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Hemp Versus Marijuana • the Health Case for Hemp

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Hemp Versus Marijuana • the Health Case for Hemp Trends In Hemp Is hemp the next "superfood" superstar? Tom Vierhile, Innovation Insights Director, Datamonitor Consumer, April 9, 2015 Datamonitor Consumer: consumer and innovation experts Agenda: Trends in Hemp: Is hemp the next "superfood" superstar? • Just what is hemp? • History • Hemp versus marijuana • The health case for hemp • The hemp market and hemp innovation • Market size and growth • Key innovations, new trends, opportunities • Key take-outs Just what is hemp? • Hemp comes from the Cannabis sativa L. plant. • Hemp is from the same plant species (Cannabis sativa) as marijuana, but has a negligible amount of tetrahydrocannabinol (THC) compared to marijuana. • THC is the ingredient that produces a psychoactive effect. • Hemp and marijuana are genetically different and are bred differently. • Hemp is often called "industrial hemp" or "agricultural hemp" and comes in specific varieties for oilseed production (hemp seeds) or for fiber production. Source: ManitobaHarvest.com, CannVest.com. Photo courtesy of Shutterstock.com. 5 marketplace.supplysideshow.com Nearly half of US states The long, tortured history of hemp have legalized hemp growing 1600s-1800s Hemp ban Rebirth for research. • Hemp planted lifted in 1942 • 1998: Canada in 1606 in • Hemp ban OKs industrial North America. lifted during hemp. • Hemp widely WWII. • 2004: Appeals grown for • US launches court strikes paper, textiles, "Hemp for down US DEA rope. Victory" effort. regulations. Hemp made The Controlled illegal in 1937 Substances Act • Marihuana • Hemp banned Tax Act: hemp again in 1957. = "narcotic • Controlled drug." Substances • Hemp, Act of 1970 = marijuana federal drug treated same. control. Source: "Hemp History," ManitobaHarvest.com; "Did You Know – Hemp History Week," HempHistoryWeek.com. Photos courtesy of Shutterstock; Historylink.org. 6 marketplace.supplysideshow.com Hemp versus marijuana: differences • The primary deliverable for • Leaves and buds are the primary "industrial hemp" is hemp seed. deliverables for marijuana. • The rest of the "industrial hemp" • Marijuana has high levels of THC plant is generally used for animal – from 5% to as high as 30% for bedding – much like hay is.1 different strains of the plant.2 • "Food hemp" plants are generally • The THC content of hemp is different from "textile hemp" plants. generally at or below 0.3%.2 Source: [1] Interview with Danny Scodeller, Manitoba Harvest at Natural Products Expo West, Anaheim, California, March 7, 2015; [2] "5 Differences Between Hemp and Marijuana," LeafScience.com, September 16, 2014. Photos courtesy of Shutterstock. 7 marketplace.supplysideshow.com More differences: hemp versus marijuana • Marijuana comes from female flowering plants; hemp plants are primarily male. • Hemp is unlikely to produce a high content of THC if cross- pollinated with marijuana. • Hemp can actually ruin marijuana crops by lowering the THC content of the latter.1 • Industrial hemp needs no pesticides, puts Oilseed hemp field. In Canada, oilseed hemp must have nitrogen back into soil, 2 a THC level "in field" of less than 0.3%. and absorbs CO2. Source: [1] "Hemp vs. Marijuana: Hemp Legislation Poses Complex Issues For All Involved," Kentucky.com, February 9, 2013; [2] Interview with Danny Scodeller, Manitoba Harvest at Natural Products Expo West, Anaheim, California, March 7, 2015. Photo courtesy of Aocs.org. 8 marketplace.supplysideshow.com The health case for hemp and hemp seed • Hemp contains The shelled, inner portion of hemp more protein by Rich in weight than beef, seeds contains edible "hemp nuts." complete protein fish, peanuts, chicken, or almonds. • Hemp has a near ideal 4:1 ratio of Ideal ratio omega fatty acids, of omega- and also has rare 6 to gamma linoleic acid omega-3 (GLA) and stearidonic acid (SDA). • Hemp contains Packed cholesterol-fighting with other phytosterols, Hemp seed can be eaten whole, hulled, nutrients magnesium, fiber, ground, or pressed into edible oil. iron, and more. Source: "Discover Hemp Foods," ManitobaHarvest.com, "Will Hemp Replace Fish as the King of Omega 3?," FoodNavitagor-Asia.com. Photo courtesy of Shutterstock. 9 marketplace.supplysideshow.com The taste case for hemp seed The light and nutty flavor of hemp seeds is well suited to snacks and snack applications, other types of food products, and cooking oils. Just Hemp Foods is pitching hemp seeds and hemp oil as new ways to add flavor to recipes. Source: Images courtesy of JustHempFoods.com. 10 marketplace.supplysideshow.com Hemp seed is a protein powerhouse Comparison of dietary proteins by source 40% 35.0% 35.0% 35% 30% 27.1% 26.0% 25.8% 25% 23.5% 23.5% 20% 18.3% 15% 10% 8.0% 5% 3.3% Protein as % of total weight 0%Industrial hemp grows differently than THC- containing cannabis and looks more like bamboo, growing to a height of 10 to 15 feet before harvest. Source: ManitobaHarvest.com.; Image courtesy of Shutterstock. 