The global industrial hemp market size was valued at USD 6.63 billion in 2022. The market is projected to expand from USD 7.90 billion in 2023 to USD 31.98 billion by 2030 at a CAGR of 22.11% over the estimated period. The surge is driven by the increasing product demand across various applications. These include textiles, dietary supplements, foods, and food and beverage sectors.
Leading Players Featured in the Research Report:
Companies leading in Industrial Hemp Market Are 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)
Industry Value Affected on Account of Reduced Demand amid COVID-19 Pandemic
The coronavirus pandemic led to the shutdown of several businesses. While hemp cultivators and retailers continued their operation in the pharmaceutical space, the market growth was impacted by trading restrictions. However, the pandemic resulted in an increase in mental health issues among the population, elevating the dependency on medications, and reviving industry demand across various countries.
Conventional Segment to Register Notable Expansion Impelled by Soaring Affordability
On the basis of source, the market is subdivided into conventional and organic. The conventional segment is poised to grow at a considerable pace over the forecast period. The growth is propelled by the increasing product deployment in furniture, biofuels, bioplastics, and construction and materials sectors.
Hemp Fiber to Gain Traction Owing to Surging Application
Based on type, the market for industrial hemp is fragmented into hemp seed oil, hemp seed, hemp fiber, and others. The hemp fiber segment accounted for a dominating share in the global market and is set to register substantial growth throughout the study period. The rise is impelled by surging product adoption across an array of industries such as paper, automotive, and textile.
Textile Segment to Lead Due to Rising Adoption of Sustainable Practices
On the basis of application, the market is segmented into personal care & cosmetics, food (dietary and functional foods), pharmaceuticals, beverages, and others. The textile segment held a dominating share of the market and is poised to register an appreciable surge over the anticipated period. The expansion is on account of escalating consumer awareness regarding climate and environmental change.
Based on geography, the market for industrial hemp has been studied across Europe, North America, Asia Pacific, South America, and the Middle East & Africa.
Drivers and Restraints:
Surge in Market Value Driven by Growing Government Support and Escalating Legalization
Industrial hemp market growth is being driven by the increasing government support regarding the cultivation of the product. Hemp cultivation is further favored by soaring legalization in various countries.
However, the industry expansion could be hampered by strict regulations regarding the sale, marketing, and cultivation of the product in some countries.
Europe is dominating the Consumption of Industrial Hemp owing to Growing Legalization
Europe industrial hemp market share is touted to grow at a considerable pace over the study period. The surge is propelled by the surging product usage across an array of end-user sectors such as pharmaceuticals, cosmetics, construction materials, textiles, and others.
In North America, the U.S. and Canada dominate the market for industrial hemp. Meanwhile, demand across the Asia Pacific is slated to surge as awareness about the industrial uses of hemp rises.
Key Companies Ink Collaborations for Footprint Expansion
Leading industry participants are formulating and implementing a series of strategic initiatives for strengthening their business positions. These include acquisitions, merger agreements, partnerships, and others. Additional steps include the formation of alliances, R&D activities, and the launch of new products.
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