How your hemp business is affected by the new data landscape

(This is an abridged version of a column that appears in the February issue of Marijuana Business Magazine.)

One of the most important uses of data in any industry is giving companies a realistic picture of supply and demand. 

When data began to reveal white-hot consumer demand for CBD products in 2019mainstream retailers from nutrition to footwear jumped on the bandwagon and began stocking CBD products on their shelves. 

Farmers also took note and began planting hemp in droves. 

Having a true sense of demand for hemp and its derivatives – notably CBD – can help prevent the kind of widespread overproduction that causes prices to crash.

Low prices for hemp biomass could be good news for processors and end users of CBD – but if hemp growers pull back after an oversupply, the response could be underproduction, causing prices to swing in the opposite direction. 

Again, this could be good news for some: Market volatility will always provide opportunity for speculators.

But for individuals trying to build a sustainable business, market stability with sustainable growth will be the key to creating lasting brands, jobs and economic success. 

That’s where publicly funded research can come into play. 

More information about the new data landscape for the hemp industry is available here.

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One comment on “How your hemp business is affected by the new data landscape
  1. Rob MacArthur on

    From what I can see with my somewhat limit view, there is discounting occurring in the CBD industry, but it is not a function of the size of the hemp crop. Rather, the lower quality products are getting killed, while the higher quality products are just fine. Trying to sell isolate at full spectrum prices is going to change. Trying to sell a 200 milligram salve for more than about $25 is also going stop. I think the beauty industry is going to be strong but the market is smaller than people think. Too many products chasing a small amount of shelf space.

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