- The U.S. CBD market is expected to grow to $22 billion by 2022
- CBD extraction from hemp biomass is proving to be the preferred method due to its relatively low cost and high yields in comparison to cannabis extraction
- HTC Extraction Systems has already positioned itself for market success due to its proprietary extraction technology
The CBD extraction market will register exponential growth in the years to come, market reports suggest. According to a Cannabis Extract Market Size report, the annual growth rate for CBD extraction is set at 22.1 percent and the market is anticipated to reach $23.7 billion by 2025 (http://cnw.fm/PhtC4).
Market dynamics will largely drive the demand for high quality extracts up. The world is already seeing steady growth in the need for oils and tinctures derived from hemp biomass. Additionally, legislative changes are liberalizing the market and allowing for large scale operations to be set up easily.
The U.S. CBD market alone will soar from $591 million in 2018 to a massive $22 billion by 2022, growing at a CAGR of 147 percent (http://cnw.fm/SD6oE). According to reports, this exponential growth will provide excellent opportunities for CBD extraction companies – a player that isn’t spoken of as often as other industry entities are.
Handling the extraction of CBD from hemp biomass is much cheaper and a more effective process than extraction from cannabis. Extraction service providers who are already well-established can easily take on new clients, signing supply agreements that last for several years. Hence, this market segment is considered quite promising and crucial for the overall development of the industry.
Companies like HTC Extraction Systems (TSX.V: HTC) are already capitalizing on their market presence established through the development of innovative extraction technologies.
HTC Extraction Systems has developed a proprietary ethanol, solvent and glycol reclamation operation. The company’s biomass processing methodology is utilized in three stages – pre-oil preparation, oil extraction and purification and oil refinement. The result is 50 percent crude CBD oil that can be distilled further for the production of full spectrum oil or pure CBD isolate.
HTC is engaged in preliminary due diligence investigations that would expand its operations into the United States, where the company seeks to replicate its model of using hemp biomass tolling contracts with producers and other providers to begin extraction for the 2020 hemp crop growing year in an as-yet-to-be-determined location.
The company has entered into and are negotiating various agreements that will continue to strengthen its hemp biomass processing potential. Based on one agreement alone, HTC Extraction Systems will process five million kilograms of Identity Preserved hemp biomass to extract full spectrum oil and/or pure CBD isolate.
The company’s operations have generated a three-fold revenue hike – from $560,260 in 2018 to $1.85 million over the course of 2019 so far.
During the same period, HTC Extraction Systems announced its already developed strategy for extracting cannabidiol full spectrum oil from hemp biomass for distillation. The company’s patented Delta Purification System offers high quality environmental reclamation technology for clean biomass extraction. Upon receipt of required license and the implementation of the company’s intellectual property through the extraction system, HTC Extraction Systems will have hemp biomass byproducts available for singulation and CBD pharmaceutical market sales.
For more information, visit the company’s website at www.HTCExtraction.com
NOTE TO INVESTORS: The latest news and updates relating to HTC are available in the company’s newsroom at http://cnw.fm/HTC
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