THE GLOBAL

STATE OF
HEMP
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EXECUTIVE SUMMARY
Published by:

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 EXECUTIVE SUMMARY

THE GLOBAL HEMP
revolution has begun. Hemp markets are develop-
ing, expanding, and impacting agriculture and retail
markets around the world. The time is now to review,
analyze, and seize the opportunities in this dynamic,
emerging market.
What is Hemp?
Hemp is a fast-growing, environmentally friendly
plant with a low cost to produce. It is one of the most
diversely applied and sustainable crops in the world.
Hemp has many uses and byproducts that have driven
farmers to embrace the crop as a hedge against
lower-value crops like soy, cotton, canola, and alfalfa.
As an agricultural commodity, hemp is grown for its
seed, fiber, and flower, or as a multicrop (i.e., hemp
grown for both seed and fiber). The seed, stalk, and
flower are all used commercially. A hemp seed (or
grain) is smooth, hard, and about ¼ of an inch long.
The stalk is comprised of a short woody interior
(called hurds), while the plant’s outer part consists
of long fibers (called bast fiber). Flowers (and to a
small degree other parts of the plant such as the
leaves) are used to create hemp extracts, oils and
cannabinoid isolates.
Biologically, hemp belongs to a family and genus
of plants with wide chemotypic diversity. The
genus Cannabis (hemp and marijuana) is part of
the Cannabaceae family of plants, which includes
a total of 170 species. Interestingly, a primary
ingredient of beer, Humulus (hops), is also from
the Cannabaceae family, making hops and can-
nabis genetic cousins.

SEED FIBER FLOWER EXTRACTS

De-Hulled Non-Viable Bast Hurd Full-Spectrum THC-Free

Whole Oil (FSO) Distillate Oil

Viable Primary Secondary Isolates

Whole
Lignin

Feminized Non- Other Terpenes

Feminized Cannabinoids
(e.g. CBN &
CBG)
Cannabidiol
(CBD)

H E M P B U S I N E S S J O U R N A L, A D I V I S I O N O F N E W F R O N T I E R D ATA, A L L R I G H T S R E S E R V E D | N E W F R O N T I E R D ATA .C O M | 2
 EXECUTIVE SUMMARY
Cannabis contains three primary subspecies —
Sativa, Indica and Ruderalis — and has a record of
use dating back thousands of years. Indeed, recent
discoveries suggest that hemp may have been
among the first plants humans domesticated, over
10,000 years ago. Historical data shows how past
cultures of Asia, India, and Europe utilized hemp for
industrial and medical benefits. Ancient documents
from Egyptian and Greek physicians illustrate
hemp’s use both for medical and industrial purposes.
The legal definitions and differences between can-
nabis, marijuana and hemp vary worldwide based
on varying levels of the psychoactive cannabinoid,
tetrahydrocannabinol (THC). In most countries,
hemp is defined as cannabis with less than 0.3%
THC on a dry weight basis, while in several countries
(including Switzerland), hemp is defined as less than
1.0% THC. As such, the distinction between hemp
and marijuana is a legal construct applied to the same
genus of plants, cannabis.
In this report, cannabis refers to the plant species
Cannabis sativa L and all of its industrial, medici-
Recent discoveries
suggest that hemp may
have been one of the
first plants humans
domesticated, over
10,000 years ago.
H E M P B U S I N E S S J O U R N A L, A D I V I S I O N O F N E W F R O N T I E R D ATA, A L L R I G H T S R E S E R V E D | N E W F R O N T I E R D ATA .C O M |
nal, and recreational varieties. The terms hemp and
industrial hemp are used interchangeably, and the
term marijuana refers to the plant used as a medic-
inal or recreational drug.
In the early 1990s there were less than 10 countries
growing hemp as part of an organized, commercial
market. Today, approximately 30 countries com-
mercially grow hemp, with 15 countries conducting
research. In all, there are nearly 50 countries now
growing hemp, and many more considering whether
to permit its cultivation.
Global Markets
Currently, there are three mature hemp producer
markets: China, Canada, and the European Union. As
of the publication of this report, most regions have not
reported their 2018 cultivation numbers (except the
United States). According to Health Canada, there
were 137,000 acres of hemp planted in Canada in
2017, with Saskatchewan leading all provinces (with
nearly 56,000 acres planted), followed by Alberta
(with almost 45,000 acres planted), and Manitoba
(with 30,000 acres planted). Most of Canada’s hemp
products are exported for sale in other countries,
primarily the United States.
China planted approximately 113,000 acres in 2017,
representing about a 15% growth from 2016. The
extent to which cultivation is expanding in China
remains unconfirmed, with many hemp cultivators
preferring to remain anonymous due to fear of being
falsely connected to illegal marijuana growing activ-
ities. While 113,000 acres of hemp cultivation was
confirmed, a more accurate estimate may be as high
as 200,000-250,000 acres. The China hemp
market remains the global leader, driven by its domi-
3
 DE VELOPED GLOBAL MARK E TS: HEMP ACRE AGE COMPARISON

150,000

120,000

90,000

60,000

30,000

0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

˜˜ European Union ˜˜ Canada ˜˜ China

Source: Nova-Institut and EIHA (European Union), Health Canada (Canada) and FOASTAT. Cultivation in China predates 2016, but his-
toric data is sparse and inconclusive, and Hemp Business Journal did not begin tracking until 2016.

G L O B A L H E M P C U LT I VAT I O N L E A D E R S : A C R E A G E

150,000
137

120,000 114

98.8

90,000 82.2

60,000
42.1
35.8
30,000 25.7
14.8
9.7 8.6 6.6 6.0
3.7 5.3 5.6 5.6 5.0 6.1
0
Canada China France United States Estonia Germany Italy Netherlands Lithuania

˜˜ 2016 ˜˜ 2017

Source: Health Canada, EIHA, FOASTAT, Vote Hemp and Hemp Business Journal

H E M P B U S I N E S S J O U R N A L, A D I V I S I O N O F N E W F R O N T I E R D ATA, A L L R I G H T S R E S E R V E D | N E W F R O N T I E R D ATA .C O M | 4
 EXECUTIVE SUMMARY

nant textile market. The country is poised for explosive
growth once the domestic extract market opens, and
Chinese companies begin developing nutraceutical
and pharmaceutical products with CBD.
While China and Canada are the oldest and most
established hemp markets in the world, there are
several up-and-coming disruptive markets. The
United States recently passed the 2018 Farm
Bill, with U.S. commercial cultivation expected to
increase dramatically due to the historic legislation.
According to the European Industrial Hemp Asso-
ciation (EIHA), France led European cultivators with
over 42,000 acres of hemp produced, representing
a 17.5% increase in production from 2016. While
France has consistently been Europe’s hemp cultiva-
tion leader, in just two years Estonia has emerged to
become Europe’s second leading cultivator, followed
by Italy, Lithuania, the Netherlands, and Germany,
respectively. New Frontier Data predicts that
France will continue to lead the European market
as Germany grows to displace Estonia as Europe’s
second biggest cultivator by 2019.
Other leading cultivators around the world include
Russia, Chile, and South Korea.
Global Hemp Sales
Hemp is a unique plant, with over 25,000 identified
uses. Indeed, the uses and derivative products of
hemp are so diverse that hemp globally intersects
more markets and industries than any other crop.

USES FOR HEMP

Entire Cell Stalk Leaves Flowers Seeds

Plant Fluid

Seed
Bast Fibers Hurds (Pulp) Extracts Hempseed Oil Foods
Cake

Consumer Industrial Building Industrial Personal

Paper Foods
Textiles Textiles Materials Products Hygiene

zz Boiler zz Abrasive zz Apparel

Twinezz zz Printing zz Fiber- zz Animal zz Oils zz Salad Oil zz Car Parts zz Soap zz Animal zz Granola
Fuel Chemi- zz Diapers
Rope zz Paper board Bedding zz Distillates zz Margarine zz Bio-Plastics zz Shampoo Feed zz Birdseed
zz Pyrolysis cals zz Fabrics
zz Nets zz Fine/ zz Insulation zz Mulch & zz Isolates zz Food Sup- zz Scooters zz Bath zz Protein- zz Cereal

Feed- zz Hand-
zz Canvas Specialty zz Fiberglass Compost plements zz Semicon- Gels Rich Fiber zz Bars

stock bags
zz Tarps Paper Substitute (Vitamins) ductors zz Cos- zz Protein

zz Denim
zz Caulk zz Filter zz Cement zz Cooking zz Animal metics Powder
zz Shoes
zz Carpets Paper zz Stucco& Oils Bedding zz Lotions

zz Fine
zz Brake/ zz Newsprint Mortar zz Oil Paints zz Balms

Fabrics
Clutch zz Card- zz Varnishes

Linings board/ zz Printing Inks

zz Argo-fiber Packaging zz Fuel

Composites zz Solvents

& Molded zz Lubricants

Parts zz Putty

Source: New Frontier Data

zz Geotextiles zz Coatings

H E M P B U S I N E S S J O U R N A L, A D I V I S I O N O F N E W F R O N T I E R D ATA, A L L R I G H T S R E S E R V E D | N E W F R O N T I E R D ATA .C O M | 5
 INDUSTRY SECTORS BREAKDOWN

Food Supplements Personal Consumer Other Consumer Industrial "Hemp" CBD

Care Textile Applications
˜˜ Dairy ˜˜ Dietary ˜˜ Soap ˜˜ Clothing ˜˜ Pet Food ˜˜ Automotive ˜˜ Supplements
˜˜ Bread Supplements ˜˜ Beauty ˜˜ Uniforms ˜˜ Pet Supplements ˜˜ Green Building ˜˜ Topicals
˜˜ Grains with hemp that Products ˜˜ Socks ˜˜ Household Cleaners ˜˜ Industrial Textiles ˜˜ Food/Drink
˜˜ Beverages do not contain ˜˜ Lotions ˜˜ Blankets ˜˜ Paper ˜˜ Bedding Materials ˜˜ Pet Products
˜˜ Snack Foods CBD ˜˜ Balms ˜˜ Other ˜˜ Jewelry/Crafts ˜˜ BioFuels
˜˜ Packaged Foods ˜˜ Salves ˜˜ Other ˜˜ BioPlastics
˜˜ Prepared Foods ˜˜ Oil Wells
˜˜ Condiments ˜˜ Other

To assess the global hemp market, sales were

$ 3.7 BILLION GLOB A L HEMP -B ASED aggregated from every country where commercially
PRODUCT SALES BY REGION 2018
significant quantities of hemp products were sold.
Import and export data were analyzed and bench-
marked with national gross domestic product in
2% countries where retail data did not exist. Retail sales
3% 1%
data was collected in the United States from SPINS,
6% and interviews of leading companies were conducted
33% to assess consumer behavior and demand in major
country markets.

The global market was analyzed across seven geo-

graphic regions:

1. The United States

2. Australia
3. Canada
27% 4. China

28% 5. The European Union

6. South and Central America
7. Africa/Other
˜˜ USA ˜˜ South & Central
˜˜ China America Sales from each region were then analyzed across
˜˜ Canada ˜˜ Other Regions
(Africa/Asia) Hemp Business Journal's (HBJ's) seven industry
˜˜ Europe
sectors: Hemp Food, Industrial Applications, Con-
˜˜ Australia
sumer Textiles, Consumer Products, Personal Care,
Hemp-Derived CBD, and other Supplements.
Source: New Frontier Data

H E M P B U S I N E S S J O U R N A L, A D I V I S I O N O F N E W F R O N T I E R D ATA, A L L R I G H T S R E S E R V E D | N E W F R O N T I E R D ATA .C O M | 6
 EXECUTIVE SUMMARY

China led all countries with nearly $1.2 billion in sales
in 2018, followed by the United States ($1.0 billion),
Europe ($980 million), and South and Central
America ($220 million).
In total, the global hemp market reached $3.7 billion
in retail sales in 2018, with an annual growth rate of
15% driven by continued strength in Chinese tex-
tiles, European industrials, Canadian foods, and the
U.S. hemp-derived CBD market. The hemp CBD
market is expected to quickly expand and be the
primary driver of global industry growth.
By 2020, the global market is expected to reach
$5.7 billion across all markets, representing a
three-year compound annual growth rate (CAGR)
of 17.5%. The global growth in 2019 and 2020 is
expected to be driven by the 2018 Farm Bill in the
U.S., Epidiolex’s going to market in the U.S. and
Europe, Canadian licensed cannabis producers
(LPs') entering the international hemp market, and
the rise of the Chinese hemp CBD nutraceutical
and supplement market.
Such convergent forces will propel the growth of
hemp globally, and lay the foundation for a large,
multisector industry, while leading other countries
to include hemp within their agricultural economies.

GLOB A L HEMP S A LES 20 16 -2020e

$7 30%

$5.73
$6 25%

$5
$4.58 20%
$3.74
BILLIONS

$4
$3.14 15%

$3 $2.76

10%
$2

5%
$1

$0 0%
2016 2017 2018 2019e 2020e

˜˜ Sales ˜˜ Growth

Source: Hemp Business Journal estimates ($ bil., consumer sales)

H E M P B U S I N E S S J O U R N A L, A D I V I S I O N O F N E W F R O N T I E R D ATA, A L L R I G H T S R E S E R V E D | N E W F R O N T I E R D ATA .C O M | 7
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