Hemp Market Opportunities

Hemp Market Overview

The hemp industry offers multiple revenue streams across various sectors. Understanding market dynamics is crucial for making informed decisions about which type of hemp to grow and how to market your crop.

22.4%
Projected CAGR for the global industrial hemp market through 2029
$15B
Projected global hemp market value by 2027
50+
Different industrial applications for hemp fiber, grain, and CBD
Hemp Applications Infographic

Market Segments

CBD Market Overview

The CBD market has established itself as a significant segment of the hemp industry, though it has stabilized after the initial boom following the 2018 Farm Bill.

Current Status

Established but stabilizing after initial boom, with increasing focus on quality and consistency

Products

Tinctures, topicals, capsules, pet products, beverages, edibles, smokable flower

Ohio Processors

  • Ohio CBD Extractors (Columbus)
  • Buckeye Botanicals (Cincinnati)
  • Great Lakes Hemp Processing (Cleveland)
  • Central Ohio Extraction (Newark)

Pricing Trends

$0.75-3.00 per % CBD per pound (dependent on quality, consistency, and contract terms)

Market Outlook

Consolidating with focus on quality, consistency, and specialty applications. Premium prices available for certified organic, locally grown, and specialty cannabinoid profiles.

CBD Market Trends Chart

Fiber Market Overview

The fiber market is showing strong growth potential as more industries incorporate sustainable materials into manufacturing processes.

Current Status

Growing with increasing industrial applications and infrastructure development

Products

Textiles, building materials, paper, biocomposites, insulation, automotive components

Ohio Processors

  • Midwest Hemp Fiber Co. (Dayton)
  • Ohio Sustainable Materials (Toledo)
  • Heartland Hemp Processing (Bowling Green)

Pricing Trends

$75-200 per ton (dependent on quality, consistency, and contract terms)

Market Outlook

Strong growth projected as manufacturing capacity expands and more industries adopt sustainable materials. Long-term contracts becoming more available.

Fiber Market Trends Chart

Grain Market Overview

The hemp grain market is well-established with steady demand for food and feed applications.

Current Status

Established food and feed markets with consistent demand

Products

Food (oil, protein powder, hemp hearts), animal feed, brewing ingredients

Ohio Processors

  • Ohio Grain Processors (Columbus)
  • Heartland Hemp Foods (Cleveland)
  • Buckeye Natural Foods (Cincinnati)

Pricing Trends

$0.50-1.00 per pound (dependent on quality, protein content, and contract terms)

Market Outlook

Steady growth with increased consumer awareness and incorporation into mainstream food products. Organic certification can significantly increase market value.

Grain Market Trends Chart

Finding Buyers

Processor Relationships

Establishing relationships with processors is crucial for successful hemp marketing. Here are some strategies for connecting with potential buyers:

  • Contract Growing: Secure a purchase agreement before planting, especially for beginners
  • Relationship Building: Establish connections well before planting season through industry events and association networks
  • Quality Specifications: Understand buyer requirements for testing, moisture content, and other quality factors
  • Vertical Integration: Consider developing processing capabilities to capture more of the value chain

Member Benefit

OHGA members have access to our processor network directory, which includes detailed contact information and purchasing requirements for processors across the state.

Direct Marketing Strategies

For value-added hemp products, direct marketing can provide higher margins and closer customer relationships:

  • Farmers Markets: Sell processed products directly to consumers
  • Online Sales: Develop e-commerce capabilities for broader reach
  • Cooperative Marketing: Join forces with other growers to reach minimum volume requirements
  • Specialty Markets: Target organic, local, or sustainable market segments
  • Brand Development: Create a compelling story and consistent branding for your farm and products

Regulatory Note

Direct marketing of CBD products requires compliance with labeling, testing, and marketing regulations. Consult with legal experts before making claims about your products.

Wholesale Opportunities

Beyond direct processor relationships, several other channels exist for marketing hemp:

Broker Relationships

Hemp brokers can connect growers with buyers across the country, though they typically take a commission on sales.

Interstate Commerce

With proper documentation and testing, hemp can be transported across state lines to reach processors in neighboring states.

Export Markets

International markets are opening for US hemp products, though they require additional certifications and export documentation.

Producer Cooperatives

Joining or forming a cooperative can increase bargaining power and access to markets for small and medium-sized producers.

Value-Added Opportunities

Increasing the value of your hemp crop can significantly improve profitability. Consider these strategies for capturing more value from your production:

On-Farm Processing

Investing in processing equipment can significantly increase your hemp crop's value. Options include:

  • Drying and curing facilities for CBD hemp
  • Initial decorticating equipment for fiber
  • Cleaning and dehulling equipment for grain
  • Extraction systems for CBD production

Processing allows you to sell higher-value intermediate products and gives you more marketing flexibility.

Cooperative Approaches

Joining forces with other farmers can create economies of scale in processing and marketing:

  • Shared equipment and facilities
  • Collective marketing for stronger bargaining power
  • Bulk purchasing of inputs
  • Knowledge sharing and collective problem-solving

The Ohio Hemp Growers Association can help connect you with potential cooperative partners in your region.

Diversification Strategies

Reducing risk and capturing multiple market opportunities:

  • Growing multiple hemp varieties
  • Integration with existing farm operations
  • Developing multiple product lines
  • Agritourism opportunities featuring hemp

Diversification can help weather market fluctuations and seasonal challenges.

Success Story: Green Fields Farm

Green Fields Farm

Green Fields Farm in Knox County started with 5 acres of CBD hemp in 2020. After experiencing challenges with finding reliable buyers, they invested in drying infrastructure and basic extraction equipment. By 2023, they had developed their own line of CBD products sold through local retailers and online.

They've since expanded to include 20 acres of fiber hemp, partnering with three neighboring farms to purchase a decorticator that processes all their crops. By vertically integrating and forming cooperative relationships, they've increased their per-acre revenue by over 60%.

Read Full Case Study

Marketing Resources

The Ohio Hemp Growers Association provides several resources to help members successfully market their hemp crops:

Buyer Directory

Our member-exclusive directory includes processors, manufacturers, and retailers seeking Ohio-grown hemp.

Access Directory (Members)

Contract Templates

Sample growing contracts and agreements to help establish clear terms with buyers.

View Templates (Members)

Marketing Workshops

Regular training sessions on effective hemp marketing strategies and business development.

View Schedule

Processor Meet-ups

Structured networking events connecting growers with potential buyers.

Upcoming Events

Need Marketing Assistance?

Our team can provide personalized guidance on marketing your hemp crop. Contact us to discuss your specific situation and explore potential connections in your target market.

Contact Us