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Development status and Prospect Analysis of industrial hemp industry in 2020


There is a component in marijuana called THC, which can make people addicted to hallucinations. Less than 0.3% of marijuana is industrial marijuana, more than 0.5% is drug marijuana, and 0.3-0.5% is used as medicine. In addition, industrial hemp is rich in cannabinol (CBD), which is not found in marijuana. CBD has anti spasmodic, anti anxiety and anti-inflammatory pharmacological effects.

Industrial hemp refers to the hemp whose content of tetrahydrocannabinol is less than 0.3%. In China, industrial hemp is called hemp, which is an annual herb of cannabinaceae. Industrial hemp is widely used at home and abroad.

Development status and Prospect Analysis of industrial hemp industry in 2020

Industrial marijuana is an improvement from addictive marijuana, which is based on the needs of drug control. Because of the large amount of tetrahydrocannabinol (THC) in marijuana, which is the drug component of hallucinogenic addiction, it is listed as the original drug plant and prohibited to be planted. The THC content of foreign addictive Marijuana Varieties is generally about 20%, while that of domestic traditional Marijuana Varieties is between 0.3% and 5%. Industrial hemp is a kind of hemp which can reduce THC content to the international safety standard (less than 0.3%) by breeding technology.

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1.Development status and Prospect of industrial hemp industry in 2020

At present, the cultivation and processing of marijuana in China require licenses, of which more than 30 planting licenses have been issued, and only 4 processing licenses have been issued, including Yunnan hansu Biotechnology Co., Ltd., hankang (Yunnan) Biotechnology Co., Ltd., Yunnan Hansen Biotechnology Co., Ltd., and Kunming baiou Biotechnology Co., Ltd.

Due to the late opening of China's industrial hemp industry, the industry is now mainly promoted by local governments, lacking of clear regulations at the national level. In addition, the local government regulation is prone to differences and regulatory loopholes, and there are certain similarities between industrial marijuana and recreational marijuana, which makes the supervision more difficult.

In the provinces where industrial marijuana has been legalized, it is mainly planted by farmers, and the products have not been standardized and marketized. At the same time, it is difficult to determine the content of tetrahydrocannabinol less than 0.3% (dry matter weight percentage) in product seed technology. As a result, there are limitations in the sale and recycling of industrial hemp cultivation, which is not conducive to the continuous expansion of the industrial chain.

At present, there are four major processing licenses in the industrial chain related to industrial hemp, including scientific research planting, propagation planting, industrial raw material planting and flower leaf processing. In terms of the materials submitted, the four types of permits have requirements on the basic conditions such as relevant application form, business license or unit registration certificate, management system text, relevant equipment, professional and technical personnel, etc. In particular, scientific research planting requires permission from relevant institutions, that is, approval documents issued by the project management department or higher authorities.

In addition, the period of validity of the industrial hemp planting / processing license is 2 years; the planting account and processing account should be kept for more than 3 years and subject to the verification of the public security organ. From a variety of legal provisions, it is difficult for companies to obtain planting / processing licenses, and domestic companies holding industrial hemp planting / processing licenses are scarce.

To sum up, in addition to the high-tech barriers in purification and other aspects, the application and approval of licensing policies also increase the difficulty of industrial hemp industry entry.

With the accelerating process of overseas marijuana legalization, more countries have joined the R & D and sales market of industrial and medical marijuana. Under the background of the continuous expansion of the international industrial hemp market, it has actually built a platform with long-term prospects for the companies involved in the industry or planning to carry out related business in China. At present, industrial hemp planting and processing is only legalized in Yunnan and Heilongjiang, and Jilin Province will become the third legal province.

Cannabinol, corresponding to CBD in English, is cannabinoid extracted from industrial hemp and other plants. According to data research, in 2019, the global CBD market will be 1.982 billion US dollars, and the use of CBD in medical and other applications will continue to promote market growth.

The industrial hemp industry has experienced many years of development. The breakthrough of scientific research, the continuous liberalization of policies and the enrichment of product types are the important driving forces for the development of the industry. It can be predicted that with the deepening of the research on industrial hemp, more functions are found, legally recognized in more countries, the product form is welcomed by consumers, the driving force of industry development is strong, and the future high-speed development is expected!

2.Analysis of global industrial hemp development

1. Distribution and planting area of main industrial hemp producing areas in the world

China is the largest producer and exporter of industrial hemp, providing nearly one third of the world's industrial hemp production. Other major production areas are concentrated in Canada, India, Romania (the largest production area in Europe), Russia and other places. The main products of industrial hemp are fiber, seed and flower, which can be widely used in textile, food, industrial accessories, personal care products and extraction of sesame oil CBD products.

2. Analysis on the development of overseas industrial hemp

(1) Legalization of industrial cannabis in major countries

According to the purpose and function, marijuana is mainly divided into entertainment and medical use in the world, and there are corresponding regulations on the cultivation of industrial marijuana. For recreational and medical marijuana, after the passage of the marijuana act, Canada is legal, while China and Japan are all considered illegal. In some countries, there are both legal and illegal parts. There are also corresponding laws and regulations on Legalization of industrial marijuana cultivation.

At present, there are 55 countries legalizing medical marijuana and 11 countries legalizing marijuana for entertainment. Among them, Uruguay and Canada have fully legalized marijuana and 31 countries have legalized industrial marijuana cultivation.

Chart: marijuana legalization in major industrial countries

Source: Zhongyan Puhua Industrial Research Institute

(2) Global hemp seed production

According to the data, the global hemp seed production will reach 147000 tons in 2019. Thanks to the fact that more and more countries begin to allow the cultivation of cannabis, the huge demand in its downstream market also further stimulates the enthusiasm of production.

Chart: Global hemp seed production in 2014-2019

Source: Food and Agriculture Organization of the United Nations (FAD)

(3) Global hemp fiber production (excluding China)

According to the data, the global hemp fiber production will exceed 56000 tons in 2019, and the scale of global hemp textile market will expand, which will promote the increase of global hemp fiber production.

Chart: Global hemp fiber production in 2014-2019 (excluding China)

Source: Food and Agriculture Organization of the United Nations (FAD)

(4) Analysis on the global value of CBD industry

The seed, fiber, flower and leaf of industrial hemp have economic value and can be used in textile, building materials, food and beverage, personal care and so on. According to the data of market research, the global industrial hemp market will be about $4.506 billion in 2019.

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