The hemp market thrives despite past stigma, but more needs to be done

Hemp, known as ‘bhang’ in India, has been cultivated since 5000-4000 BCE. Not only did our forefathers use hemp for its pain-relieving and antispasmodic qualities, but they also used it as a building material to create famous structures like the Ellora caves. 

With such a rich background, India has an inherent edge in the hemp business. However, hemp and its products continue to meet scepticism, needing a combined effort between the corporate and public sectors, as well as social engagement, to dispel myths and harness hemp’s true potential.

Uses and applications

Contrary to popular belief, which links hemp to recreational drugs, the truth is quite different. Hemp seed oil extracted from hemp seeds is notable for its high nutritional value and wide range of health advantages, such as improved heart health and skin conditions. All components of the hemp plant, including the seeds, oils, and powders, are rich in nutrients, making them adaptable for a wide range of product compositions. 

Additionally, changing lifestyles and the rise in chronic illnesses have increased consumer demand for superfoods like hemp-based products, which have been shown to improve heart function, lower anxiety, and control insulin levels. Growing veganism, a preference for environmentally friendly products, and the expanding range of applications for hemp-based food products all contribute to the growth trajectory of these products.

Hemp has many uses in many industries, so its benefits go beyond medicine. One material that works well for shipping ropes is hemp fibre, which is strong and resistant to saltwater. 

Hemp also provides safer, more environmentally friendly substitutes for harmful substances. The manufacturing of bioplastics from hemp shives, also known as hurds, is especially beneficial since it offers a biodegradable substitute for plastics derived from fossil fuels that are harmful to the environment. 

With its strength and quality, hemp can replace non-biodegradable plastics in various products, from food packaging to single-use cutlery, all without negatively affecting the environment. The fact that hemp paper and textiles are becoming increasingly popular worldwide further highlights this trend.

The main challenges

Even though hemp has a plethora of scientifically proven health advantages, its reputation has been damaged by false beliefs, mostly because it was formerly mistakenly classified as a psychotropic plant. Hemp was once mainly considered a recreational substance, prized only for its supposed capacity to promote relaxation. Regrettably, this obscured the plant’s potential for therapeutic use, making its advantages primarily unknown.

Despite being from the Cannabis sativa plant, hemp seeds don’t have any psychoactive properties. Still, a sizeable section of the populace maintains their scepticism even in the face of scientific facts refuting these beliefs.

However, since 2021, when hemp was officially recognised as a food item by the Food Safety and Standards Authority of India, the Indian market has shown improvement. Nonetheless, breaking past the profoundly ingrained stigma surrounding hemp products is a significant challenge.

The lack of information about hemp’s non-psychoactive nature continues to stifle industry expansion in India. 

According to a report by Verified Market Research, the industrial hemp industry was valued at $8.10 billion in 2022 and is projected to reach $23.20 billion by the end of the forecast period, growing at a compound annual growth rate of 14.05%. Despite this, India’s reluctance to embrace hemp’s potential has hampered local market progress.

There is still a lot of work to be done to fully realise the potential of the hemp market in India, even with the industry operators’ determined efforts to educate the public and debunk the misunderstanding surrounding the plant. Raising public knowledge and promoting greater acceptability of hemp-based products across the nation will depend heavily on legislative backing, consumer education programmes, and hemp industry expansion.

The future

By 2027, there could be 500 hemp-related businesses operating worldwide, which means the hemp industry is expected to experience exponential growth. One of the most prominent developments propelling this growth is the hemp product ecommerce industry’s rapid expansion.

Hemp-related firms have seen a sharp increase in online sales in recent years, and several have seen incredible development in their online stores. Businesses that sell hemp have a great chance to expand their customer base and take advantage of the increasing demand for their products from consumers, thanks to the recent surge in ecommerce.

One of the primary reasons for the success of hemp ecommerce companies is the convenience and accessibility they provide to customers. With a few clicks, customers can browse a wide choice of hemp products, from CBD oils and supplements to clothes and beauty products, all from the comfort of their homes. This accessibility has proven incredibly enticing to consumers looking for ecological and sustainable alternatives in their shopping decisions.

Furthermore, hemp companies can access foreign markets and grow clientele across national borders thanks to ecommerce’s worldwide reach. Businesses can now engage with suppliers, distributors and partners globally through digital platforms, creating new opportunities for growth and cooperation. The hemp industry has a bright future imprinting in the digital economy, with more businesses joining the market and embracing digital innovation.

The author is Director, Cannarma, a company focused on R&D of medicinal cannabis-based medicines, cosmetics, nutraceuticals, and supplementary products.