Hemp CBD oversupply has farmers questioning their 2021 strategy
Natural Products Insider
Here’s a numbers game for you. Guess how many acres of hemp the entire CBD business world needs to supply its product to America? Are you sitting down? You might want to pour an entire tincture bottle under your tongue to prepare to hear this.
Here’s a hint: Charlotte’s Web—the No. 1 brand in the hemp CBD business—reported almost $95 million in revenues in 2019. If you assume 1,500 mg CBD per tincture bottle, how many acres of hemp does the company need to grow?
During the crazy boom planting year of 2019, Charlotte’s Web reportedly grew 862 acres. Did it need that much?
“For $95 million revenues for Charlotte’s Web, you need only 57 acres,” said Julie Lerner, CEO of PanXchange, an OTC trading platform for commodities that provides baseline prices for hemp. “Charlotte’s Web alone has an inventory build of 30,000 kilos of distillate. That’s a massive number of inventory.”