North America Industrial Hemp Market

North America Industrial Hemp Market Size (2024 to 2029)

The size of the North American industrial hemp market is forecasted to grow at a CAGR of 24.52% from 2024 to 2029 and be worth USD 9.83 billion by 2029 from USD 3.29 billion in 2024. In this region, the U.S. industrial hemp market is estimated to lead during the forecast period.

Increasing support from the North American government authorities in legalizing the cultivation of hemp crops in most countries is accelerating the growth rate of the market. The hemp-based products have many applications in the industries such as automotive, personal care, and many others, which are ascribed to boost the market demand. Focusing on the continuous production of hemp oil to improve the applications in various sectors is escalating the demand of the market to an extent. Also, in developed countries like the United States and Canada, there is a huge consumption of industrial hemp in food and beverages which is propelling the growth rate of the market. Also, it is believed that the use of hemp seed oil in cancer treatment can slow the growth of tumor cells. This attribute is ascribed to fuel the demand of the market. To treat epilepsy and sleep disorders, hemp plays a vital role, which is anticipated to increase the demand to cultivate more crops in the coming years. The rise in awareness among people over the utilization of industrial hemp according to climatic conditions is elevating the growth rate of the market.

However, the lack of complete knowledge in utilizing hemp products in different ways is slowly hampering the growth rate of the market. Also, risk factors on the usage of high dosage in the medical sector impede the demand of the industrial hemp market in North America. Ban on the usage of hemp oil-based products in some countries is limiting the growth rate of the market.

Impact of COVID-19 on the industrial hemp market in North America:

World Health Organization (WHO) declared the COVID-19 as a health emergency in March 2020. The world is fighting against the COVID-19 pandemic by taking preventive measures. Due to lockdown restrictions, every sector was disrupted in various ways. Ban on the movements and restrictions on the travel, there will be less supply chain of hemp during the first half of 2020. With the surge in the number of COVID-19 cases and increasing hemp benefits among sleep disorders people, there is a great surge in the market shares. In 2022, the market shares are estimated to grow at a faster rate. In the US, COVID-19 cases are increasing rapidly were many key players are researching the development of a drug or vaccine using industrial hemp.

This research report on the North American industrial hemp market has been segmented & sub-segmented into the following categories:

North America Industrial Hemp Market - By Type:

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

North America 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)

North America Industrial Hemp Market - By Country:

• The United States
• Canada
• Rest of North America

Geographically, North America leads with the largest shares of the market among all the regions. Increasing government initiatives and the launch of new products are greatly influencing the growth rate of the market in this region. The US is ruling with the dominant shares of the market owing to the rising incidences of chronic diseases. The increasing consumption rate of hemp-based products in the textile industry is also elevating the growth rate of the market. Along with this, the introduction of hemp seed oil into the vegan diet, which is high in proteins, is prompting the growth rate of the market.

Canada is next to the US in leading the significant shares of the market. 25% of the acreage was industrial hemp in Canada, a major attribute for the market to grow in this country.

KEY MARKET PLAYERS:

Some of the companies playing a leading role in the North American Industrial Hemp market are Hempco, Ecofibre, Hemp Inc., Gencanna, Hempflax BV, Konoplex Group, Hemp Oil Canada, BAFA, Hemp Poland, Dun Agro, Colorado Hemp Works, and Canah International.