Hemp is a type of cannabis that contains less THC and more CBD. THC is the psychoactive component responsible for providing the effect of a â€śhigh.â€ť It can be dangerous when consumed in large amounts. However, CBD is useful in treating various medical conditions.
In December last year, the Trump administration legalized hemp, which contains less than 0.3% THC, by clearing the Agriculture Improvement Act of 2018, also known as the farm bill. Apart from medicinal values, hemp has a variety of industrial usages, such as clothing, food and beverages, paper, and construction. Letâ€™s look at hempâ€™s uses in the health and wellness sector.
Although the US federal government has legalized hemp, the FDA hasnâ€™t approved any CBD products except Epidiolex, which treats seizure disorders in patients over two years old. However, many hemp-derived CBD products are used in treating ailments such as anxiety, pain, dystonia, and Parkinsonâ€™s disease.
In July 2019, Brightfield Group said it expected the sales of CBD products to reach $5 billion in 2019, year-over-year growth of 706%. The market research company also expects the industry to reach $23.7 billion by 2023. Its report stated that tinctures have the largest share in the CBD market, followed by topicals, vape oils, and capsules. It added that companies are working on developing innovative CBD products, such as facial scrubs, sunscreen, and sparkling water. CBDâ€™s vast market potential appears to have attracted many cannabis players.
Last week, Canopy Growth (WEED) (CGC) introduced its CBD products in 31 US states under the First & Free brand. In October, the company acquired a 72% stake in BioSteel Sports Nutrition, which produces and markets sports nutrition products. The company expects to introduce CBD sports nutrition offerings in US markets by early next year.
In August this year, Aurora Cannabis (ACB) completed the acquisition of Hempco Food and Fiber. The acquisition could expand Auroraâ€™s hemp-derived CBD business. The company also partnered with mixed martial arts organization UFC to conduct clinical research on the effectiveness of CBD in treating pain, inflammation, and other medical conditions.
However, recently, the FDA announced that it could not conclude CBD products were safe using the available data. It warned consumers that CBD products could cause injury to the liver, drowsiness, and diarrhea. Now, letâ€™s look at the industrial usage of hemp.
Apart from health and wellness benefits, hemp has a variety of industrial usages. With a wide range of usages, we expect the hemp sector to have a considerable scope going forward. For more cannabis-related news and updates, check out 420 Investor Daily.