After some fun early years, Colorado's hemp industry started stumbling in 2019. Fewer farmers are growing it now, according to the Colorado Department of Agriculture, and big companies have showed less interest as the federal government continues dragging its tail regarding CBD, a non-intoxicating compound found in cannabis that's become a popular wellness supplement.
All in all, I feel 2021 was a reflex year, but all is not lost. Technologies and innovation for this market are pushing the needle forward. I expect to see improved efficiencies and more innovative uses coming forth that will reduce production costs and reinvigorate more of the plant to be used across multiple markets.
COVID will continue to impact this market for at least the next twelve to eighteen months. The pandemic exposed many weaknesses in our system of doing business, which includes the hemp market. Some prominent examples of these weaknesses that many in the hemp industry still face include workforce shortages, transportation scarcity and supply-chain disruptions globally.
For now, I see CBD and other isolated cannabinoids continuing to be the drivers. In states that don’t have strong policies around hemp, there will be a continuation of production of these products while they can. It is encouraging to see an increase in food products made from hemp becoming more mainstream. The innovations coming forth from the fiber side of the industry are even more exciting. Seeing major brands commit to using hemp in their production is a great leap forward.