The passing of the U.S. farm bill, which legalized industrial hemp production nationwide, has signified a sea change in the balance of power of hemp markets around the world. While the U.S. had previously been importing hemp products from Canada, China and Europe, since Congress' re-regulation, its CBD market is expected to spearhead the global hemp industry by the year 2020, tripling the market to $5.7 billion.
A recent Forbes articles stated that CBD sales in the U.S. are projected to reach $22 billion by 2022, which has given many in the market reason to celebrate. Indeed, CBD has ballooned in popularity since 2018, largely thanks to media coverage and the now near-ubiquitous presence of CBD products in the form of beverages, lotions, and self-care goods.
With these changes has come a number of high-profile transactions and agreements. The Yield Growth Corp recently announced that Yield Botanicals Inc., one of its subsidiaries, reached a deal with Vandenbosch Trading Company Ltd. to purchase a 10-acre property including automated greenhouses and extraction equipment for $2.4 million.
The purchase will give Yield Growth complete ownership over its key product ingredients, such as hemp root oil. It will empower the company to research in-house, grow their own plants and build out extraction facilities from the existing infrastructure. The CEO, Penny Green, plans to work with local farmers to develop CBD-heavy hemp strains that will be exempt from the Cannabis Act.
In other recent developments, Aurora Cannabis Inc. recently received approval to sell cannabis oil in German markets. Since late 2015, Aurora has been supplying dried cannabis flower in Germany, becoming a major player in their medicinal cannabis market. With regulatory authorities having cleared the company to sell cannabis oil to German pharmacies, it's well-positioned to lead the growth of Europe's derivatives market.