The Global Industrial Hemp Market is expected to grow from USD 3.92 Bn in 2020 to USD 11.72 Bn by 2027, at a CAGR of 16.7%.
Increasing demand for industrial hemp from the pharmaceutical sector is anticipated to drive the market growth during the forecast period. Innovation in the use of hemp for medical purpose is expected to support the market growth. The legal hemp for CBD production and medicinal cannabis sector is expected to drive the industrial hemp demand in the near future. Manufacturers are aiming towards advanced scientific procedures such as in vitro micropropagation to cut production costs and provide scalable, healthy, and high-quality industrial hemp varieties. Additionally, the critical need for cost-effective propagation to meet demand, and the need to establish a properly characterize cultivars equivalent to be used in traditional agriculture with specific, consistent THC (Tetrahydrocannabinol) is expected to drive the industrial hemp market growth.
Additionally, the use of hemp in textile products is expected to drive the market growth. The exterior section of the hemp stalk contains bast fibres, which are primarily used in the textile industry to make yarns, spun fibres, and a variety of consumer and industrial textiles. The use of hemp in the manufacturing of yarns, and spun fibers is anticipated to foster the market growth during the forecast period. Hemp fibres are strong, comprising hemicellulose, and have a high absorptivity. These features combine to make hemp a valuable crop for the textile industry. Moreover, hemp can be also used in paper, carpeting, home furnishings, construction materials, auto parts, and composites. Hemp bio composites are widely used in the production of automobile parts and components. The growing trend of vehicle weight reduction is projected to provide potential opportunities for hemp fibres as hemp is light weight compared to other materials.
Based on hemp type, the market has been segmented into fiber, seed and oil. Seeds segment is anticipated to hold the largest market share during the forecast period. Hemp seeds are crushed to make hemp oil, which contains a high concentration of unsaturated fatty acids. Hemp leaves can be consumed raw in salads or pressed to make juice. Hemp seeds contain two important fatty acids, linoleic (omega-6) and linolenic (omega-3) (omega-3). They are also high in vitamin E, vitamin B1, vitamin B2, vitamin B6, and vitamin D, These characteristics makes them popular in ready-to-drink beverages, energy drinks, snacks and cereals, soups, sauces, and bakery products. Moreover, humans are unable to generate necessary fatty acids. Hemp seeds, which are high in linoleic (omega-6) and linolenic acid, may be useful to complete the daily required omega-6 content. Thus, the use of hemp seed in food consumption is expected to drive the market growth in the near future.
Global Industrial Hemp Market by Region Outlook (Revenue, USD Million, 2021-2027)
In terms of geography, Asia-Pacific is expected to dominate the industrial hemp market during the forecast period. This region is considerably a major producer of industrial hemp owing to the presence of several manufacturers in China. In 2020, China was the leading producer and exporter of industrial hemp products such as paper and textiles. Industrial hemp is grown in more than 20 Chinese provinces, with Heilongjiang, Yunnan, Shanxi, and Anhui leading the way. The presence of leading manufacturers and the adoption of hemp in manufacturing operations are likely to support the demand for hemp products.
Moreover, the use of industrial hemp in the construction industry is expected to support the market growth in the near future. In construction, hemp is used to construct walls. Over the last decade, the building industry has experienced rapid growth. For instance, in Canada, with over 50 skyscrapers are being developed in major cities such as Toronto, Vancouver, and Calgary. However, it has recently declined, with the total value of residential permits falling by around 13.1% to CAD 4.6 billion (USD 3.27 billion) revenue in March 2020. Furthermore, Mexico's textile sector benefits from the NAFTA agreement, which provides free commerce between the United States, Canada, and Mexico. Now, as a result of the United States-Mexico-Canada Agreement (USMCA), also known as NAFTA 2.0. This trade agreement provides easy access to the transport of hemp in these regions which is anticipated to drive the market growth during the forecast period.
The Global Industrial Hemp Industry Segmentation:
Global Industrial Hemp Market by Source Industry Outlook (Revenue, USD Million, 2021-2027)
Global Industrial Hemp Market by Hemp Type Industry Outlook (Revenue, USD Million, 2021-2027)
Global Industrial Hemp Market by Application Industry Outlook (Revenue, USD Million, 2021-2027)
Company Profiles and Competitive Intelligence
The key players operating in the industrial hemp market are: