The global industrial hemp market, valued at USD 7.90 billion in 2023, is set for significant growth, with projections indicating an increase from USD 9.47 billion in 2024 to USD 47.82 billion by 2032. This remarkable expansion is characterized by a compound annual growth rate (CAGR) of 22.44%. The growth is largely driven by the legalization of medical cannabis in over 30 countries, including Australia, Argentina, Colombia, Brazil, Canada, Ireland, Germany, and Denmark.
Industrial hemp, a variety of cannabis also known as hemp or non-drug cannabis, does not exhibit the psychoactive properties associated with its relative, marijuana. It is an annual plant cultivated in over 30 countries worldwide for its seeds and stalks, which have diverse industrial uses. Hemp seeds are widely utilized in the food and personal care industries, as well as in the production of paints and chemicals. The stalks are used to produce bast fiber and hurd fiber. Bast fiber is commonly employed in both consumer and technical textile industries, while hurd fiber is used in construction, paper manufacturing, and the automotive industry.
One of the primary factors driving the growth of the industrial hemp market is the rising demand for hemp across various industries, including food and beverage, textiles, and dietary supplements. Its nutritional benefits and eco-friendly attributes have made industrial hemp increasingly popular among health-conscious consumers. The growing emphasis on health and wellness is fueling demand for hemp-based food products, supplements, and hemp oil. Specifically, hemp oil is gaining traction in the cosmetics and personal care sectors due to its antioxidant properties. This shift towards health-focused products is a significant catalyst for the continued expansion of the industrial hemp market.
Information Source: https://www.fortunebusinessinsights.com/industrial-hemp-market-102459
Segmentation:
Conventional Segment Expected to Lead Due to Expanding Product Deployment
The industrial hemp market is segmented into organic and conventional categories based on the source. The conventional segment is anticipated to experience significant growth in the coming years, driven by its expanding applications in industries such as paper, textiles, and automotive.
Among product types, the hemp fiber segment is expected to see substantial growth due to its increasing adoption in the automotive and textile sectors. The market is further divided into hemp seed oil, hemp seeds, hemp fiber, and other products, with hemp fiber projected for notable expansion during the forecast period, particularly owing to its rising use in paper, automotive, and textile manufacturing.
The growing emphasis on sustainability is also expected to enhance the significance of the textile segment within the hemp market.
In terms of applications, the market is categorized into pharmaceuticals, beverages, food (including functional and dietary foods), personal care and cosmetics, and other products. The textile industry holds a significant market share and is anticipated to grow considerably, driven by heightened consumer awareness of climate change and sustainability.
Geographically, the industrial hemp market is analyzed across key regions, including Asia Pacific, Europe, North America, South America, and the Middle East and Africa.
Report Coverage:
The report offers a comprehensive analysis of the key drivers, challenges, and factors influencing the growth of the industrial hemp market. It highlights significant market trends and assesses the impact of the COVID-19 pandemic on product sales. Additionally, the report outlines the strategic initiatives and actions undertaken by leading companies to gain a competitive edge in the market.
Drivers and Restraints:
Market Value of Hemp Products Will Increase Due to Increased International Trade
The growth of the industrial hemp market is primarily fueled by the rising demand for hemp-based products across various sectors, including food, medicine, and textiles. Furthermore, the increasing need for hemp fiber processing in several countries is contributing to this upward trend.
However, the market's expansion may be constrained by stringent regulations governing the production, distribution, and marketing of industrial hemp. These regulatory challenges could impede growth, even in the face of strong demand.
Regional Insights:
Due to the region's increasing product consumption, Europe is the leading region.
During the study period, Europe’s industrial hemp market is expected to witness substantial growth, fueled by the rising demand for hemp products throughout the region. Similarly, the Asia-Pacific market is projected to experience significant expansion, largely due to the extensive use of hemp in the paper and textile manufacturing industries.
Competitive Landscape:
Big Businesses Form Partnerships to Boost Their Market Position
Key players in the industrial hemp market are actively implementing various strategic initiatives to bolster their market positions. These efforts encompass forming alliances, entering partnership agreements, and engaging in collaborations. Additionally, acquisitions, mergers, and similar strategies are vital for expanding their market presence and enhancing competitiveness.
Key Industry Development
February 2023 - Alcott Enterprises, a managed services and IT consulting firm, has partnered with Flourish Software. This collaboration aims to deliver improved implementation services, technical support, expertise, and integration capabilities specifically for hemp companies.
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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