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Industry and Market of Hemp

Introduction of Hemp

Hemp was originated from the middle and lower reaches of Yellow River with over eight-thousand years’ planting history. The hemp textile technology in our country has matured as early as two thousand years in the Western Han Dynasty. “Plain Color Zen Clothing”, coming up from Han Tombs at Mawangdui and other hemp textile products have become the milestone in the developing history of hemp textile technology.

Hemp, also called Huoma, Xianma, Kuima, Hanma, Dama. Species that containing less than 0.3% of tetrahydrocannabinol (THC) is considered as Hemp, and more than 0.3% is considered as Marijuana and Hashish internationally. Hemp is a kind of economic plant with special effects and can be grown in large areas in all parts of China. It has low requirements for soil and climate and can grow on relatively barren land. Planting hemp has become a way to get rich and get out of poverty in some poor areas.

Hemp is full of treasures. The skin, stem, seed, root, leaf and flower of hemp have utility value which can be widely applied in the fields of textile, papermaking, food, medicine, construction, transportation, national defense and military industry and so on. As a kind of traditional economic plant, hemp fiber has the functions of moisture absorption and perspiration, natural antimicrobial health care, good quality of adsorption, excellent quality of anti-UV and unique wave adsorption and sound attenuation. The stem of hemp has high degree of lignification and can be used to produce high value biologic additives, viscose fibers, top grade cigarette paper and wooden ceramics and so on. The leaf and flower of hemp can be used to produce various kinds of health products and the seed of hemp can be used to manufacture top grade edible oil, essential oil and hemp protein.

Main Application of Hemp

The hemp plant contains over 400 kinds of chemical components and can be divided into cannabinoid and non-cannabinoid compounds. Cannabinol (CBN) in cannabinoid has the functions of anti-inflammatory, analgesia, anti-convulsion and suppressing female hormone secretion. Cannabidiol (CBD) has the functions of anti-inflammatory, sterilization, analgesia, antianxiety, antipsychotic, antioxidation, neural protection, reducing enterocinesia and improving learning and memory ability. The hemp contains high quality protein and complex nutrients including 10 kinds of rich essential amino acids.

There are 21 kinds of amino acids in hemp seed protein, including 17 kinds of amino acids that human body needed. Hemp seed oil contains antioxidants, protein, carotene, phytosterol, phospholipid, and various minerals including calcium, magnesium, sulfur, potassium, iron, zinc and phosphorus. Based on the existing functions, we will develop diversified health care products that fulfill one or multiple kinds of the combined functions of the hemp biotechnology industry. Closely following the development trend of the world, develop medical, pharmaceutical, health care products, household supplies, food and beverages, cosmetics, industrial composites and other high-end products for the general consumer market and promote the international and domestic health care market rapidly.

Application and Main Development Products of Hemp

Parts of Hemp	Application	Main Development Products
Skin	Bast fiber of hemp is an excellent resource of fiber materials, and its yield exceeds cotton, line and ramie.	Textile clothing products, fiber composites, special paper products, injection molding products
Stem	Stem of hemp has the hardwood-like characteristics and making it the excellent material for making paper and processing viscose.	Construction materials, environmental protection materials, animal mat grass
Seed	Seeds of hemp are rich in nutrients, and contain high contents of essential fatty acids and amino acids. In addition to processing foods, it can also process various kinds of nutritional additives.	Sweets, pastries, salad oil, body care products, animal feed, food additives, industrial oil
Oil	Hemp oil is the excellent raw material for health care products.	Medicinal, nutritional and cosmetic products
Leaf and Flower	Medicinal products	Base oil of perfume, medicines and insect repellents
Root	Medicinal products or processing biofuel as required	Alcohol, fuel and feed, biology power generation

The non-psychotropic active component CBD extracted from the leaf of hemp can hinder the effects of THC on human nervous system, and has pharmacological activities such as anticonvulsant, anti-rheumatoid arthritis and antianxiety, which provides possible treatments for epilepsy, depressive disorder and Parkinson’s disease. It has significant economic and social benefits. Hemp has become an important new industry direction for modern biopharmaceuticals and has important application value in medical treatment, people’s livelihood and other aspects.

Both CBD and hemp seed oil are natural anti-aging and antioxidant green plant elements that can positively improve the condition of human skin and make the skin glow.

Hemp seed oil is a kind of highly nutritious food containing antioxidants, protein, carotene, phytosterol, phospholipid, and various minerals, including calcium, magnesium, sulfur, potassium, iron, zinc, and phosphorus. This is a complete source of protein, contains 21 kinds of amino acids, including 17 kinds that human body needed and the content is high. The composition ratio is reasonable and the potency is balance so we can call it “high quality complete protein”. It also contains vitamin A, B1, B2, B6, B3, C, D and E. Hemp seed oil has the characters of green color, and high-level chlorophyll naturally exists in seeds.

Hemp seed oil can be added to any body care or cosmetic products, including creams, lotions, facial or body massage oil, oil, shampoos, hair conditioners, shaving products, lipsticks, soaps and other products. In hair care products, hemp seed oil can increase elasticity and glows.

