Legalised cannabis represents a huge opportunity on a global scale, with new market gaps presenting themselves, some of which are within already established sectors. The specific example of this we will take today comes from fashion, which for years has seemed an untouchable industry, with exclusivity and prestige inhibiting many new brands with their own production methods from making a name for themselves. However, with the threat of climate change and a subsequent need to act together in order to prevent irreversible damage, the market has had more gaps for opportunity than ever, with hemp, deriving from the low-THC content cannabis plant species, leading the way in terms of efficacy and viability. As with all of our content, context is key, therefore, before we investigate why hemp materials and fibres are such a good alternative, it is important to understand the broader market and how growth is being sustained.
If we first take a general overview of industrial hemp, a market size of US$4.71 billion in 2019 demonstrates an already large sector, though this is not to say that the projections do not forecast increased growth and that it has already reached its limit. In fact, it is quite the opposite, between last year (2020) and 2027, it is predicted that there will be a compound annual growth rate of 15.8%, and with increased legislative facilitation of hemp cultivation, who is to say this number could not rise even higher. Now to take a slightly more specific look at the details surrounding textiles and hemp-based materials, this market is also promising. While we have a slightly different forecast period for this sub-market, there is a large overlap, so, between 2021 and 2028, hemp clothing is expected to see a compound annual growth rate of 49.9%, insinuating that this area is one of the driving forces of industrial hemp growth in general, perhaps fuelled by an increased drive for global sustainability, and also providing insight into an opportunity for potentially lucrative investments.
With this established, we can now get into the reasons why the environmentally friendly clothing industry could be the future:
1. Hemp grows fast. The cultivation of cannabis plants can be undertaken far more frequently than other traditional crops from which clothing materials would be derived.
2. It is environmentally friendly. Arguably the most important point of them all, requiring the use of no chemical assistance (pesticides/herbicides/fertilisers), hemp is grown naturally at no cost to local water supplies. Speaking of water, it is also eco-friendly due to the relative lack of it required to grow the crops compared to cotton.
3. It is economical. Another important characteristic of growing hemp is the yield. The best way to represent this is, similarly to the market projection, to let the numbers do the talking. Per acre, hemp will produce roughly 680kg, while cotton would produce 227kg, almost two thirds greater in the same land area!
The material used to make the clothing is spun from the fibres of the plant and is able to be done mechanically without the use of chemicals in this stage either, continuing the environmentally friendly qualities of the use of hemp in fashion, and making it an industry to certainly look into this year.
So, if you are interested in finding out more, get in touch with us today! At Creimerman, we are a team of global citizens, working with each client and providing a tailor-made service in order to help make their cross-border ventures a success, and we would love you to be the next.