Green Hygienics Holdings has entered into a multiyear purchase order for the sale of hemp to U.S. Tobacco de Mexico, an industry leader with over 20 different brands of CBD hemp cigarettes. The lucrative five-year contract will require Green Hygienics to deliver $56.4 million worth of hemp flower to the Tijuana, Mexico-based firm for use in its production lines.
U.S. Tobacco de Mexico is a Tijuana-based tobacco and cigarette product importer. Its excellent management team and global positioning capabilities will provide various opportunities, making the partnership an exciting one, Green Hygienics Vice President of Business Development Matt Dole said in a news release.
Green Hygienics is working on strategic collaborations and market acquisitions. These corporate moves are expected to enable the company to position itself in the best possible way as the hemp market grows.
"The U.S. hemp market alone is expected to grow nearly 10 times, to over $20 billion, by 2024. Currently, the U.S. hemp product market is estimated at $1.8 billion, but legislative changes such as the passing of the federal Farm Bill are expected to allow for much quicker growth in the future," they continue.
Globally, the CBD product market is expected to reach a volume of $16.32 billion by 2026, achieving a CAGR of 27.7 percent. Health care innovation, clinical research and a broader acceptance of hemp-based products are all expected to contribute to the expansion. The market is segmented into food-grade and therapeutic-grade products. The therapeutics products are anticipated to continue holding the largest market share, reaching $9.3 billion by 2026.
"Scientific innovation can be used to control the conditions and the factors that determine cultivation quality," the team points out. "Through our developments, we can monitor all aspects of cannabis cultivation to maximize yields and reduce the cost per gram in relationship to what competitors are capable of offering.
Green Hygienics Company is headquartered in Las Vegas, Nevada. It is also establishing operations in San Diego to target the $5 billion California market.