Getting a Handle on Hemp: New Report Examines Cannabinoids, Fiber, and Grains

By Trevor Yahn-Grode, Data Analyst, New Frontier Data

New Frontier Data’s latest annual report about the U.S. hemp market is scheduled for release this month.  Available to the industry free of charge starting March 23, the report offers a high-level view of the most important developments in each sector of the burgeoning hemp industry: cannabinoids, fiber, and grain.

As the market sectors grow and develop, the distance between them will accordingly expand. In the long term, cannabinoid production and fiber/grain applications may have little mutual overlap as regional cultivars are developed and specialized. For now, however, they are unified by the national conversation taking place around hemp and its role in the future of our economy.

A summary of the topics and issues which the report will explore in full detail:

CANNABINOIDS:

Despite a lack of clear regulations from the FDA, thousands of CBD brands are vying for market share in a crowded subsector. The crash of biomass prices, while bad for farmers and extractors, has led to cheaper and more widely available CBD products for consumers — which in turn has attracted more consumers into the market. Indeed, according to New Frontier Data’s preceding U.S. Hemp Market Report: Cannabinoids Edition (Vol. 1), 51% of Americans report having friends or family who use CBD.

With a new U.S. presidential administration perceived by many industry operators as pro-cannabis, CBD brands may rest a bit easier on the direction of the industry, but should closely watch regulatory movements throughout the year to best position themselves for future opportunities and growth.

Report topics include:

• Market size and growth projections
• Regulatory analysis
• Growth and potential of minor cannabinoids
• 2021 business outlook

FIBER:

In the emerging hemp fiber sector, American firms have started to build out their supply chains, and are setting ambitious goals for growth. While but a handful of firms were operational in 2020, hopes are high for industrywide operational expansion in 2021. As the Biden administration proceeds with its $2 trillion Climate Action Plan with support of Democratic Party allies in Congress, hemp advocates are pointing to hemp fiber’s potential role in decarbonizing the economy, and the many thousands of environmentally friendly products which can be made from it.

Still, the hemp industry at large is marked by a lack of primary processing capacity, and by manufacturers who are either hesitant or unaware about the capability for implementing hemp fiber into disparate product lines. This year looms as a critical one for the young sector, as companies in 2021 race to develop a robust supply chain and bring products to market.

Report Topics Include:

• Production data
• Interviews with fiber processors
• Market size assessment, growth potential, and use cases
• Industry keys to success
• 2021 business outlook

GRAIN:

Although U.S. imports of hemp seed reached a collective record high in 2020, American farmers are beginning to cultivate hemp for grain at scale, and to supplant imports from long-established Canadian farmers. Growth in the market is being fueled by changing consumer preferences, including increased demand for plant-based proteins and consumer concerns over the environmental impacts of their food choices. The popularity of edible hemp seeds has soared in recent years, in part thanks to the increased visibility of hemp products resulting from CBD’s rise to prominence. Companies looking to grow in the space in 2021 need to focus on consumer education, regulatory outreach, and product development.

Report Topics Include:

• Market size and growth assessment
• Potential and impact of import domestication
• Key trends influencing consumers’ purchasing behaviors
• 2021 business outlook