Hemp protein is the best source of arginine, histidine, methionine, and cysteine, and can provide the all branched-chain amino acids that are most needed for muscle growth. Edestin has positive effects on promoting digestion. It is relatively non-phosphorus and is the backbone of cellular DNA.

China Market

Hemp is the major high-yielding crop of making traditional fiber products in China. It is a kind of high value-added economic crop with a wide range of uses and multi-purpose crop with market prospects that provides fiber, hemp stem and seed. Hemp has many unique natural characteristics, especially its environmental benefits and its natural versatility, which is a valuable kind of crop for ecological economy.

Textiles, clothing, military industry, construction materials, food, medicines, health supplements, cosmetics and skin care products of the downstream of hemp industry in China are relatively well-developed. The bottleneck that restricts the development of downstream industries is that the cultivation of hemp in the upstream has long been the planting mode of scattered peasant households, and has not formed large-scale industrialized cultivation and local initial processing capacity.

With the continuous development of Chinese economy and society, the quality of people’s lives has been continuously improved, and health awareness has increased. As a result, the demand for health supplements and health services has continued to increase. Health care industry in China has developed in ups and downs. About 95% of the population is now in a sub-health state, and about 20% of the population needs to be treated by professional medical institutions and only 5% of the population actually reaches the health standards. The health care industry is rapidly emerging as a sunrise industry with great potential.

After years of development, Chinese consumers have gradually rationalized their attitude and behavior in the consumption of health care products, paying more attention to the safety and efficacy of health care products. At the same time, the government has gradually improved the laws and regulations of the health care industry and tightened its supervision. There is huge room for the development of Chinese health care industry.

Both in China and in the world, the health care industry has become a more and more popular industry. With the development of society and the improvement of people’s living standards, as well as the changes in human’s lifestyle, the total demand for health products is increasing rapidly. It is the health care industry that is led by biotechnology and life science and covers medical treatment and public health, nutrition and health care, fitness and leisure. It is becoming an important industry that guides global economic development and social progress in the 21st century.

Related industry of health care industry is also rising from the third and fourth industry to the world’s largest industry, which is smokeless and green environmental protection industry. Therefore, the health care service has become an emerging sunrise industry and it is also in a rapid rising trend. There is a lot of room for market scale. The development of health care industry in various regions can also play an important role in promoting the prosperity of the local economy, enriching people’s cultural life and improving the living quality of local people.

The rejuvenation of the modern industry of hemp resulted from the major breakthrough in research and mass production of hemp. Firstly, cultivate new varieties of hemp with low activity of anesthetic in agricultural scientific research. The main component of these varieties of anesthetics is THC and the content of THC is controlled at 0.3% which approximates to non-toxicity. This has led to a renewed understanding and affirmation of the industrial use of hemp, and made the cultivation of hemp mechanize, effectively contributing to the development of hemp industry.

In order to meet the needs of the development of domestic and foreign market, China has successively reactivated the hemp industry projects in Yunnan, Heilongjiang, Shandong, Shanxi, and Anhui and Hubei provinces to set up factories and scientific research institutes to carry out research and development of various products. The natural functional advantages of its related products are favored by consumers at home and abroad. The products are exported to countries such as the United States, Canada, Australia, Japan, and Korea. Currently, related products of hemp have also become an export-oriented pillar industry in China.

At present, on the basis of solving scientific and technological problems of deep degumming of hemp, extraction of fine fiber, extraction of CBD, purification of hemp seed oil, extraction of essential oil of hemp, extraction of hemp protein, biocomposites, fiber reinforced composite materials, carry out pilot plant test and industrialized mass production of related products of hemp, and gradually develop the deep comprehensive utilization of hemp products, demonstrating the strength of deep processing in the hemp industry.

Foreign Market

An investigation team of the ArcView Group, which is a hemp industry investment and research company headquartered in Oakland, California, found that the sales of legal hemp in the US market increased by 74% in 2014 and reached 2.7 billion dollars (RMB 16.9 billion Yuan). and there was only 1.5 billion dollars (about RMB 9.4 billion Yuan) in 2013. The report also predicted that it would be a strong development year of legal hemp in 2015 and would increase by 32% in the market. By 2019, all the legal hemp markets will be combined to form a whole market with huge potential which is worth nearly 11 billion dollars.

The hemp industry currently shows tremendous growth potential. If the trend of hemp legalization expands to legalize the use of recreational hemp in 50 states, the hemp industry will be more valuable than the whole organic food industry. The whole market value of hemp legalization all over the country can reach 36.8 billion dollars.

It is predicted in the Forbes Magazine that by 2020, CBD in the US market will be increased by 700%. According to the predicted data provided by the Hemp Business Magazine, the scale of CBD in the US market will reach 2.1 billion dollars by 2020, of which 0.45 billion dollars is from the extraction of hemp-based CBD, the figure was 90 million dollars in 2015. The data provided by the consultant of Lyubo Company is more optimistic, which says that the scale of CBD in the US market will reach 3 billion dollars by 2021.

Currently, the public throughout the United States can legally sell and use hemp-based CBD products without doctor’s prescription. There are many products containing CBD in the US, including foods, medicines and health supplements and so on such as CBD water, CBD chewing gum, CBD chocolate, cakes, etc.