The global Industrial Hemp Market, valued at USD 7.90 billion in 2023, is poised for substantial growth, with projections indicating an increase from USD 9.47 billion in 2024 to USD 47.82 billion by 2032. This impressive expansion, at a compound annual growth rate (CAGR) of 22.44%, is largely fueled by the legalization of medical cannabis in more than 30 countries, including Australia, Argentina, Colombia, Brazil, Canada, Ireland, Germany, and Denmark.
A key driver of this growth is the rising demand for industrial hemp across diverse industries such as food and beverage, textiles, and dietary supplements. Known for its nutritional and environmental benefits, hemp is increasingly favored by health-conscious consumers. The growing focus on health and wellness has boosted the demand for hemp-based food and beverages, nutritional supplements, and hemp oil, which is also gaining popularity in the cosmetics and personal care industry due to its antioxidant properties. This shift in consumer preferences towards health-focused products is a significant factor propelling the industrial hemp market forward.
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 source. The conventional segment is expected to witness substantial growth in the coming years, driven by its expanding use across various industries such as paper, textiles, and automotive.
Among the product types, the hemp fiber segment is projected to experience significant growth, particularly 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. Of these, hemp fiber is expected to see notable expansion during the forecast period, driven by its growing applications in paper, automotive, and textile industries.
The rising focus on sustainable practices is also anticipated to boost the prominence of the textile segment within the market.
In terms of application, 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 considerable market share and is projected to grow significantly, supported by increasing consumer awareness of climate change and the importance of 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 provides an in-depth analysis of the key drivers, challenges, and forces shaping the industry's growth. It highlights major market trends and evaluates the impact of the COVID-19 pandemic on product sales. Furthermore, the report details the strategic initiatives and efforts undertaken by leading companies to secure a competitive advantage 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 driven by the rising demand for hemp-based products across a wide range of industries, including food, medicine, and textiles. Additionally, the increasing demand for hemp fiber processing in various countries is further contributing to this upward trend.
However, the market's expansion may encounter obstacles due to stringent regulations surrounding the production, distribution, and marketing of industrial hemp.
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 experience substantial growth, driven by increasing demand for hemp products across the region. Meanwhile, the Asia Pacific market is projected to see significant expansion, 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 pursuing various strategic initiatives to strengthen their positions. These efforts include forming alliances, entering partnership agreements, and engaging in collaborations. Additionally, acquisitions, mergers, and related strategies are playing a crucial role in enhancing their market presence and competitiveness.
Key Industry Development
February 2023 - Alcott Enterprises, a managed services and IT consulting firm, has entered into a partnership with Flourish Software. The key objectives of this agreement are to offer hemp companies improved implementation services, technical support, expertise, 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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