How do i start a hemp business?

How to Start and Market Your CBD Company Know the law. The most essential law to understand is this: CBD products are deemed legal by the federal government only if they are produced from hemp that contains no more than 0.3 percent THC. Prepare a powerful business plan. Find the good suppliers. Build and optimize your website. Build your brand.

The Future Of The Hemp Business

More than 1 in 4 Americans have tried CBD to relieve pain, stress, and anxiety ― By 2024, the CBD industry is projected to hit $20 billion. The 2018 Farm Bill legalized industrial hemp production throughout the United States

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More than 1 in 4 Americans have tried CBD to relieve pain, stress, and anxiety ― By 2024, the CBD industry is projected to hit $20 billion

The Use of Hemp

The 2018 Farm Bill legalized industrial hemp production throughout the United States

What is hemp?

Non-psychoactive strain of cannabis sativa (less than 0.3% THC)

The hemp market is extremely varied, showcasing its many uses
- Personal care: 22%
- Industrial applications: 18%
- Food: 17%
- Textiles: 13%
- Supplements: 5%

Most popularly, hemp oil is also used to make CBD

CBD is commonly used for
- Anxiety & stress: 37%
- Joint inflammation 24%
- Poor sleep: 10%

While the only clinically-proven use for CBD is reducing epileptic seizures, many users report significant results

Early studies suggest CBD might be beneficial for a wide variety of conditions
- Reducing epileptic seizures
  - In 2017, the FDA approved Epidolex, a CBD-based epilepsy medication
- Improving Mental Health
  - CBD has been shown to regulate serotonin production
  - One study called CBD a “useful new approach to treat several neuropsychiatric disorders”
- Increasing Neuroplasticity
  - CBD can reduce inflammation-associated neurodegeneration
  - Prolonged use of CBD has been shown to counteract chronic stress and mental fatigue

By 2022, the market for hemp CBD alone is expected to grow to $22 billion ㅡ up 67 times the market from 2017.

Who Uses Hemp CBD?

Within the past 2 years, use in America has spread across generations
- Age 18-29: 40%
- Age 30-44: 32%
- Age 45-60: 23%
- Over 60: 15%
Where users buy their CBD
- Dispensary 40%
- Retail store 34%
- Online 27%
What form of CBD they use
- Edible food or drink 35%
- Spray or drops 30%
- Vape 30%
- Topical cream 20%
- Smoked 16%
- Pill 15%

The possible medicinal benefits have prompted many to incorporate hemp oil into their healthcare:

Did users replace OTC medicine with CBD?
- Use both concurrently 30%
- Replaced medicine entirely 22%
Alternatives replaced by CBD*
- Over-the-counter pain reliever 47%
- Prescription opioid 36%
- Anti-anxiety medication 33%
- Prescription sleep aid 22%

Keeping up with rapidly changing regulations creates unique challenges for the hemp industry

Challenges for the Future of Hemp

Uneven Regulation
Although the Farm Bill legalized hemp-derived CBD at the federal level, many states have confusing and contradictory laws
- Ohio: CBD can legally be sold, but owning it is considered drug possession
- Kentucky: CBD requires a prescription, though the law is not widely followed
- Wyoming: CBD is ONLY legal when used to treat epilepsy, with a prescription
Proving Quality
Without consistent regulations, proving to customers that a hemp product is quality can be difficult:
- Provide lab results to the customer through your website or using a QR code* on the product label
- Ensure that certified Good Manufacturing Practices (cGMP) are followed throughout the manufacturing process
Better Banking
Wary of risk, U.S. Bank subsidiary Elavon recently stopped offering services to all cannabis-related companies
- Hemp farmers, CBD manufacturers, retailers, and dispensaries must find alternative methods of financing
- In 2019,
  - Square began an invite-only beta test for CBD businesses
  - SAFE Banking Act proposed in Congress
    - The law would allow banks to work with state-legal cannabis businesses without risk of prosecution

Advice for the hemp industry going forward? Be diligent and creative to keep up with industry trends, quality standards, and changing regulations

The hemp industry is exploding due to the popularity of CBD ― Are you ready for the future of hemp?

Sources:

https://cannabiswire.com/2019/04/24/which-big-banks-are-thinking-about-the-safe-banking-act/

https://www.forbes.com/sites/tomangell/2019/05/22/square-quietly-launches-program-for-cbd-cannabis-company-credit-card-processing/#2be774ff2329

https://www.consumerreports.org/cbd/cbd-goes-mainstream/

https://www.businessnewsdaily.com/15052-how-to-start-a-cbd-business.html

https://www.congress.gov/bill/115th-congress/house-bill/5485

https://www.leafly.com/news/cannabis-101/hemp-101-what-is-hemp-whats-it-used-for-and-why-is-it-illegal

https://www.frontiersin.org/articles/10.3389/fneur.2018.00759/full

https://www.ncbi.nlm.nih.gov/pubmed/14583744

https://www.frontiersin.org/articles/10.3389/fphar.2017.00269/full

https://www.brightfieldgroup.com/post/hemp-cbd-market-to-reach-22-billion-by-2022

https://www.ncbi.nlm.nih.gov/pubmed/23298518