Eurolife has acquired a percentage ownership in a multi-vertical state-of-the-art industrial hemp agricultural operation, located near Dresden, Germany. The operation is owned and operated by Farmhus GmbH, whose management team has deeply established business roots throughout Europe.
Strategy and Downstream Value Creation
This operation will serve as a key strategic asset for EuroLife as it continues executing on its roadmap of creating a vertically integrated and diversified enterprise operating within the EU. Through sustained strategic deployment of capital and unification of synergistic assets EuroLife aims to become one of the largest health and wellness assessment management companies in Europe.
There are literally hundreds of products that the management team at Farmhus can create, from hemp superfoods, to seed immune-boosters, to beauty creams and moisturizers, to environmentally sustainable bio-friendly cardboard packaging and eco-friendly clothing and activewear.
In addition to standard operations of Health and Wellness products, our team is working with Farmhus to establish additional revenue generating high value end-points for the business unit. Such as ‘eco-friendly’ sustainable paper and plastic packaging alternatives, fiber and textiles, and animal feed are all being assessed as avenues to capture additional margin from existing and future operations.
European Hemp Market
Boasting a population of over 700 Million citizens, with over 500 Million in the EU alone, the European opportunity afforded within the hemp marketplace is growing at a substantial pace. EuroLife is of the opinion that as the industry matures and normalization takes hold, organizations equipped with low-cost production combined with tactical downstream capability will prevail.
Currently there is a robust hemp market in the EU, with production in most member nations. In 2018, European cultivation grew by over 40% from 2015 to more than 40,000 hectares of production. Hemp production is centered in France, the Netherlands, Lithuania, and Romania, with France being the largest producer, accounting for almost 50% of Europe’s total production.
With health and wellness taking hold of the global market the opportunity is staggering for EuroLife. The market for our category of hemp products is projected to account for over 0.15% of the total health and wellness market value by 2028. According to the latest research by the Global Wellness Institute, the worldwide wellness market grew 12.9% from $3.72 trillion in 2017 to $4.2 trillion in 2018. The European market alone is projected to be worth at least €1.5 billion by 2023.