The Global Industrial Hemp Market was valued at USD 3.92 Bn in 2020 and is expected to reach USD 11.72 Bn by 2027, with a growing CAGR of 16.7% during the forecast period.
Global Industrial Hemp Market Overview
Industrial hemp is derived from the Cannabis sativa a plant species. It is used in the production of a wide range of industrial and consumer products around the globe. Hemp is a fibre and oilseed crop grown in more than 30 countries. Production in the United States is regulated by drug enforcement legislation. In order to grow industrial hemp in the United States, the farmer must first get a permit from the Drug Enforcement Agency (DEA). Industrial hemp is sold as a fibre, a seed, or as a multipurpose crop.
Global Industrial Hemp Market Dynamics
Growing demand for hemp seeds from the food sector is anticipated to drive the market growth during the forecast period. Hemp seeds can be used to make a wide range of food products, including hemp oil, cheese, hemp-based protein powder, and milk. Hemp contains high protein and vitamin content and they are majorly used in food and beverages, supporting the industrial hemp sector growth. Additionally, the adoption of legality for hemp farming is supporting manufacturers and research organizations to create new products from industrial hemp. Moreover, the use of hemp in oil production is expected to drive the industrial hemp market growth in the near future. The use of hemp in biofuel production is also expected to support the demand for hemp. Hemp biodiesel is manufactured by using hemp seed oil and can be used in any conventional diesel engine. Biofuel is one such use that is expected to have significant growth potential in the coming years.
Moreover, industrial hemp creates one of the most eco-friendly fabrics, owing to which hemp fiber is also called as fiber of hundred uses. Furthermore, nowadays, use of hemp textile has increased in producing t-shirts since it is resistant to wear and tear, which propels the growth of the industrial hemp market throughout the forecast period.
Nevertheless, complex regulatory policies for hemp consumption may restrain the industrial hemp market growth owing to strict regulatory rules and norms relating to production and sales of industrial hemp across various states in the same country could be different for producers and stakeholders to comply with. Furthermore, norms associated with hemp containing Tetrahydrocannabinol (THC) and Cannabidiol (CBD) may vary from country to country, which further leads to compliance related to trading of the commodity. For instance, in the U.S., diversified legal policies should be taken into consideration, which consist of licensure of hemp manufacturers, certification of seeds, regulation, state-wide commissions, and legal protection of manufacturers.
The Global Industrial Hemp Market Segmentation:
By Hemp Type
The unique insights provided by this report also include the following:
Based on source, conventional segment held the largest market share in 2020 and is expected to bolster the market demand during the forecast period due to its application on hemp derived fibers
Based on source, the market is segmented into conventional and organic. The conventional segment held the largest market share in 2019 and is projected to remain dominant during the forecast period. Fiber derived from hemp is one of the durable forms of natural fiber and supports the demand for industrial hemp. For instance, in 2019 the top importers of hemp fibers were, Czechia USD 2.88 M, United Kingdom USD 2.39 M , Germany USD 4.1M, Austria USD 3.89 M, Spain USD 3.58M. Therefore, use of hemp in fiber production is expected to drive the industrial hemp market growth in the near future.
Based on application, the food & beverages segment in the industrial hemp market held the largest market share during the forecast period owing to nutritional benefits of hemp
Based on application, the market has been segmented into personal care products, pharmaceuticals, food & beverages, and others. Food & beverages held the largest market share during the forecast period. Hemp seeds can be consumed whole or processed to oil and food. Nutrition bars, salad dressings, cheese, and ice cream, contain hemp seeds and flour. Thus, the use of hemp in food products is expected to support the market growth during the forecast period. For instance, The Tea & Coffee company claimed that orders for hemp milk doubled in 2020. The market potential for hemp seed as a food ingredient is expected to be at nascent stage, like the markets for sesame and poppy seeds. Some consumers may be willing to pay a higher price for hemp-seed-containing products due to its originality. Additionally, hemp oil is being used as an ingredient in body-care products may support the industrial hemp market growth. They are used in lotions, moisturizers, and shampoos, and sold in health food stores as a nutritional supplement.
Based on region, Asia Pacific held the largest market share during the forecast period owing to China as a major hemp & hemp products manufacturer
Based on region, the global industrial hemp market is split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is expected to hold the largest market share during the forecast period. China is one of the leading producers of industrial hemp across the globe. According to statistics from the ‘China Agriculture Research System for Bast and Leaf Fiber Crops’, the overall production area of hemp in China in 2020 was 6.54 104 ha (hectares), accounting for 88.9% of the total area of the world in 2018. In China, the hemp sector is classified geographically at the provincial level. For example, in Yunnan province, the leading industry is extracting hemp for medical and cosmetic use, whereas in Shanxi province, hemp seed and fibre is harvested for food and textile use. Additionally, since 2003, the industry has switched to collecting flowering heads and leaves for the extraction of cannabidiol (CBD), which is supported by local legislation. Thus the support for extraction of CBD is expected to drive the industrial hemp market growth in the near future.
The report also provides an in-depth analysis of industrial hemp market dynamics such as drivers, restraints, opportunities, and challenges
COVID-19 Impact on the Industrial Hemp Market Analysis
The COVID-19 pandemic had moderately impacted many lives and businesses across the globe which result in the slowdown of economies. The supply chain for the raw materials was moderately affected during the lockdown situation. The demand for hemp from the personal care products sector increased unexpectedly. For instance, the entire increase represents marijuana's mainstreaming in American society, with state and municipal governments progressively acknowledging the worth and benefits of medicinal marijuana in the face of the COVID-19 pandemic. Especially, in the United States, new customers emerged to use cannabis drinks to strengthen their immunity, as well as medicines made from marijuana or cannabis, which are commonly used to relieve physical discomfort. On March 23rd, 2020, sales for hemp in Denver were up 392 % compared to the same previous week due to the stay-at-home ruling. Following the closure of in-person retail operations by the state, a Reno delivery business witnessed a 400 % increase in sales. In the United States, when legalised sales existed, the decision of whether a retail store should close or remain open as critical infrastructure was made.
The report also provides an in-depth analysis of key trends in the industrial hemp market
The report also provides an in-depth analysis of recent news developments and investments
Company Profiles and Competitive Intelligence
The key players operating in the industrial hemp market are:
Ask for free product review call with the author
Share your specific research requirements for a customized report
Request for due diligence and consumer centric studies
Request for study updates, segment specific and country level reports