Hemp Around The World

From India to Germany and points all over the globe, the hemp industry is ramping up for major gains in the years to come.

Case in point: in November, the Food Safety and Security Authority of India (FSSAI) approved hemp seeds, hemp seed oil and seed-based flour for human consumption. As the issued notification stated, “… hemp seed, hemp seed oil and hemp seed flour shall be sold as food or used as an ingredient in a food for sale subject to conforming standards.”

“While the move signals progress from regulators and governmental approval, domestic production of industrial hemp for grain and market development in India will likely be a slow process,” noted Eric Singular, Director of Hemp Business Journal, a division of New Frontier Data. “Nevertheless, it will open opportunities for hemp grain as a plant-based protein ingredient to a market of 1.4 billion consumers.”

When considering the potential of the hemp grain market in India, New Frontier suggested in an email blast to the media that “it is necessary to focus on two categories: human consumption and animal feed. In terms of the market for human consumption, it is important to consider that India’s most widely practiced religions traditionally observe dietary laws, and the country has an aboveaverage population of vegetarian consumers.”

A recent report published by the U.S. Department of Agriculture (USDA) titled, India Emerges as a Burgeoning Market for PlantBased Meat Substitutes, posited that India’s large vegetarian population and a greater demand for nutritious foods “are fueling rapid expansion of plant-based meat substitutes in the country,” according to Singular.

Germany

Nor is India the only burgeoning market for the American hemp industry on the global business front. On the last day of November, Munich, Germany-based SynBiotic SE concluded a contribution agreement for the acquisition of 50.1% of the shares of Hanf Farm GmbH, Hemp Factory GmbH, Hempro International GmbH and MH medical hemp GmbH.

SynBiotic SE is the largest listed group in Europe in the hemp and cannabis sector, and pursues an EU-focused buy-and-build investment strategy. The group of companies covers the entire supply chain from cultivation to production and retail – basically, from field to shelf.

European Industrial Hemp Association president Daniel Kruse and industry pioneer Rafael Dulon bring a combined half century of cannabis expertise to SynBiotic SE, according to a press release. “With the four companies Hanf Farm GmbH (the largest organic hemp cultivation firm in Europe), Hempro International GmbH (the largest hemp food distributor in Central Europe, with an international supplier and customer network as well as its own profitable brands), Hemp Factory GmbH (the biggest hemp food production in Central Europe) and MH medical hemp GmbH (CBD expert and wholesaler with THC BtM approval), SynBiotic SE’s portfolio is being enriched by important infrastructures and profitable brands.”

A Global Industry

According to ResearchAndMarkets.com’s newly released The Impact Series: Industrial Hemp Report On Industrial Hemp Cultivation And Its Uses Globally, hemp manufacturing is re-emerging as a global industry, “having historically been a major traditional industry in many parts of the world. The factors driving this re-emergence are many, and include various commercial and ecological considerations.”

The fastest growing segment in this regenerated industry has been textiles, the company said in a release. “It is unsurprising given hemp’s long history of use as rope, sailcloth, clothes, etc. However, hemp is also seeing significant use in other industries, and is the subject of exciting research and development activity in yet more, including; cosmetics, food and beverages, livestock feed, paper, construction materials, bioplastics/ composites, biofuels and energy storage.”

The research firm noted that activity in hemp is growing around the globe:

• European countries like France and the Netherlands have long-established companies working within a regional ecosystem, which is now seeing both demand and competition from new European operators, as well as emerging players in China and North America.

• Chinese hemp cultivation has now surpassed any other country, making China a major global supplier.

• The United States has greenlit the entire industry to a large extent with the 2018 Farm Bill, and is taking lessons from Canada, which already has a well-established industry.

• Many Latin American countries, as well as Australia and New Zealand, are seeing prosperous early-stage markets.

• African nations are laying foundations for major hemp industries based on their advantageous climates and pre-existing local expertise.

The potential for hemp’s application in industry in ways that support the three pillars of sustainability -- social, environmental and economic -- is now being embraced, the research firm added. “It is a crop with soil-regenerating properties, it produces carbonnegative raw materials, and it is multi-purpose. Each part of the plant has the potential for use. This presents socially responsible business opportunities, and while it is not a panacea for all sustainability issues, it offers economic opportunities based on ‘green’ alternatives to conventional products.”