- Legislative changes and growing demand are forecast to enable the industrial hemp sector to grow at a CAGR of 13.7 percent through 2026
- The worldwide market is expected to eclipse $13 billion within the next seven years
- Such rapid growth is expected to provide strategic expansion opportunities for innovative cultivation equipment suppliers like Sugarmade Inc.
Sugarmade Inc. (OTCQB: SGMD), a major supplier to the booming hydroponic cultivation sector, looks set to benefit from the many opportunities presented by the quickly expanding industrial hemp sector, as statistics indicate that the market is anticipated to reach $13.03 billion by 2026 from $4.63 billion in 2018, expanding at a CAGR of 13.7 percent (http://cnw.fm/73cWt).
There are several reasons why this market is forecast to expand at such a rapid rate. Hemp is a highly versatile plant that can be cultivated as a renewable source for raw materials utilized by various industries. In addition, hemp is a very lucrative rotation crop due to its ability to detoxify the soil and take in carbon dioxide.
Several subdivisions of the industrial hemp sector are anticipated to grow at a much higher rate than the average. The hemp seed segment, in particular, is expected to grow at a CAGR of 17.1 percent through 2025 – an increase in demand attributed to mounting interest in products like hemp oil and nutraceuticals (http://cnw.fm/aO5ab). Hemp seeds feature approximately 35 percent oil, which is a much-needed resource for the production of various popular products.
The textile industry is also promoting growth, since hemp fiber can be used in the manufacture of fabrics, apparel, fine textiles and accessories. Additionally, the personal care industry is contributing to propelling industrial hemp, with body care products based on hemp growing in prominence as more and more people begin to understand the potential benefits that this resource brings to the table.
Animal care, food and beverages, paper, automotive and other industries come next in the list of sectors promoting the growth of industrial hemp.
All of this growing demand is expected to provide hemp cultivation equipment suppliers with significant strategic business opportunities.
As a major hydroponics cultivation sector supplier that also provides equipment to the hemp industry, Sugarmade expects to tap into these new opportunities to cement its position and continue growing its operations. In April 2019, the company entered into an agreement with Hempistry Inc. to deliver resources for plant micropropagation. The contract is anticipated to remain ongoing as Hempistry expands its operations domestically and internationally.
Legislative changes like the passing of the federal Farm Bill at the end of 2018 have enabled companies like Sugarmade to gain traction in the industrial hemp sector. In Kentucky alone, at least 42,000 acres of hemp will be planted in the near future, Sugarmade CEO Jimmy Chan said in a news release. When all of the other hemp cultivation states are also taken into consideration, it becomes easy to see how demand for quality equipment could multiply rapidly.
Forecasts for 2019 suggest that hydroponics and hemp cultivation are two of the top five agricultural investment trends. Hydroponics techniques can be adapted to many different crop varieties, allowing for more control over the growing environment and higher yields.
For more information, visit the company’s website at www.Sugarmade.com
NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://cnw.fm/SUGAR
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