Share on

Global Industrial Hemp Market Size, Share, Trends, COVID-19 Impact & Growth Analysis Report - Segmented By Type, Application and Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa) - Industry Forecast (2022 to 2027)

Published: January, 2022
ID: 10731
Pages: 190
Formats: report pdf report excel report power bi report ppt

Industrial Hemp Market Size (2022 to 2027)

The global industrial hemp market size is forecasted to be worth USD 18.87 Billion by 2027 from USD 6.13 billion in 2022, growing at a CAGR of 25.2% from 2022 to 2027.

The usage of industrial hemp has been significantly increasing in healthcare, fabrics and textiles, meals and beverages, cosmetics and personal care products, nutritional supplements, paper, yarns, and spun fibers, construction materials, and other products since the last few years. Industrial hemp's high mechanical qualities, produced using environmentally benign procedures, are primarily employed in automotive applications for specialty pulp and paper, insulating materials, and bio-composites. Even though they are both cultivars of the Cannabis sativa L. species, industrial hemp is not the same as marijuana. On a dry-weight basis, marijuana contains 3 to 15% THC (tetrahydrocannabinol), whereas industrial hemp contains less than 1%.

Impact of COVID-19 on the global industrial hemp market:

COVID-19 impacted the market in 2020. Lockdowns are being used to combat the COVID-19 pandemic, which has halted manufacturing and construction. COVID-19's outbreak had several short-and-long-term implications in the building industry. First, the lockdown harmed manufacturing in the country and will exacerbate the ongoing manufacturing slump and trade uncertainty. Second, though the pandemic had little impact on the food and beverage industry's operations compared to other sectors, the industry's worldwide supply chain was severely impacted, limiting the industry's expansion. Finally, in 2020, trade restrictions worldwide had changed the demand-supply equation for hemp materials, reducing market growth.

MARKET DRIVERS:

Due to its use in personal care, food and beverage, textiles, and biocomposite industries, the global industrial hemp market is predicted to expand significantly.

One other key factor driving the market expansion in the food and beverage sector is hemp oil's high essential fatty acid content, which prevents and alleviates diseases. In addition, industrial hemp is a highly renewable resource. Consumers' increased preference for natural products is a significant driver for the worldwide Industrial Hemp market. Industrial hemp has a variety of uses, including papermaking, textiles, biodegradable plastics, fuel, building, and healthy food. Due to the growing desire for lightweight automobiles, hemp bio-composites are in high demand for interior applications such as door panels, trunk liners, spare wheel covers, headliners, and parcel trays.

The rise in the number of chronic diseases and the rapid expansion of industrial hemp's functional characteristics are driving the market for industrial hemp forward.

Furthermore, the rising legalization of industrial hemp cultivation in developed and developing nations is predicted to expand industrial hemp production and consumption market opportunities. Due to the growing desire for lightweight automobiles, hemp bio-composites are in high demand for interior applications such as door panels, trunk liners, spare wheel covers, headliners, and parcel trays.

MARKET RESTRAINTS:

Over the forecast period, factors such as the complex regulatory system for the use of industrial hemp are expected to restrict market expansion globally. While different countries have varying levels of legalization for various forms of hemp, producers and stakeholders may find it challenging to comply with the strict regulatory requirements governing the production and sale of industrial hemp in different states within the same country. In addition, a lack of suitable planting and harvesting equipment has existed. Due to the fragility of hemp, air seeders that are used for sowing the crop must be used with a low air volume.

REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2021 to 2027

Base Year

2021

Forecast Period

2022 to 2027

Segments Covered

Based on type, application, and region

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, Drivers, Restraints, Opportunities, Challenges, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, Asia Pacific, Latin America, Middle East & Africa

 

This research report on the global industrial hemp market has been segmented and sub-segmented based on the type, application, and region.

Industrial Hemp Market - By Type:

  • Hemp seed
  • Hemp seed oil
  • CBD hemp oil
  • Hemp fiber

Based on the type, the hemp fiber segment dominated the global market for industrial hemp in 2020. Due to its more extended and more strong fibers than cotton, hemp fiber is primarily employed in the textile, pulp, and paper industries. Furthermore, because it is a renewable resource, its use grows in various sectors, including building, animal bedding, agriculture, furniture, and automobiles. In addition, its demand is predicted to rise in the coming years as it is used to make biofuels and bioplastics.

