Hemp, a non-psychoactive variety of cannabis, is shown as a business or investment opportunity for Latin American industrialists in the northern giant.
What is hemp and why is it presented as a business opportunity for Latin American entrepreneurs who want to venture into a business that, according to the consultant specializing in cannabis BDSA it’s estimated in the United States alone, worth more than $2 billion and could skyrocket to $20 billion by 2025?
Let's start by explaining that hemp is a cousin, so to speak, to marijuana; from Cannabis Sativa. This species is being used by industrialists around the world for its different varieties and uses: more than 25,000 hemp-based products, including car parts, furniture, textiles, food, beverages, beauty products and construction supplies.
However, this plant had already been used by humanity for much of its history; Christopher Columbus, for example, would never have reached America without strong hemp ropes and sails. In other words, hemp fiber, seeds, flowers, and stems have played an important role in historical events around the world.
But then why is this an industry that is barely flourishing in much of the world? Well, basically what happened is that drug policies put this variant of marijuana in the same bag as psychoactive substances, a decision that several countries are rethinking, including the United States, since hemp does not It can be classified as psychoactive since it only contains 0.3% of THC (psychoactive component), an aspect that radically differentiates it from its cousin, marijuana.
Now, let's talk about the US states where this business has an important reception. According to the BDSA portal, this market can be classified into three: mature markets which include states such as California, Colorado, Nevada and Oregon; emerging markets including Arizona, Florida, Illinois, Massachusetts and Michigan, and new markets such as Maryland, Missouri and Pennsylvania.
Although this phenomenon is due to the flexibility of the policies that began to change since the approval of the Farm Bill of 2014, where pilot programs were created for farmers in the US to grow legal hemp, along with state agricultural alternatives, the legal battles have taken place, in part, thanks to the medicinal qualities of CBD, a chemical found in the plant.
Let's see on a map how state policy is in the United States in relation to this industry:
Now, this is an investment opportunity in the United States, because according to BDSA, the prospects, compared to other countries such as Canada, are very promising:
To finish, we want to share which are the States of the USA where this industry is expected to generate billions of dollars, among other things, due to flexible policies, advances in research and medicinal uses, the adult use of the plant and global socioeconomic factors that will raise demand for hemp fiber, seeds, flowers and stalks.