While hemp-derived beauty products are among the industry’s trendiest launches, the competition among brands may be driving down the price of hemp biomass.
According to a www.business.financialpost.com article, PanXchange CEO, Julie Lerner, stated that prices reached more than $40 a pound in July before the 2019 harvest. As of January 2020, “it’s trading under US$10 a pound following a quadrupling of supply from 2018 to 2019.”
Lerner was quoted saying, “Every way you slice it, the physical demand for the CBD market is much, much smaller. I’m a little surprised that retail prices have not started to come down yet. There’s so much competition.”
In the article, Lerner estimated that less than 500 acres of hemp was needed to service an estimated $95 million of sales in 2019 and about 20,000 acres of hemp were needed in total. She also estimated that approximately 115,000 acres were harvested in 2019.
For the full article, please visit www.business.financialpost.com.