Europe is a different hemp market, there have different rules with North America. This morning so many sounds are on one thing: The European Parliament allowed THC levels in industrial hemp crops to increase from 0.2% to 0.3%. In addition, if farmers plant those hemp varieties included in the EU catalog with a maximum THC level of 0.3%, they will be able to receive financial support. This decision is part of the reform of the Common Agricultural Policy (CAP), which will come into force in 2023.
Why this thing can get so many attentions?
In a press release, Lorenza Romanese, CEO of EIHA, argued, "This is a small step that reflects that EU legislators are closer to fully recognizing and acknowledging the existence of a legitimate European hemp sector."
Currently, the EU seed catalog includes only 69 hemp varieties. Now, thanks to the THC limit being increased by 0.1%, the number of varieties available will grow to more than 500.
Growers will be able to "harvest more vital specimens, develop better fibers, CBD flowers and stalks," Forbes reported.
Daniel Kruse, president of EHIA, said: "This is a great day for the hemp sector and another step towards a greener future for Europe. However, when compared to other countries in the world, 0.3% is still a low limit; for example, Switzerland, in the heart of Europe, has a higher figure, and other EU countries are already working with higher limits as well."
It is also important to note that the THC level is essential for CBD production: in industrial hemp crops, CBD increases proportionally to THC. Therefore, if the THC level is low, the resulting CBD product may not be as effective.
According to VERIFIED MARKET RESEARCH, the global MARKET size of hemp extract is valued at us $5.03 billion in 2020 and is expected to reach US $23.64 billion by 2028, with a CAGR of 21.22% from 2021 to 2028. According to statistics, the entire European legal cannabis market was worth around $3 trillion in 2019. As more European countries legalize marijuana in the coming years, market revenue is expected to rise to nearly $25 trillion by 2024.
This new decision will greatly stimulate the European industrial hemp market. And the statistics will climb to a new level on next annual report.
