The global Industrial Hemp Market was valued at USD 7.90 billion in 2023 and is expected to grow from USD 9.47 billion in 2024 to USD 47.82 billion by 2032, with a compound annual growth rate (CAGR) of 22.44% during this period. This rapid expansion is largely fueled by the legalization of medical cannabis in thirty countries, including Australia, Argentina, Colombia, Brazil, Canada, Ireland, Germany, and Denmark.
A key driver of market growth is the increasing demand for industrial hemp across a range of applications, such as the food and beverage, textile, and dietary supplement industries. Industrial hemp is valued for its numerous nutritional and environmental benefits. The rising consumer interest in health and wellness has led to greater demand for hemp-based food and drink products, nutritional supplements, and hemp oil, which is gaining popularity in cosmetics and personal care products due to its rich antioxidant properties. This heightened consumer awareness and demand for health-oriented products are major contributors to the growth of the industrial hemp market.
Information Source: https://www.fortunebusinessinsights.com/industrial-hemp-market-102459
Segmentation:
Because of Expanding Product Deployment in Various Industries, Conventional Segment to Lead
The market is divided into organic and conventional segments based on the source. It is projected that the traditional market will see a significant uptick in the upcoming years. The increasing product use in a number of industries, including paper, textile, and automotive, is the reason for the increase.
The hemp fiber segment is expected to grow profitably as a result of increased adoption in the automotive and textile industries.
The market is divided into hemp seed oil, hemp seed, hemp fiber, and other categories based on kind. It is predicted that the hemp fiber market would grow profitably over the anticipated time frame. The increasing product use in the paper, automotive, and textile industries is driving the upsurge.
The growing adoption of sustainable practices is expected to propel the textile segment to prominence.
Pharmaceuticals, drinks, food (functional and dietary foods), personal care & cosmetics, and other products make up the segments of the market based on application. The textile industry had a significant portion of the market and is predicted to grow significantly throughout the projected time frame. Growing consumer awareness of climate change is driving the growth.
The industrial hemp market has been examined geographically in Asia Pacific, Europe, North America, South America, and the Middle East and Africa.
Report Coverage:
The report provides an analysis of the key forces, challenges, and drivers shaping the industry's growth. It also highlights the critical market trends and examines the impact of the COVID-19 pandemic on product sales. Additionally, the report details the significant efforts undertaken by major corporations to secure a strong competitive advantage.
Drivers and Restraints:
Market Value of Hemp Products Will Increase Due to Increased International Trade
The growth of the industrial hemp market is being fueled by the rising demand for hemp-based products across various industries, including food, medicine, and textiles. Additionally, the expanding need for hemp fiber processing in multiple countries is contributing to this upward trend.
However, the market's expansion could be hindered by strict regulations governing the production, distribution, and marketing of industrial hemp.
Regional Insights:
Due to the region's increasing product consumption, Europe is the leading region.
Throughout the study period, Europe's industrial hemp market share is expected to experience substantial growth, driven by the region's increasing demand for hemp products. Meanwhile, the Asia Pacific market is also anticipated to see significant growth during the forecast timeframe, fueled by the widespread use of hemp in paper and textile manufacturing.
Competitive Landscape:
Big Businesses Form Partnerships to Boost Their Market Position
Key players in the market are actively developing and implementing various strategic initiatives to enhance their positions. These efforts include forming alliances, entering partnership agreements, and engaging in collaborations. Additionally, acquisitions, mergers, and other related strategies are playing a significant role in strengthening their market presence.
Key Industry Development
February 2023 - Alcott Enterprises, a managed services and IT consulting firm, signed a partnership with Flourish Software. The primary goals of the agreement are to provide hemp firms with enhanced implementation services, support, technological know-how, and integration capabilities.
List of Key Players Mentioned in the Report:
- Fresh Hemp Foods Ltd. (Canada)
- IND HEMP, LLC. (U.S.)
- Blue Sky Hemp Ventures (Canada)
- Panda Biotech, LLC (U.S.)
- Hemp Republic (India)
- South Hemp Tecno Srl (Italy)
- HEMP FACTORY (Germany)
- East Mesa (U.S.)
- DON Processing, Inc. (U.S.)
- HempFlax Group B.V. (Netherlands)
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