2014 Annual Retail Sales For Hemp Products Estimated At $620 Million
The Hemp Industries Association (HIA), a non-profit trade association consisting of hundreds of hemp businesses, has released final estimates of the size of the 2014 U.S. retail market for hemp products. Data from market research supports an estimate of total retail sales of hemp food and body care products in the United States at $200 million. Sales of popular hemp items like non-dairy milk, shelled seed, soaps and lotions have continued to skyrocket against the backdrop of the new hemp research provision in the Farm Bill, and increasing grassroots pressure to allow hemp to be grown domestically on a commercial scale once again for U.S. processors and manufacturers. The HIA has also reviewed sales of clothing, auto parts, building materials and various other products, and estimates the total retail value of hemp products sold in the U.S. in 2014 to be at least $620 million.
The sales data on hemp foods and body care, collected by market research firm SPINS, was obtained from natural and conventional retailers, excluding Whole Foods Market, Costco and certain other key establishments, who do not provide sales data — and thus it underestimates actual sales by a factor of at least two and a half. According to the SPINS data, combined U.S. hemp food and body care sales grew in the sampled stores by 21.2% or $14,020,239, over the previous year ending December 31, 2014 to a total of just over $80,042,540. According to SPINS figures, sales in conventional retailers grew by 26.8% in 2014, while sales in natural retailers grew by 16.3%. Indeed, the combined growth of hemp retail sales in the U.S. continues steadily, as annual natural and conventional market percent growth has progressed from 7.3% (2011), to 16.5% (2012), to 24% (2013), to 21.2 in 2014.
“The HIA estimates the total retail value of all hemp products sold in the U.S. to be at least $620 million for 2014,” says Eric Steenstra, Executive Director of the HIA. “Eleven new states have passed legislation and new businesses are rapidly entering the market now that American farmers in a handful of states are finally beginning to grow the crop legally. Challenges remain in the market and there is a need for Congress to pass legislation to allow farmers to grow hemp commercially in order for the market to continue its rapid growth,” continues Steenstra.
When the 2013 farm bill was signed into law in February of 2014, the hemp amendment to the farm bill, Sec. 7606 Legitimacy of Industrial Hemp Research, defined industrial hemp as distinct from marijuana in states where hemp is regulated under authorized hemp pilot programs. This was an historic moment in the longstanding effort to legalize hemp as the act asserts that industrial hemp is not psychoactive, having less than 0.3% tetrahydrocannabinol on a dry weight basis and therefore presenting no drug value.
The bill further allows for states that have already legalized the crop to cultivate hemp within the parameters of state agriculture departments and research institutions. In 2014, 1831 acres of hemp were licensed in Kentucky, Colorado and Vermont. Many licensees were unable to obtain seed in time to plant due to DEA seed import requirements. We estimate that approximately 125 acres of hemp crops were planted during 2014. Read the full text of the Legitimacy of Industrial Hemp Research amendment on the Vote Hemp website: http://www.votehemp.com/PDF/Pages_from_farm0127.pdf.
In January of 2015, The Industrial Hemp Farming Act was introduced in both the House and Senate, H.R. 525 and S. 134 respectively. If passed, the bill would remove all federal restrictions on the cultivation of industrial hemp, and remove its classification as a Schedule 1 controlled substance. Currently, 21 states may grow hemp per Sec. 7606 of the Farm Bill, including California, Colorado, Delaware, Hawaii, Illinois, Indiana, Kentucky, Maine, Michigan, Missouri, Montana, Nebraska, New York, North Dakota, Oregon, South Carolina, Tennessee, Utah, Vermont, Washington, and West Virginia.