The Health Canada Industrial Hemp Regulations (IHR) have undergone significant changes, with a major update in January 2019 that expanded the scope of hemp cultivation to include the harvest of hemp for cannabidiol (CBD). As a result, the Canadian hemp industry has seen substantial growth, with market value projections expected to exceed $1.5 billion annually by 2024 (InnoTech Alberta).

Under the 2018 Industrial Hemp Regulations, industrial hemp is defined as cannabis plants or plant parts with no more than 0.3% THC in their leaves and flowering heads. Notably, there are no restrictions on the concentration of CBD, allowing for the production of high-CBD hemp products.

Although hemp cultivation regulations have been in place since 1998, the focus has historically been on hemp seeds and fibre. However, with more than 100,000 acres of hemp grown in Canada as of 2023 (Statistics Canada), the industry is experiencing rapid expansion. Despite this growth, demand still outpaces supply, presenting a lucrative opportunity for new entrants.
An Industrial Hemp License allows the holder to tap into this fast-growing market with relatively low start-up costs and minimal barriers to entry. With an export license, businesses can access the expanding international legal markets, including Europe and Asia, where the demand for high-quality CBD products continues to rise. This global reach and CBD's high medical value amplify the potential for significant revenue growth.

Storage is crucial to industrial hemp operations, mainly when dealing with large quantities of harvested plants and CBD products destined for international markets. Proper storage facilities ensure the preservation of product quality and compliance with regulatory standards, which is essential for domestic and export activities.Applicants for an Industrial Hemp License face less stringent security and capital requirements compared to those cultivating cannabis for high THC. The primary cost of hemp cultivation remains labour, particularly for planting and harvesting. However, with Health Canada's efficient approval process, most Industrial Hemp applications are approved within 60 days.