February 20, 2023
By:EmpoweringCPO Insights Team

Hemp and Legal Cannabis (CBD Industry)

Background

This US category report on Hemp and Legal Cannabis (CBD Industry) will be very useful for your team if you are planning to enter this new market. This report can also be useful to your procurement organization responsible for managing and buying this category. This report gives in-depth information about the Hemp & Legal Cannabis (CBD) Industry in the US. This report covers areas like Market Outlook, Channel wise US CBD Market Outlook, Cannabis Supply Chain, Global CBD Oil Market, CBD Oil Extraction Process, Processing and Packaging, Hemp / CBD Cultivation, and insights into leading vendors in this domain. EmpoweringCPO is among the leading Strategic Sourcing Companies. This report by our team of experienced sourcing and procurement professionals can help the procurement team benchmark the current contract when compared with the marketplace conditions.

Introduction

Hemp is grown for three purposes in the United States: seed, fiber, and extracts. Cannabidiol (CBD) is the primary active compound in full-spectrum hemp oil, and the only molecule in tetrahydrocannabinol (THC)-free distillate hemp oil and CBD isolate. With the removal of hemp from the federal prohibition under the Controlled Substances Act of 1970 (CSA), the total U.S. hemp industry is likely to expand at a healthy 18.4% through a 5-year combined annual growth rate from 2018-2022.

Abstract:

  • Hemp is one of the world’s fastest-growing plants, a separate species of the Cannabis Sativa genus that, due to its >0.3% tetrahydrocannabinol (THC) content, makes it literally almost impossible to get high from smoking it.
  • In 2018, U.S. President Trump signed the 2018 Farm Bill into law. The newly revamped bill legalizes industrial hemp in the U.S., and in doing so not only makes hemp and CBD eligible for lucrative federal crop insurance but also removes CBD from the Controlled Substances Act.
  • The world’s biggest marijuana companies, both Canadian and American, are already preparing to capitalize on the hemp-derived CBD market through the development of expansive industrial hemp farm projects in the U.S.
  • The total CBD industry product sales will grow to $1.2 billion by 2020, and nearly $2 billion by 2022; growth rates will decline as the market matures
  • The hemp-derived CBD market, the leading market amongst all product categories is expected to grow 3.3x times by 2022 with a CAGR of 27.2% over 5-years
  • The cannabis supply chain is made up of five main activities: Cultivation, extraction, testing, distribution, and retail
  • The global CBD hemp oil market is projected to surpass US$ 2.5 Bn by 2026 from US$ 950.0 Mn in 2017, expanding at a CAGR of more than 11% from 2018 to 2026
  • The full-spectrum naturally derived flower oil extract is more effective in treating health issues in comparison to a highly refined CBD extract or isolate
  • With the legalization of Cannabis in the US, the packaging and labeling requirements are fully instilled into the market & must be licensed & tracked from seed to sale
  • Colorado, Utah, South Dakota, Oregon, Iowa, Texas, California, Michigan, and Indiana are the major states producing CBD
  • This research is focused on the United States CBD industry along with the CBD Oil Extraction process and packaging of different CBD-infused products.
  • This research also includes leading companies that supply CBD for various commercial uses and have the market potential for both Hemp and Legal Cannabis (CBD Industry).

Table of Content:

Contents Slide No.
Executive Summary 3
U.S CBD Market Outlook 4
Channel-wise US CBD Market Outlook 5
Cannabis Supply Chain 6
Global CBD Oil Market Overview 7
CBD Oil Extraction Process 8, 9
Pure Full Spectrum CBD Oil 10
Processing/Packaging of a variety of CBD Infused value-added products 11
Production life cycle – CBD Isolate 12
US Hemp/ CBD Cultivation 13
Vendor List – CBD Isolate 14
Vendor List – Hemp and Cannabis 15,16

If required EmpoweringCPO can support with additional information and the next steps with executing projects like Procurement Outsourcing. Also, feel free to reach us if a similar report is required for any other category. We are among the top strategic sourcing companies and can help your organization with tools like Procurement Outsourcing Dashboard, Spend Analysis, Procurement Consulting, and Procurement Intelligence.

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Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:

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