7 Major Industries Disrupted by Cannabis And CBD
The sudden emergence of cannabis and CBD has sent shock waves throughout the rest of the business world. Here are the most affected industries.
It’s fair to say that the recent legalization for cannabis and introduction of CBD products has made a large impact on society at large. Many families do not enjoy alternative medications for healthy loved ones, and often these alternatives are far more effective. Hemp has also become legal all over the nation, and their special properties are leading to the introduction of new revolutionary products.
On the other hand, more conservative older people fear the prospect of young adults becoming ensnared by the “druggie” lifestyle. They’re also concerned that such a change can lead to higher crime levels.
But the impact of cannabis and CBD has also profoundly affected even other industries as well. Some are due to the changing and often murky legal landscape, while other changes are attributed to new technologies developed in the cannabis industry.
Here are some of the industries undergoing major changes due to cannabis and CBD:
- Packaging. Having more products in large volumes means more need for packaging materials. The packing industry for cannabis products is estimated to reach a value of $5 billion by 2026.
- Textile industry. Hemp can now be used as an alternative to wool, cotton, and denim. Since hemp is relatively new and it comes with a rather anti-authoritarian vibe, it can be very trendy especially for young adults.
- Legal industry. With a new industry with different regulations in different states, along with the still-standing federal ban cannabis, we now have lawyers starting to focus their practice on legal matters related to the cannabis business.
- Biodiesel. Right now, soybeans are the most common source of biodiesel. But that’s about to change, as an acre of hemp can produce nearly 4 times as much oil as an acre of soybeans.
- Banking. Many of the larger banks are inherently conservative in outlook. So they don’t do business with cannabis companies due to the federal ban. It’s too much of a risk for these banks. But now smaller local banks are taking up the slack, letting cannabis companies set up business accounts and perhaps even offering business loans.
- Paper manufacturing. These manufacturers can cut down on costs with industrial hemp. An acre of industrial hemp can produce 4 times more paper than an acre of trees. That can also help paper manufacturers gain a more eco-friendly image.
- Construction. The construction industry can now use “hempcrete” which is the inner core of the hemp mixed with a lime-based binder. This is an insulating material that weighs 8 times lighter than regular concrete. Now that the hemp doesn’t have to be imported from abroad, its use can cut down on construction costs. Hempcrete is very easy to move from one spot to another.
Many more industries are poised to change, as the hemp industry is even now trying to find out how hemp can be used as an alternative to plastic. Once that happens, the whole world will certainly be disrupted!
Also, check out How California’s MedMen Is a Leader In The Legal Marijuana Gold Rush