Industrial Hemp Market – By Application:

  • Food
    • Snacks & cereals
    • Soup, sauces, and seasonings
    • Bakery
    • Dairy & frozen desserts
    • Others (cold cereals, pasta, chocolate spreads, and pet food)
  • Beverages
    • Hot beverages
    • Sports & energy drinks
    • Ready to drink
    • Others (meal replacement drinks, beverage mixes, beverage concentrates, and juice drinks)
  • Personal care products
  • Textiles
  • Pharmaceuticals
  • Others (paper, automobiles, construction & materials, furniture, and pet food)

During the forecast period, the pharmaceuticals segment is projected to grow at a lucrative growth rate.

In 2020, the textiles application segment did well. Over the forecast period, increased demand for consumer textiles such as clothes, fabrics, denim, fine materials, and industrial textile products such as twine, rope, nets, canvas bags, tarps, carpets, and geotextiles is expected to fuel market growth. Fabrics and textiles, yarns and spun fibers, carpeting, home furnishings, construction products, paper, insulating materials, automobile parts, and composites are just a few of the uses for hemp fibers. In addition, Hurds are used in the production of animal bedding, oil absorbents, and paper. Hemp seeds and oil cakes are utilized in food and beverages and food and feed as an alternative protein source.

Between 2021 to 2026, the food segment is also anticipated to register a healthy CAGR.

Industrial Hemp Market – By Region:

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East
  • Africa

Geographically, Asia Pacific led the global industrial hemp market in 2020, accounting for over half of all revenue. Increasing global demand for industrial hemp, as well as advances in technology and innovation, are making harvesting easier for growers, transforming the region's hemp-producing landscape. In 2020, China was the world's leading producer and exporter of industrial hemp, hemp products, and end-use items such as paper and textiles. Industrial hemp is grown in more than 20 Chinese provinces, with Heilongjiang, Yunnan, Shanxi, and Anhui leading the way. The presence of major firms and the use of hemp in manufacturing activities are expected to boost product demand.

Over the forecast period, the North American region is expected to increase at the quickest rate. Because of an increasing geriatric population and increased consumer awareness, the market for industrial hemp has been growing in countries like Canada and the United States. Furthermore, as worries about skin diseases and the number of chronic diseases increase, the market for industrial hemp is expected to grow. In addition, the market is predicted to rise due to greater awareness of the oil's dietary benefits and increased demand from the cosmetics and personal care industries. Over the forecast period, the market is likely to be driven by implementing favorable laws pertaining to the production and usage of hemp-based products in the United States.

Due to a surge in hemp seed consumption and their full utilization in various food products such as smoothies, yogurt, cereals, and bars, the European region is expected to develop at the fastest CAGR, particularly in Germany and the Netherlands. Furthermore, as people become more aware of the nutritional benefits of hemp consumption, demand for hemp-based food and personal care products is likely to rise.

Although Latin America, the Middle East, and Africa have smaller shares of the industrial hemp market, they are likely to rise rapidly over the forecast period.

KEY MARKET PARTICIPANTS:

Some of the notable companies dominating the global industrial hemp market profiled in this report are Hempco, Ecofibre, Hemp Inc., Gencanna, Hempflax BV, Konoplex Group, Hemp Oil Canada, BAFA, Hemp Poland, Dun Agro, Colorado Hemp Works, Canah International, South Hemp Tecno, Plains Industrial Hemp Processing and MH Medical Hemp.

RECENT HAPPENINGS IN THIS MARKET:

  • Hemp Inc. introduced Diamonds, a new cannabidiol (CBD) product, in October 2020 that is derived from golden-hued high CBD and delivers the same effects as 92 percent and 98.7% pure CBD.
  • Hemp Inc. formed a joint venture with Hemp Healthcare (US) in January 2019 to market high-end CBD and hemp-based goods, boosting the company's position in Arizona.
  • GenCanna and Atalo Holdings (US) announced cooperation in Kentucky in May 2019 to establish a vertically integrated hemp processing and distribution facility.

Please wait. . . . Your request is being processed

Related Reports

Access the study in MULTIPLE FORMATS
Purchase options starting from $ 2500

Didn’t find what you’re looking for?
TALK TO OUR ANALYST TEAM

Need something within your budget?
NO WORRIES! WE GOT YOU COVERED!

REACH OUT TO US

Call us on: +1 888 702 9696 (U.S Toll Free)

Write to us: sales@marketdataforecast.com

Click for Request Sample