Hemp Oil Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Hemp Oil Market is segmented By Product (Hemp Flower Oil, CBD Oil, Hemp Seed Oil), By Type (Original, Blended), By Source (Organic, Inorganic), By Distribution Channel (Pharmaceutical Retail Store, Online Pharmaceutical Store, Hospital Pharma Retail, Others), By Application (Pharma and Nutraceuticals, Personal Care & Cosmetics, Industrial, Food and Beverages, Others), and By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Hemp Oil Market Overview

Global Hemp Oil Market size reached USD 9.8 billion in 2022 and is projected to witness lucrative growth by reaching up to USD 27.2 billion by 2030. The market is growing at a CAGR of 17.1% during the forecast period 2023-2030.

Hemp oil, derived from the seeds or flowers of the hemp plant and is rich in beneficial compounds such as cannabinoids, terpenes, and fatty acids. With its potential therapeutic properties and diverse applications, hemp oil has emerged as a valuable ingredient in various industries, including healthcare, cosmetics, food and beverages, and pharmaceuticals. 

The legal landscape surrounding hemp and CBD products has been witnessing positive market trends, contributing to the growth of the hemp oil market. Many countries have revised their regulations to permit the cultivation, extraction and sale of hemp-derived products which bring more market opportunities for global hemp oil market.

The CBD oil segment is the fastest growing sector in the type segment with over half of the market share. The primary reason behind the fast paced growth is driven by the shift towards natural and plant-based products, driven by a desire for healthier alternatives and sustainability. Similarly, North America is the largest region in the hemp oil market with over 1/3rd of the market share. The growth and dominance of the respective region is mostly due to expanding legalization of hemp and CBD products.

Hemp Oil Market Scope 

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Hemp Oil Market Dynamics and Trends

Sustainability Concerns and Expansion of Legalization and Regulatory Frameworks

The growing emphasis on sustainability and environmental consciousness has become a significant driver in the global hemp oil market. Hemp plants are known for their low environmental impact, as they require fewer pesticides, herbicides, and water compared to other crops. Moreover, hemp cultivation aids in soil regeneration and carbon sequestration. Governments globally have recognized the ecological benefits of hemp and its potential contribution to a more sustainable future. As a result, there has been a push to promote hemp farming and the use of hemp-derived products, including hemp oil.

Moreover, the gradual legalization and regulatory advancements surrounding hemp and hemp-derived products have played a crucial role in boosting the global hemp oil market. Many countries and regions have recognized the potential economic and health benefits of hemp and have implemented laws to facilitate its cultivation, processing, and distribution. For example, in U.S., the Agriculture Improvement Act of 2018 legalized the cultivation of hemp, leading to a significant increase in hemp oil production. Similarly, other countries such as Canada, Australia, and parts of Europe have implemented progressive regulations to support the hemp industry. The legal and regulatory developments have created a favorable environment for the growth of the global hemp oil market.

Increasing Awareness of Health Benefits and Rising Demand in Cosmetics and Personal Care Industries

Hemp oil, derived from the seeds of the Cannabis sativa plant, contains high levels of beneficial compounds such as omega-3 and omega-6 fatty acids, antioxidants, and other essential nutrients. One of the primary drivers of the global hemp oil market is the growing awareness among consumers regarding its health benefits. Hemp oil is known for its potential therapeutic properties, including anti-inflammatory, antioxidant, and neuroprotective effects. As governments and healthcare organizations globally promote natural and holistic approaches to health, the demand for hemp oil as a nutritional supplement and wellness product has risen.

Further, the cosmetics and personal care industries emerged as major end-user of the global hemp oil market. Hemp oil is increasingly being incorporated into skincare, haircare, and personal care products due to its moisturizing, nourishing, and anti-aging properties. The demand for natural and organic ingredients in cosmetics has surged in recent years, leading to the integration of hemp oil into a wide range of beauty and personal care products. Government reports indicate a substantial increase in the use of hemp oil in cosmetics, with market data suggesting a steady rise in sales and market share for hemp oil-infused products.

Legal and Regulatory Constraints

Hemp oil, derived from the seeds of the cannabis sativa plant, is rich in essential fatty acids and has various applications in the food, pharmaceutical, and cosmetics industries. However, despite the positive market outlook, several restraints hamper the growth and development of the global hemp oil market. One such restraints on the global hemp oil market is the legal and regulatory framework surrounding the cultivation, extraction and sale of hemp-derived products. While the legalization of hemp cultivation has gained traction in many countries, there are still jurisdictions with strict regulations or outright bans on cannabis-related products. 

The regulatory constraints create uncertainties for market participants, hindering the widespread adoption and commercialization of hemp oil products. For example, in U.S., the federal government has legalized hemp cultivation under specific conditions, but individual states may have different regulations, leading to a fragmented market landscape. According to data from government sources, as of 2020, 46 states in the US allowed hemp cultivation, while some states still imposed restrictions or required licenses. Similarly, in Europe, the European Union (EU) has established regulations for hemp cultivation and the use of hemp-derived products, but individual member states may have additional requirements or limitations. The legal and regulatory complexities act as significant restraints on the global hemp oil market, limiting its potential growth.

Hemp Oil Market Segmentation Analysis

The global hemp oil market is segmented based on product, type, source, distribution channel, application and region.

