Industrial Hemp Market is segmented By Product Type (Hemp Seed (Hemp Seed Oil, Hemp Fiber, CBD Hemp Oil, Others)), By Source (Organic, Conventional), By Application (Food (Snacks & cereals, Soup, sauces, and seasonings, Bakery, Dairy & frozen desserts, Others), Beverages (Hot beverages, Sports & energy drinks, Ready to drink, Others), Personal care products, Textiles, Pharmaceuticals, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Industrial Hemp Market Overview
Industrial Hemp Market is expected to grow at a CAGR of 13.1% during the forecast period (2024-2031).
Industrial hemp is referred to as an agricultural commodity including the stalk, seeds, oil, and leaves of the cannabis Sativa plant. These materials are used for producing including building materials, textiles, paper products, personal care items, health supplements, and others. Industrial hemp is the most durable, longest-lasting, and strongest of the natural fibers. Industrial hemp is also widely used in food & beverages, nutritional supplements, animal feed, and animal feeds.
Industrial Hemp Market Summary
|
Metrics |
Details |
|
Market CAGR |
13.1% |
|
Segments Covered |
By Product Type, By Source, By Application and By Region |
|
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
|
Fastest Growing Region |
Asia Pacific |
|
Largest Market Share |
North America |
To Get a Free Sample Click here
Industrial Hemp Market Dynamics
The market is driven by the rising demand for hemp oil and fibers in the automotive, construction, food and beverage, personal care, and textile industries. There is a growing demand for hemp-based oil paints, varnishes, printing inks, fuel, solvents, chain-saw lubricants, putty, and coatings.
The rise in the launch of the novel hemp drying system shall stimulate market growth. For instance, in July 2019, Hemp, Inc had launched the innovative hemp flower drying system for smokable hemp flowers. The hemp flower drying system is highly efficient and compact. It is the fast hemp flower drying system that is capable of drying in only 3 days as opposed to the traditional 7 days while maintaining the critical terpene profile of the product.
There is an increase in the launch of the end products derived from hemp. For instance, in April 2020, CanaFarma Hemp Products Corp had launched the new hemp oil-infused cream under its Yooforic brand. Yooforic Hemp Oil Infused Cream for Joint & Muscle support is comprised of premium ingredients that target inflammation, chronic joint, and muscle soreness. It is the light aromatic botanical blend is designed to help soothe tired muscles and joints on contact. The creamy gel-like texture is light and airy, and the cream absorbs at the dermis level without leaving a greasy residue.
In February 2020, GreenWay Herbal Products, LLC had launched the Tanasi, a line of hemp-derived cannabinoid products. Each product is specially formulated using a patent-pending CBDA/CBD formula developed at one of the world’s leading plant-science university research labs investigating botanical medicine and health. Tanasi’s product line is currently comprised of 22 different products including hemp-derived full spectrum tinctures, capsules, lotions, salves, a water-soluble drink concentrate, and red Panax ginseng extract capsules.
However, the lack of standard harvesting and cultivation techniques is hindering the market growth. There is a lack of proper planting & harvesting equipment. The United States lacks commercial-scale processing facilities. The countries have different levels of legalization for different types of hemp. The strict regulatory norms that vary as per the country are hectic for the manufacturers to cope up with these regulations. For instance, the United States has defined various legal policies that include the licensure of growers, regulation, and certification of seeds, state-wide commissions, and legal protection of growers.
Industrial Hemp Market Segmentation Analysis
The global industrial hemp market is segmented based on product type as hemp seed, hemp seed oil, hemp fiber, CBD hemp oil, and others. The hemp fiber segment accounts for the highest market share as there is increasing usage of the hemp fiber for manufacturing several construction and insulation materials such as fiberboard, cement blocks, coatings, putty, roofing underlay, acoustic materials, house wrap, pipe wraps, and shingles. Hemp fiber is widely used in the textile and pulp & paper industry as it is a long and robust fiber in comparison to cotton. There is increasing usage of hemp fiber in various industries including construction, animal bedding, agriculture, furniture, and automobile. The hemp fiber is useful for extracting biofuels and bioplastics. The hemp fiber is also used for providing residential insulation.
The CBD hemp oil segment is expected to have positive market growth due to the CBD hemp oil is useful for the prevention of anxiety, depression, pain, and acne. Several manufacturers are using CBD hemp oil for the development of the hemp oil in personal care products, health supplements, and food & beverages. The hemp oil has high nutritional content, including proteins, fatty acids, and several other ingredients.
Further, the market is also classified based on the application as food, beverages, personal care products, textiles, pharmaceuticals, and others. The food segment accounts for the highest market share due to the high usage of hemp especially the hemp seeds and hemp seed oil for food as hemp is rich in vitamin, protein, calcium, magnesium, and potassium, omega-6, and omega-3 fatty acid content. Several people consume hemp seeds raw or as a topping in cereals, smoothies, and yogurt. These are low in saturated fats and contain no trans-fat. The hemp seeds and oil are used in several food manufacturing processes. Hemp seeds are used in salad oil, margarine, protein flour, dairy alternative. The growing awareness regarding the nutritional value of hemp shall boost the demand for hemp for the food industry.
Industrial Hemp Market Geographical Share
By region, the global industrial hemp market is segmented into North America, South America, Europe, Asia-Pacific, Middle-East, and Africa. Among all of the regions, Asia-Pacific dominated the global industrial hemp market and is expected to grow at the highest CAGR during the forecasted period owing to the exhaustive production and consumption of the hemp in the various industries. There is higher usage of hemp for cosmetics and personal care products, and food & supplements. China accounts for the highest market share of XX% as it is the largest producer of industrial hemp products. China is comprised of well-established distribution facilities for natural fibers. There is the presence of a large number of companies with their manufacturing & spinning facilities in China due to the presence of cheap and skilled labor. The market is dominated by the presence of cost-effective products. The increasing domestic income and purchasing power of the people shall fuel the market growth.
Europe is expected to have positive market growth due to the growing demand for hemp products in the food and supplements, cosmetics, and personal care markets. The hemp seeds as food are consumed in smoothies, yogurt, cereals, and bars. There is high awareness regarding the nutritional benefits of consuming hemp. The increasing legalization of industrial hemp in the European region shall boost the demand for hemp products over the forecasted period.
Industrial Hemp Companies and Competitive Landscape
The global industrial hemp market is highly competitive with the presence of several international and local markets. Product diversification, revenue generation, and opportunities intensify the market competition. Ecofibre, Hemp Inc., Gencanna, Hempflax BV, Hemp Oil Canada, Canah International, Hemp Poland are the leading market players with significant market share.
The major players are using product development, novel product launches, market expansion, and product diversification strategies for holding their position in the market. For instance, in May 2020, Hempyre Holdings Ltd. had launched the global distribution platform of branded hemp-formulated consumer packaged goods focused on beauty, beverage, and wellness.
The companies are entering into collaborations, mergers, strategic partnerships, and acquisitions to increase the demand for industrial Hemp and their expansion across the globe. For instance, In May 2020, HempFlax International Ltd had acquired the Thermo-Natur, a German company that makes insulation from natural fibers. The acquisition includes Thermo-Natur’s existing operations as well as licensing, brand, and product certifications. It accelerates HempFlax’s strategy to integrate its business and own even more of the hemp value chain in a vertically integrated model based on whole-plant processing.
In February 2020, Abacus Health Products, Inc had acquired the principal assets of the companies owning the Harmony Hemp brand for an aggregate consideration of US$5.5 million. Under the terms of the agreement, Abacus would be expanding its retail footprint by approximately 50% to over 12,000 retail locations and have, to the best of management’s knowledge, the largest retail footprint of topical CBD and hemp-infused products in the United States.
In January 2019, Hemp Inc. had entered into a joint venture with Hemp Healthcare (US) to sell high-end CBD and hemp-based products. It would help to increase the company’s presence in Arizona, United States. In December 2018, Atalo Holdings Inc. had entered into a strategic partnership with GenCanna Global USA for creating the largest vertically integrated hemp-derived CBD production, processing, and distribution alliance in Kentucky. The partnership would provide industry leadership, proprietary hemp genetics, proven agronomic systems, and expanding processing capacity that meets or exceeds Good Manufacturing Practices (GMP), as well as the highest FDA standards for premium-quality bulk and finished goods.
Several companies are raising the investment for the expansion of their processing facility. For instance, in October 2019, GenCanna Global USA, Inc. would expand its processing facility with a setup of a processing facility in Kentucky with an investment of USD 40 million
