The global industrial hemp market, valued at USD 7.90 billion in 2023, is poised for substantial growth, with projections indicating it will rise from USD 9.47 billion in 2024 to USD 47.82 billion by 2032. This impressive expansion, marked by a compound annual growth rate (CAGR) of 22.44%, is largely fueled by the legalization of medical cannabis in over 30 countries, including Australia, Argentina, Colombia, Brazil, Canada, Ireland, Germany, and Denmark.
One of the key factors driving this growth is the increasing demand for industrial hemp across diverse industries such as food and beverage, textiles, and dietary supplements. Hemp's nutritional benefits and eco-friendly attributes have made it increasingly popular among health-conscious consumers. The growing focus on health and wellness is boosting the demand for hemp-based food products, supplements, and hemp oil. Hemp oil, in particular, is gaining traction in the cosmetics and personal care sectors due to its antioxidant properties. This shift toward health-focused products is a major catalyst for the ongoing expansion of the industrial hemp market.
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 source. The conventional segment is expected to witness significant growth in the coming years, driven by its expanding applications in industries such as paper, textiles, and automotive.
Among product types, the hemp fiber segment is poised for substantial growth, largely due to its increasing adoption in the automotive and textile industries. The market is further segmented into hemp seed oil, hemp seeds, hemp fiber, and other products, with hemp fiber projected to experience notable expansion during the forecast period, particularly due to its rising use in paper, automotive, and textile manufacturing.
The growing focus on sustainability is expected to further elevate the importance of the textile segment within the hemp market.
In terms of applications, the market is categorized into pharmaceuticals, beverages, food (including functional and dietary foods), personal care and cosmetics, and other products. The textile industry commands a significant market share and is anticipated to grow substantially, driven by increased consumer awareness of climate change and sustainability.
Geographically, the industrial hemp market is analyzed across key regions, including Asia Pacific, Europe, North America, South America, and the Middle East and Africa.
Report Coverage:
The report provides an in-depth analysis of the key drivers, challenges, and factors shaping the growth of the industrial hemp market. It highlights major market trends and evaluates the impact of the COVID-19 pandemic on product sales. Furthermore, the report details the strategic initiatives and actions taken by leading companies to secure a competitive advantage 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 largely driven by rising demand for hemp-based products across various sectors, including food, medicine, and textiles. Additionally, the increasing need for hemp fiber processing in several countries is further supporting this upward trend.
However, the market's expansion could be hindered by stringent regulations surrounding the production, distribution, and marketing of industrial hemp. These regulatory challenges may slow the pace of growth despite the strong demand.
Regional Insights:
Due to the region's increasing product consumption, Europe is the leading region.
During the study period, Europe's industrial hemp market is expected to experience substantial growth, driven by increasing demand for hemp products across the region. Likewise, the Asia Pacific market is projected to see significant expansion, primarily due to the widespread use of hemp in paper and textile manufacturing industries.
Competitive Landscape:
Big Businesses Form Partnerships to Boost Their Market Position
Key players in the industrial hemp market are actively pursuing various strategic initiatives to strengthen their market positions. These efforts include forming alliances, entering partnership agreements, and engaging in collaborations. Additionally, acquisitions, mergers, and similar strategies play a crucial role in expanding their market presence and enhancing competitiveness.
Key Industry Development
February 2023 - Alcott Enterprises, a managed services and IT consulting firm, has formed a partnership with Flourish Software. The primary goals of this agreement are to provide hemp companies with enhanced implementation services, technical support, expertise, 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)