Increasing Popularity and Demand For CBD Oil Changing Legal Landscape

The global hemp oil market has experienced significant growth in recent years, driven by the increasing popularity and demand for CBD (cannabidiol) oil. CBD oil, derived from the hemp plant, has gained widespread attention due to its potential therapeutic benefits and non-psychoactive properties. One of the key drivers behind the growth of CBD oil in the global hemp oil market is the changing legal landscape surrounding cannabis and hemp products. Many countries and regions have revised their regulations to allow for the cultivation, processing, and sale of hemp and hemp-derived products, including CBD oil.

For instance, in U.S., the Agriculture Improvement Act of 2018 (Farm Bill) legalized the cultivation of industrial hemp and removed it from the list of controlled substances. The respective policy shift has paved the way for the widespread production and availability of CBD oil in the market. According to the U.S. Department of Agriculture (USDA), the licensed hemp acreage in U.S. increased from 511,442 acres in 2019 to 553,942 acres in 2020. The data indicates a growing interest among farmers in cultivating hemp for CBD oil production, further fueling the growth of the global hemp oil market.

Source: DataM Intelligence Analysis (2023)

Hemp Oil Market Geographical Classification

Supportive Government Initiatives, Legalization and Regulatory Developments

Government support and investments in the hemp industry have played a crucial role in the growth of the hemp oil market in North America. Various governments have recognized the economic potential of hemp cultivation and the associated industries. In U.S., the USDA has provided financial assistance, research grants, and resources to support hemp farmers and businesses. In Canada, the government has implemented programs to promote the growth of the hemp industry and facilitate market access for hemp-derived products. Such initiatives have encouraged the development of infrastructure, research, and innovation in the hemp oil sector.

One of the primary drivers behind the growth of the hemp oil market in North America is the legalization and regulatory developments related to hemp cultivation and its derived products. In U.S., the passage of the Agriculture Improvement Act of 2018, commonly known as the Farm Bill, legalized the commercial production of hemp, including the extraction of hemp-derived products such as hemp oil. The above legislation opened up new opportunities for hemp oil manufacturers and created a favorable regulatory environment for the industry to flourish. According to the U.S. Department of Agriculture (USDA), hemp cultivation licenses increased significantly from 2019 to 2020, with over 50,000 licenses issued.

Source: DataM Intelligence Analysis (2023)

Hemp Oil Market Competitive Players

The major global players in the market include King CBD, Royal CBD, Kazmira, Cavendish Nutrition Fulfillment LLC, QC Infusion, Hemp Oil Canada Inc, Canazil, Folium Biosciences, Pharmahemp d.o.o. and Moon Mother Hemp Company.

COVID-19 Impact On Hemp Oil Market

COVID Impact

The global hemp oil market has experienced several challenges as well as opportunities due to the COVID-19 pandemic. As the world grappled with the health crisis and implemented various measures to contain the spread of the virus, businesses across industries, including the hemp oil market, faced disruptions in supply chains, changes in consumer behavior, and shifts in market dynamics. COVID-19 caused significant disruptions in global supply chains, impacting the availability and distribution of hemp oil products. Lockdown measures, travel restrictions, and temporary closures of manufacturing facilities disrupted the production and transportation of hemp oil.

The COVID-19 pandemic brought about changes in consumer behavior, including a heightened focus on health and wellness. As people became more conscious of their well-being, there was a growing interest in natural and plant-based products, including hemp oil. Hemp oil is known for its potential health benefits, such as reducing inflammation and anxiety. Governments and health organizations emphasized the importance of maintaining a healthy immune system, leading to increased demand for products like hemp oil.

By Product

• Hemp Flower Oil
• CBD Oil
• Hemp Seed Oil

By Type

• Original
• Blended

By Source

• Organic
• Inorganic

By Distribution Channel

• Pharma Retail Store
• Online Pharmaceutical Store
• Hospital Pharma Retail
• Others

By Application

• Pharma and Nutraceuticals 
• Personal Care & Cosmetics
• Industrial
• Food and Beverages
• Beverages
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• Plum, a renowned company in the skincare and beauty product industry, introduced the Hemp Cleansing Oil to the market on January 30, 2023. The new product is specifically designed to effectively remove makeup and impurities from the skin. It is formulated using Hemp Seed Oil, which is known for its abundance of omega fatty acids, including 3, 6, and 9. The Hemp Cleansing Oil by Plum aims to not only cleanse the skin but also contribute to its repair and rejuvenation.
• On February 1, 2022, PepsiCo unveiled a hemp seed-infused drink under its Rockstar Energy brand. The aforementioned beverage combines the goodness of hemp seeds with lemon balm, spearmint, and caffeine. The product is available in three delicious flavors: passion fruit, blueberry, and raspberry cucumber. By incorporating hemp seeds into their energy drink, PepsiCo aims to cater to consumers seeking refreshing and invigorating beverages with added nutritional benefits.
• Irwin Naturals, a reputable company based in Canada, launched CBD 25mg Softgels on March 24, 2023. The new product is available exclusively through the Medicinal Medical Group platform across Canada. The CBD 25mg Softgels are offered in five different formulations to meet various consumer preferences. The formulations include 10 mg THC, 25 mg CBD; a 1:1 ratio of 10 mg CBD and 10 mg THC; a 3:1 ratio of 30 mg CBD and 10 mg THC; and a unique combination of THC and CBN (cannabinol) in a 2:1 ratio, consisting of 10 mg THC and 5 mg CBN. Irwin Naturals aims to provide consumers with a range of options to address their specific wellness needs through these CBD Softgels.

Why Purchase the Report?

• To visualize the global hemp oil market segmentation based on product, type, source, distribution channel, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of hemp oil market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global single-use packaging market report would provide approximately 77 tables, 78 figures and 196 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies