Farmers planted about 288,000 acres of industrial hemp in the U.S. in 2019. Thanks to the passing of the farm bill, hemp and CBD is legal and the business for it is growing. Hemp is used across all industries, from medicine to clothing.
Hemp investment is a great idea because there are so many opportunities and little risk associated. It’s not as dicey as investing in marijuana, since that has more legal restrictions. If you aren’t convinced, then here are 9 reasons why hemp investments are the next big thing.
1. Consumer Sales Are Growing
Hemp comes from the cannabis plant called Cannabis sativa. This is the same plant marijuana comes from, but there are obvious differences between the two. Both are distinguished by the amount of THC contained.
THC is what causes the mind-altering “high” and marijuana contains a significant amount more than hemp. Hemp contains more CBD and can’t get you high. Hemp is often used for its fibers while CBD is used for its relaxing medicinal properties.
The first step in knowing where to invest is by looking at consumer behavior. When it comes to hemp and CBD, the pattern shows that it is consistently increasing. A good rule of thumb for investments is that you don’t want to put money into something that isn’t gaining much traction.
In fact, the CBD market could reach $20 million by 2024. Between all of the different uses of hemp as well as CBD, there’s no sign of consumer sales decreasing. The stock prices are likely to increase so you’ll be able to sell at an inflated price in only a handful of years.
2. More Industries Are Using Hemp
Investing in hemp is a great idea because more industries are using hemp products than before. People love that it’s a renewable and all-natural source of raw materials. It can easily be incorporated into different types of products.
The best part is that the entire plant can be used. Not only are skincare companies embracing it but there are textiles and clothing made of hemp as well. Hemp is also used in a variety of different health foods.
3. Hemp and CBD Is Legal in All 50 States
Unlike cannabis with THC which is only recreationally legal in 15 states, hemp and CBD are completely legal in all 50 states. CBD oil which is derived from hemp plants is one of the most popular uses of hemp. Because of its legal status, it is easier to sell CBD than it is many other cannabis products.
4. Attitudes About Cannabis Changing
While anything surrounding cannabis used to be controversial, attitudes have changed to be more accepting. This is evident not only by the shift in cannabis laws but in the representation of it in the media. People are clearly growing more comfortable with anything from the cannabis plant being part of their day-to-day.
You can even purchase wholesale CBD with no problem, this is just the future we’re moving towards.
5. There Are Many Health Uses for Hemp
While hemp is more used for fabrics, it has a lot of health benefits. Not only is it used in alternative medicines, but many medical professionals incorporate hemp for different treatments. Hemp is full of healthy fats, so consuming it is great for your heart and CBD has a ton of stress-relieving benefits.
6. Hemp Has Been Around for a Long Time
Hemp has been cultivated for thousands of years, but it is only recently that the government classified it as a controlled substance. The negative attitudes toward the cannabis plant are what created so much controversy, but things are changing. Hemp has been around for so long and used for so many things, an investment in something that has stood the test of time is worth it.
7. People From All Generations Benefit From Hemp
Hemp and anything cannabis-related was associated only with young people for a while. As the years have gone by and attitudes change, hemp and CBD are being used by all walks of life. Not only are young people enjoying the many benefits of it but it can help with many of the ailments that come with old age.
8. Hemp Is a Great Source of Protein
Did you know that about 25% of all calories from hemp is protein? That’s a big number. Hemp is used as an ingredient for many health foods.
That means that hemp products fit nicely with the idea of a healthy lifestyle, making it a great investment option.
9. Return on Investments in the Hemp Market Are Growing
An ROI (return on investment) essentially evaluates how efficient an investment is. If the ROI is high, then that means that you’ll be gaining a nice profit in comparison to the cost. With hemp and CBD, the market continues to grow, which means investment costs are likely to increase.
Investing now is a great idea since the hemp industry has a high ROI.
Benefits of Hemp Investments
If you’re ready to invest and don’t know where to start, consider investing in hemp! Not only are there more industries using hemp than before, but consumer sales continue to grow. Hemp investments are a safer bet than marijuana because it’s legal in all states.
When you’re investing, you have to think through the best options, and part of that is doing your research. These 9 reasons should help you make a decision about investing in hemp.
If you’re looking for more business tips and tricks, check out the finance section of our blog.