The past year was another strong outing for the burgeoning hemp industry. 2019 was filled with new states and countries opening medical and recreational markets, brands increasing their supply and diversifying their product offerings, and investors opening their checkbooks to a once ostracized industry. 2019 also saw a proliferation of the hemp oil sector. Restaurants and bars infused foods and drinks with hemp oil, national health-conscious stores started carrying hemp products, and online shops started taking over the internet – check this one out. With all this hemp action over the previous year, what can you expect for the upcoming year? Let’s dive into four issues and trends that you should watch for in 2020.
Investment Money Will Dial Back
It’s no mystery as to why investment dollars have poured into the hemp industry over the past couple of years. For one, hemp product technology is innovative and evolving rapidly. From products like vapes, tinctures, topicals, edibles, and much more, to software like POS systems and Track-and-Trace, there’s no shortage of enticing investment opportunities surrounding the hemp industry. Another reason investments increased is due to the world’s shifting perception of hemp. More research has been conducted, more people have tried hemp products, and more illnesses have been found to be alleviated by hemp oil. These reasons, combined with many others, makes it an appealing investment. However, investors are realizing not everything colored green turns to gold. Taxes are still too high (and they’re rising) and obtaining a hemp product business license is very costly and very challenging. Don’t expect to see high-profile deals closing every other week like they have been in the past. Due diligence will escalate and investors won’t be as eager to invest knowing how high the hurdles are.
Source: https://thumbor.forbes.com/
New Markets
It seems like with every new year comes new hemp markets. Whether it’s a country, a state, or even a municipality, new hemp markets are always emerging. In the United States, several states are looking to adapt new hemp product programs during the upcoming 2020 elections. For example, Florida, Arizona, Arkansas, Mississippi, Idaho, Nebraska, New Jersey, North Dakota, and South Dakota all are anticipating hemp product initiatives to be on their ballot in the 2020 elections. There has also been a lot of momentum towards adopting new hemp markets from countries like Mexico, New Zealand, Luxembourg, Italy, and more. Hemp product investors should keep an eye on all potential markets and regulations to determine if the programs will expand. How stringent or lenient regulations are in a given region will ultimately determine the size and viability of the market. Plenty of hemp markets have opened over the past couple years, and this trend will only continue in the new year.
Vape Crackdown
No hemp product had a 2019 quiet like vapes. Health officials are still investigating hemp products and chemicals that were possibly the cause of illnesses to over 1,600 people nationwide. The federal government, state governments, local officials, and even other enforcement bodies are cracking down on vape products and usage. This will have a ripple effect on other areas within the hemp industry. For example, expect to see more rigorous laboratory testing, expect to see hemp product companies put a stronger emphasis on educating consumers, and expect to see a drop in vape sales until everything is sorted out. It’s important noting that health officials have linked the illnesses to illicit hemp oil vape products. The legalized hemp industry requires legally operating businesses to follow a stringent set of regulations that the illicit market doesn’t adhere to. Hope is high that 2020 will bring enforcement towards illegal operators that pedal unsafe vape products.
Source: https://www.fbi.gov/
Hemp Will Continue to Grow
It wouldn’t be right to wrap up 2019 and predict 2020’s hemp forecast without acknowledging the growth the industry has seen over the past few years. It’s remarkable to see how far hemp has come from the “Reefer Madness” days. With that being said, the fight isn’t over. There are still plenty of doubters out there eagerly awaiting for the hemp industry to implode. High taxes, strict regulations, and high barriers of entry are just a few of the hurdles the hemp industry still faces. 2020 will be another year for the industry to prove its worth and for the people in the industry to stick up for what’s right.
Source: https://www.pardot.com/
Wrap Up
2019 was an eventful year for hemp. Loads of money was invested into the industry, innovative products hit the market, and people from all walks of life came together to enjoy the plant. This is what you can expect from the hemp industry in 2020: less investment money due to strict regulations, new markets will come online all over the world, vape products will continue to be scrutinized, and the industry will grow as a whole. The hemp industry never rests, and 2020 is sure to be another exciting year for all companies, organizations, and people involved.
