would be king. New extraction methods had been pioneered to insure the most efficient and pure products. And a vast distribution network was already in place with, with support of David’s powerful media and entertainment companies.
In most states, CBD dominant products currently make up only about 4% of products being offered through dispensaries. The lack of black market competition for CBD also gives CBD product manufacturers an edge, because lower-cost alternatives don’t yet exist.
What’s more, according to a recent study by Brightfield Group and Hello MD involving 2400 respondents, “CBD-dominant consumers vs THC-dominant customers, not only proved to be much less price sensitive, they take both quality and CBD:THC concentration into consideration before thinking about price.
Given that these users consistently ranked CBD’s lack of psychoactive effects as its best feature, it makes sense that they are concerned with the ratio of CBD:THC in their products.” That means the market for CBD products is much more concerned with quality and flavor, and willing to play a premium price for it.
Recent Market Analysis
Key findings from New Frontier Data’s latest analysis, as presented in the Global Cannabis Report: 2019 Industry Outlook:
- The global cannabis consumer market is currently worth $344 billion worldwide.
- The top five regional markets are:
- 1) Asia ($133 billion)
- 2) North America ($86 billion)
- 3) Europe ($69 billion)
- 4) Africa ($37 billion)
- 5) Latin America ($10 billion)
- New Frontier estimates there are already 263 million consumers participating in the cannabis market worldwide.
- The CBD market in the United States alone is projected to hit $22 billion by 2022.
- Hemp derived CBD has outpaced cannabis sales by 80% growth over 2017.
- Projected market growth of hemp derived CBD will be to $5.7 billion by the end of 2019.
- Imports of hemp more than tripled between 2012 and 2017, meaning that the U.S. is currently not growing nearly enough hemp to supply the demand.
- Within two years the U.S. CBD market will grow larger than the Sports Nutrition market ($7.5 billion, according to New Hope Media, the Skincare market ($17.7 billion, according to the NPD Group), and the Cosmetics market ($14 billion, according to Kline Group).