11 marketplace.supplysideshow.com Hemp is a complete protein source Complete protein = a food that has all eight essential amino acids The body requires protein to thrive. Proteins are made up of combinations of up to 20 different amino acids. Amino acids that cannot be made by the body are considered to be "essential amino acids" in that it is essential that they are provided by the diet. Hemp has a protein structure of Hemp seeds contain all eight essential 66% edestin and 33% albumin. amino acids, and has them in the right Both are easily digestible proportion for the body to synthesize two globular proteins.1 "conditionally essential" amino acids. Source: [1] "Edestin Gloulin Protein Found in Hemp Seeds Contain All 8 Essential Amino Acids," Hempcanadabulk.com; "Nutrition for Everyone: Basics: Protein," CDC.gov. Image courtesy of Shutterstock. 12 marketplace.supplysideshow.com Hemp has benefits over animal protein Hemp protein is more sustainable, digestible, and natural than animal-based proteins • With protein all the rage today, consumers are paying closer attention to protein sources. • Hemp protein is sustainable and takes much less land to produce than animal-based proteins like whey protein. • Hemp protein is also vegetarian. While only 4% of Americans say they are vegetarians, more than four times that number would classify their diet as "low meat."1 Source: [1] Datamonitor Consumer's global survey, 2014. Image courtesy of Living Harvest Tempt Facebook page. 13 marketplace.supplysideshow.com Hemp has a favorable dietary fat profile Average % Average % Ratio of % saturated omega-3 omega-6 omega 6:3 fat Hemp 20% 80% 4:1 10% Coconut 0.1% 1.8% 18:1 93% Chia 60%* 40% 1:1.5 7% Olive 16% 10% 1:1.8 15% Flax 58% 14% 1:4 10% CanolaIndustrial hemp grows10% differently 22%than THC- 1:2.1 8% containing cannabis and looks more like bamboo, The growingoptimum toratio a height of omega of 106 to to omega 15 feet 3 before fatty acids harvest. runs from 2:1 to 4:1. Source: ManitobaHarvest.com. *approximate value. 14 marketplace.supplysideshow.com Hemp's claim to superfood status • Hemp seed is not only rich in protein and essential fatty acids, but also contains high amounts of vitamin E, calcium, potassium, and magnesium. • Advocates of hemp indicate a diet rich in the food can aid heart health, improve immunity, increase energy levels, reduce inflammation, and aid muscle recovery. • Hemp is low in carbohydrates and calories relative to other protein sources, including animal-based proteins. Source: "Why Add Hemp Seed to Your Diet? Here Are The Benefits," Treehugger.com, August 6, 2014; "American Seed & Oil Company Introduces DuBe Hemp Energy Shot," PRNewswire.com, February 10, 2015. Images courtesy of Shutterstock. 15 marketplace.supplysideshow.com Agenda: Trends in Hemp: Is hemp the next "superfood" superstar? • Just what is hemp? • History • Hemp vs marijuana • The health case for hemp • The hemp market and hemp innovation • Market size and growth • Key innovations, new trends, opportunities • Key take-outs Hemp: market size and growth Hemp is beginning to gain traction in the US and the market is said to be growing by double digits, although it remains a niche market The US-based Hemp Industries Association US sales of hemp food and body care put the total retail market for hemp in the products rose 21.2% in 2014 to hit US at over $620m in 2014.1 $200m. Growth has exceeded 20% the past two calendar years.1 US: growth in hemp food and body care product sales (%), 2011–14 30% 24.0% 21.2% 20% 16.5% 10% 7.3% 0% 2011 2012 2013 2014 Source: [1] "2014 Annual Retail Sales for Hemp Products Estimated at $620 Million," Thehia.org, March 12, 2015. Images courtesy of Shutterstock.com 17 marketplace.supplysideshow.com Got hemp? Category penetration for hemp Global: percentage of new product categories with • Hemp is currently launches containing hemp, hempseed, hemp oil, used in a minority of etc.: January 2013 to February 2015 categories tracked by Datamonitor Consumer’s Product Use hemp Do not use hemp Launch Analytics. • Fewer than one-third of food and non- alcoholic beverage Food and non-alcoholic 29.9% 70.1% categories have beverages used hemp as an ingredient recently. • Category penetration for non-foods is even Non-foodsIndustrial (household, hemp grows differently than THC- lower with well under 15.7% 84.3% personalcontaining care, petcannabis care) and looks more like bamboo, one-fifth of product growing to a height of 10 to 15 feet before harvest. categories using hemp. 18 marketplace.supplysideshow.com The "sweet 16" categories for hemp Just 16 categories accounted for 2% or more of total global hemp and hempseed product launches from January 2013 to February 2015 Percentage of all Percentage of all Product category Product category hemp launches hemp launches Cereal bars 13.7% Functional drinks 3.2% Lip make-up 8.4% Oils (cooking oil) 3.2% Soap 6.3% Baby snacks 2.1% Body care 4.2% Bath and shower 2.1% Breakfast cereals 4.2% Concentrates (bev's) 2.1% Chocolate 4.2% Crackers 2.1% Vitamins and minerals 4.2% Nuts and seeds 2.1% Industrial hemp grows differently than THC- containingDog food cannabis and3.2% looks more like bamboo,Other savory snacks 2.1% growing to a height of 10 to 15 feet before harvest.
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