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2021 Industrial Hemp Industry Development Report

After the turmoil of the Industrial Hemp Industry in which the capital market 2019, it fell into silence for a while. Many people say whether industrial hemp is cold. It is not, just like the burst of the Internet bubble in the United States, the five giants of Nasdaq today can stand upright. When everyone can’t see clearly, they can only scramble around the concept. 

Only after landing the competition, can we see the real trend and pattern. The same is true for industrial hemp. From the perspective of speculators, the concept seems to have stalled, but from the perspective of investors, it is a better time. Why do you say that? Today we are going to stroke.

Rapid Growth In The International Market.

As we all know, the legalization of cannabis in Canada and the United States once caused a sensation in the world. Industrial hemp CBD is in full swing in North America, and hemp has become their “free grass.” Tianfeng Securities Research reported that the industrial hemp extract CBD has become a star product in the plant extraction industry. 

Take the United States as an example, he is in a stage of rapid development. In 2018, it became the No. 1 selling product among natural herbal supplements. According to Bright field data, the US CBD market grew by 700% in 2019. Looking at the country, the momentum of industrial hemp this year is not as good as last year, because the tree cannot grow to the sky, and it is better to return to an objective view of the development of an industry rationally. 

Many investment institutions are also holding a wait-and-see attitude this year because this year there is an important node-the United Nations vote on WHO recommendations. Will the UN’s control level on CBD be lowered? I will vote at the end of this year. Of course, many things are uncertain in this age of various withdrawals in the United States. 

Regardless of the results of the WHO’s voting on the proposed scope of control of cannabinoid CBD, the use of CBD for medical and health has emerged in many countries and regions around the world and has received clinical trials support and market development in developed countries. However, the degree of policy liberalization directly affects the scale of industrial hemp, and if the CBD will be legalized at the international level. 

It will inevitably bring about a big explosion in this field. Various signs have shown that by the end of this year, the international supervision of industrial hemp is expected to develop in a clearer and more positive direction.

Domestic Status-National Level

Without the concept of flying in the sky and bubbles, industrial hemp is closer to us. Nowadays, the policy is steadily advancing, the low-key layout of enterprises, and the attitudes of the government and the public are all tending to recognize industrial hemp and CBD, and tend to regulate and orderly develop the Industrial hemp industry with endless potential.

On April 1, 2019, Liu Yuejin, deputy director of the National Narcotics Control Commission and the counter-terrorism commissioner of the Ministry of Public Security, stated at a press conference that the production, cultivation, storage, and transportation of industrial hemp has strict management procedures and total volume control in our country.

The above-mentioned documents and statements indicate that the National Narcotics Control Commission has not prohibited the development and utilization of industrial hemp as a cash crop; at the same time, the state will also consider how to regulate the industrial hemp industry and promote a healthy and orderly development of this industry.

At the third session of the 13th CPPCC National Committee in 2020, Zhao Yusen, member of the Standing Committee of the CPPCC National Committee, vice chairman of the Heilongjiang Provincial Committee of the Chinese People’s Political Consultative Conference, and chairman of the Heilongjiang Provincial Party Committee of the Democratic League submitted a proposal for the development of the industrial hemp industry-playing a leading role in technological innovation to promote industrial hemp industry Speed ​​up development. From regulatory documents to proposals from the two sessions, this marks the rise of industrial hemp development to the national level.

Provincial-Level Policies Are Showing Optimism

Heilongjiang: 

Change the processing of industrial hemp mosaic from 19 years of prohibition to strict management, from the past filing system to a licensing system.

Jilin Province: 

The “Measures for the Identification of Industrial Hemp Varieties in Jilin Province” were implemented on January 1, 2020.

Other Provinces: 

To regulate the industrial hemp industry in the province, Anhui Province is also preparing to amend the province’s anti-drug regulations to clearly distinguish drug hemp from industrial hemp. Inner Mongolia, Shanxi, etc. have begun to consider distinguishing drug cannabis and industrial cannabis from the legislative level. 

Yunnan Province: 

The province is strengthening overall planning, departmental linkage, division of labor and cooperation, and standardized management to better serve the anti-drug work and the development of the industrial hemp industry. 

Industrial hemp is still regarded as a major driver for the development of Yunnan and the local economy, and an industrial hemp industrial park has even been established.

Enterprise Level-Low-Key Layout, Actively Rush To Raise Funds

In 2020, due to the new coronavirus affecting the entire economy, the media and the public’s sight, investors have been greatly disrupted.

But many companies are laying low-key. Due to the rapid advancement of foreign policies and wider market liberalization, the foreign industrial hemp industry has developed rapidly. 

Domestic institutions have chosen to deploy overseas, hoarding large amounts of resources by opening up the industrial chain and implementing application-side scene conversions, waiting for opportunities for domestic development.

At present, many domestic companies have deepened their overseas markets through cooperation with overseas companies, setting up joint ventures, and directly providing products and services to overseas companies.

In the first half of 2020, there are about 44 companies involved in the concept of industrial hemp among listed companies. 

Renhe Pharmaceutical Invests 1 Billion In Industrial Hemp

Chenguang Biotechnology obtained the Industrial Hemp Planting License of Yunnan Province and Industrial Hemp Processing License.

Fuan Pharmaceutical completes the acquisition of the U.S. industrial hemp project.

Hann Star’s production base is capped, and industrial hemp projects speed up.

Zixin Pharmaceutical sets up a new subsidiary to promote the industrial hemp project.

Meiyingsen has grown more than 1,000 acres of industrial hemp. 

The industrial hemp planting license obtained by Chengzhi shared that

Industrial hemp investment has evolved from the concept introduction stage of the capital market to the product application layout stage.

In the future, the investment direction of the domestic industrial hemp industry will change, and it will shift from the initial license to the final industrial layout. Whoever does a good job of synergy with downstream industries can occupy the market. 

It has only been three short years since the rise of the concept of the industrial hemp industry. The entire industry is still in the initial stage of cultivation. The growth of the market takes time, and continuous education and training are needed. The recent events have continuously promoted the firm commitment of these “industrial hemp believers” who have succeeded.

The Sentiment Of Marijuana Investment Returns Rationally, The Trend Is Determined And The Low-Key Layout Advances.

The Yunnan government has begun to pilot the use of blockchain technology to solve the overall ecological regulatory problems of industrial hemp, and to make technical and practical preparations for the further liberalization of policies. 

Many listed companies have moved overseas to participate in the application and sales of CBD products in advance. Further, let go for experience and technical preparation. The seemingly calm field of industrial hemp is an undercurrent and ready to go.

Most companies are waiting for policy catalysis. Seeds and product application scenarios have attracted the attention of some companies. Companies on the consumer side are also cautious. At present, they mainly focus on simple skincare products, such as CBD oil. 

The oral care solution is a market trial. The only CBD, Ru Ma Fanxu, has conducted initial market exploration and has also received market recognition and positive feedback. At present, a small number of A to B companies on the sales side still focus on exports, but they have begun to build momentum and publicity in the country, but they lack brand awareness and have not formed a large-scale market impact.

In short, we believe that industrial hemp CBD will surely rise again in the consumer sector and become a hot spot in the market again.

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