The global Industrial Hemp Market, valued at USD 7.90 billion in 2023, is projected to expand significantly, growing from USD 9.47 billion in 2024 to USD 47.82 billion by 2032. This growth, representing a compound annual growth rate (CAGR) of 22.44%, is primarily driven by the legalization of medical cannabis in over thirty countries, including Australia, Argentina, Colombia, Brazil, Canada, Ireland, Germany, and Denmark.
A major factor contributing to this market expansion is the increasing demand for industrial hemp across various sectors, including food and beverage, textiles, and dietary supplements. Industrial hemp is renowned for its numerous nutritional and environmental benefits. The surge in consumer interest in health and wellness has spurred greater demand for hemp-based food and drink products, nutritional supplements, and hemp oil, which is also gaining traction in cosmetics and personal care products due to its antioxidant properties. This growing consumer awareness and demand for health-oriented products are key drivers of the industrial hemp market's growth.
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 substantial growth in the coming years, driven by its increasing use across various industries, including paper, textiles, and automotive.
Within the product types, the hemp fiber segment is projected to see significant growth, particularly due to its rising adoption in the automotive and textile sectors.
The market is categorized into hemp seed oil, hemp seed, hemp fiber, and other segments. Among these, the hemp fiber market is expected to grow notably during the forecast period, bolstered by its expanding applications in the paper, automotive, and textile industries.
The rising emphasis on sustainable practices is likely to elevate the prominence of the textile segment within the market.
In terms of application, the market is divided into pharmaceuticals, beverages, food (including functional and dietary foods), personal care and cosmetics, and other products. The textile industry holds a substantial market share and is projected to grow significantly, driven by increasing consumer awareness of climate change and sustainability.
Geographically, the industrial hemp market is analyzed across 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 forces, challenges, and drivers influencing the growth of the industry. It highlights critical market trends and assesses the impact of the COVID-19 pandemic on product sales. Additionally, the report outlines the significant strategies and efforts employed by major corporations 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 driven by increasing demand for hemp-based products across diverse industries, including food, medicine, and textiles. Additionally, the rising need for hemp fiber processing in various countries is further fueling this upward trend.
However, the market’s expansion may face challenges due to stringent 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 is expected to experience substantial growth, driven by the region's rising demand for hemp products. Simultaneously, the Asia Pacific market is projected to see significant expansion during the forecast period, supported 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 a range of strategic initiatives to bolster their positions. These efforts involve forming alliances, entering into partnership agreements, and engaging in collaborations. Additionally, acquisitions, mergers, and other related strategies are significantly contributing to the enhancement of 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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