TraceGains Solutions
Hemp Industry

CBD has Become Big Business and the Stakes are High

For years, hemp and cannabidiol – better known as CBD – remained relegated to the fringes of the CPG market. But they broke into the mainstream in 2018, in a big way, growing into a $390 million market. Industry analysts expect that growth to continue unabated, with some estimates predicting CBDs can become a $1.3 billion industry by 2022 – a combined annual growth rate of more than 27 percent.

Hemp has a long history of legal challenges in the United States. In the 1800s, hemp could be found in most paper and textile products, but its popularity waned when cotton proved easier and cheaper to process. The Marijuana Tax Act of 1937 strictly regulated the cultivation and sale of all cannabis varieties and the Controlled Substances Act of 1970 classified all forms of cannabis, including hemp, as a Schedule I drug. Even with dramatic growth and new laws, there are several remaining challenges facing the hemp industry.


Negative Public Perception

The biggest challenge faced by anyone in the hemp industry is the negative perception of CBD products among the public. Generally, people believe that hemp products are the same as marijuana, which remains illegal in many states. There’s a misconception that because both hemp and marijuana come from the same cannabis family, CBD products cause highs like marijuana.

Bad Actors

The popularity and booming growth of CBD, coupled with hemp’s illegal past, has attracted bad actors and cutthroat activity. There is a wild west “gold rush” mentality that increases risk. For the many companies that haven’t yet matured to complete professional standards, it’s critical to know the facts and to work with knowledgeable good actors to avoid complicated and costly legal matters.

Regulatory Uncertainty

Since the 2018 Farm Bill became law, food and supplement companies have been working overtime to find out what it means for them, their products, and their businesses. State attorneys general are enforcing new laws and regulations on farming, extraction, manufacturing, and transportation. This leaves companies in the CBD business with a patchwork of state laws to navigate.

Why Hemp Matters

Used to treat a wide variety of conditions and symptoms, hemp-derived products have shown surprising efficacy. They offer therapeutic benefits without the high-generating THC. The benefits of hemp have been documented in dozens of published research studies.

Hemp Benefits:

· Hemp seeds are a good source of protein and fibers, both soluble and insoluble for digestive health.
· Arginine and GLA content in hemp seeds can reduce the risk of heart disease.
· Omega-3 and Omega-6 content fatty acids help improve skin, acne, and even eczema.
· CBD supplements can treat conditions from anxiety, chronic pain to discomfort associated with cancer treatments.
· CBD has been shown to reduce and even stop childhood epilepsy syndromes, such as Dravet and Lennox-Gastaut syndromes (LGS).

TraceGains Can Help

Smart business leaders in the hemp industry know that professional standards matter. With TraceGains solutions, businesses can achieve the supply chain transparency needed to demonstrate compliance and satisfy customer needs. Offering a collaborative platform that connects teams, streamlines workflows, and digitizes documentation, you can plug into a global network from anywhere in the supply chain. The system automates and tracks supply chain partner information and document exchange, with key product details and compliance documentation available with the click of a button. In addition, a network of Hemp experts can help you navigate legal and regulatory issues with confidence.


Attract New Business with Market Hub

Market Hub allows CBD and hemp suppliers to get their products in front of potential customers in the food and CPG industry. Leveraging the standardized hemp form built by our team of experts, suppliers use PostOnce® to make it instantly available to everyone in TraceGains Network. In a fast-moving market, it can help suppliers and manufacturers get new products to customers in record time.


Take advantage of the industry’s largest network which includes one third of the Top 100 food and beverage companies.

Improve Customer

Provides a centralized platform to increase collaboration and encourage transparency.


Suppliers can submit information, documentation, and online forms to all customers at once.


Gain Momentum with Industry Standards

For the hemp business model to continue to expand, industry standards are needed. TraceGains has long led the charge for defining standards in the food and CPG industry by creating standardized documentation that allows suppliers to satisfy compliance requirements for multiple customers by completing and posting each document one time in TraceGains Network. By working closely with experts in the hemp industry, TraceGains has created a standardized document for hemp suppliers that includes elements such as: THC potency, pesticides, microbes, residual solvents, heavy metal content, and several more items. As the TraceGains hemp community grows, so, too, will the depth and breadth of the document and its impact on industry standards.


"TraceGains has a long history of protecting consumers, manufacturers, and distributors by ensuring the highest level of transparency in safety and compliance. We reviewed several options, but only TraceGains gives manufacturers and distributors the ability to validate CBD providers are fully compliant with the 2018 Farm Bill.”

- Eric Wang, Managing Director



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