Oil poured onto hands

Hemp has been making headlines and it’s no wonder that many investors are eyeing this green product. You might picture marijuana when you hear hemp, but industrial hemp has many uses that are not related to the psychoactive effects of THC. Products derived from hemp are on the rise, especially as CBD oil and other related products are becoming legal around the world. CBD is extracted from hemp plants and induced in various products, from cosmetics to food. CBD is also linked to many wellness and health benefits, so it is no wonder that the demand for hemp is getting higher and higher. We decided to gather a few of our top reasons why you might consider investing in industrial hemp.

1. High Demand in CBD Oil

The CBD market is gaining its ground as more companies are expanding their offering with CBD products. The global hemp market is expected to reach USD 10.6 billion by 2025 alone, so companies are jumping onto the bandwaggon to appeal to consumers by releasing CBD products. Since CBD is derived from hemp plants, investors are scrambling to invest in the industrial hemp processes.

2. Increasing Becoming Legal

In the US alone, the 2018 Farm Bill was signed which made hemp legal on a federal level. Previously, many restrictions were required to transport and manufacture hemp. Although hemp has been legal to grow in the US since 1998, there were many specific permits required from producers because of it’s relationship to marijuana. In the UK, CBD is legal, but any THC products are still illegal. Hemp is appealing because it is non-psychoactive and doesn’t get you “high” like THC. It is a matter of time as legality increases around the world, along with the demand for CBD.

3. Gaining Popularity in the Medical Industry

There are many benefits to using CBD related products. CBD is claimed to help alleviate pain, decrease anxiety, improve sleep, and help maintain healthy skin. There are various CBD health benefits that are therefore making companies introduce new products. The U.S. Federal Drug Administration (FDA) even approved an epilepsy drug containing CBD as an active ingredient, which helped to further make CBD accepted in the health industry. This helps drive the demand for hemp since CBD oil is created from hemp plants.

In addition to the various studies supporting the health benefits of CBD, pet companies are also jumping aboard to offer furry related CBD products. These products are a natural alternative to treating various ailments, such as pain, anxiety or arthritis.

4. Hemp Textile Industry Increasing 

Hemp can be used in many ways. Hemp fibre can be used for making clothing, paper or various construction material. Hemp is a strong, durable plant fibre and it’s resistant to rotting and abrasion. The popular fashion jean company Levi Strauss & Co. has even designed a line that feels like cotton but is actually made from hemp. Many other fashion companies will most likely start incorporating hemp fabric in their collections as everyone is starting to live more sustainably. 

Unlike cotton, growing hemp requires much less water and chemicals to manufacture. Hemp can be blended with other fibres to make various textiles. Some are calling hemp as a sustainable cotton alternative. Hemp only takes three months to harvest compared to cotton, which takes up to nine months. Be ready to see hemp fabric more and more in the fashion industry. 

5. One Crop, Endless Possibilities

Another reason what makes hemp so appealing is that the entire plant can be utilized. The leaves are obviously used to produce CBD oil, but the stalk as stated in the previous point can be used to make hemp textiles for various uses. So, what all can be made from hemp plants? Let’s name a few:

  • Food products (such as hemp protein)
  • Construction materials  (hemp-reinforced plastic)
  • Medicine (CBD oil)
  • Raw fibre (hemp fibre)
  • Fuel (hemp oil used to make biodiesel)
  • Other (jewellery or paper)

These are just some reasons why hemp is an appealing investment. Demand is increasing and so is the interest to invest in hemp. As usual, be sure to consult with a financial advisor and do your research before investing in any type of scheme.

Need some more helpful tips? Read our article on how to How to Choose a Financial Advisor or our Top Tips to Consider When Investing in Agribusiness.

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