Industrial Hemp Market size is set to grow by USD 13.90 billion from 2024-2028, High demand from the textile industry to boost the market growth, Technavio

NEW YORK, Aug. 13, 2024 /PRNewswire/ -- The global industrial hemp market size is estimated to grow by USD 13.90 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 25.25% during the forecast period. High demand from the textile industry is driving market growth, with a trend towards growing strategic collaboration, partnership, and M and A. However, challenges associated with the production of hemp poses a challenge. Key market players include Aurora Cannabis Inc., Bombay Hemp Co. Pvt. Ltd., Boring Hemp Co., Canopy Growth Corp., Charlottes Web Holdings Inc., CV Sciences Inc., Deep Nature Project GmbH, Dun Agro Hemp Group, Ecofibre Ltd., Elixinol Wellness Ltd., GFR Ingredients Ltd., Hanma Investment Group Co. Ltd., Hemp Horizons Private Limited, HempFlax Group BV, HemPoland Sp zoo, Liaoning Qiaopai Biotech Co. Ltd., Medical Marijuana Inc., Nutiva Inc., Parkland Industrial Hemp Growers Co op. Ltd., and Tilray Brands Inc..

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Key Market Trends Fueling Growth

Vendors in the industrial hemp market are implementing strategic business moves to expand their market share and global presence. These strategies include collaborations, partnerships, and mergers and acquisitions. For instance, in February 2024, Aurora Medicine UK formed a partnership with Script Assist, granting access to their platform for high-quality medication. Additionally, Aurora acquired MedReleaf Australia in the same month. These strategic maneuvers will boost the growth of the global industrial hemp market during the forecast period. 

The industrial hemp market is booming in the modern economy as a clean alternative to fossil fuels, offering economic benefits and environmental conservation. A recent roundtable discussion brought industry professionals together to explore trends in hemp farming and applications. Hemp is used in multiple industries, including dietary supplements, biofuels, bioplastics, cellulose fibers, and food and beverages. Hemp seeds and stalks are rich in linoleic acid, gamma linolenic acid, lipids, carbohydrates, insoluble fiber, and fiber. Hemp-derived products offer solutions for various consumer needs, such as pigmentation, ageing, redness, inflammation, hair fall, and more. As vegan consumers grow, hemp's eco-friendly and renewable status as a clean energy source becomes increasingly important in addressing the climate crisis. 

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Market Challenges

• The industrial hemp market faces production challenges due to specific climate requirements and regulatory issues. Hemp farming necessitates a mild climate, humid atmosphere, minimum annual rainfall of 25-30 inches, well-drained loam soils, and compacted soil. Farmers often encounter difficulties distinguishing between hemp and marijuana, as they share similar genetic traits. Marijuana, which contains high THC levels, is illegal in many countries, including the US, making hemp farming a complex issue. Hemp's THC content is only 0.3%, while marijuana ranges from 3% to 15%. This ambiguity between hemp and marijuana can hinder production rates, ultimately impacting the growth of the global industrial hemp market.
• Industrial hemp is a versatile crop with growing applications in various industries, including biofuel, bioplastic, and cellulose fibers. Hemp's linoleic acid and gamma-linolenic acid make it a sought-after ingredient in vegan consumer products. However, challenges persist, such as high input costs, pesticide use, and weather conditions affecting crop yield. Hemp seeds and stalks provide valuable oils, carbohydrates, insoluble fiber, and lipids. Hemp fibers are used to make textiles, paper, and composites, while hempseed oil and hemp oil are used in food, pharmaceuticals, and supplementary nutrition. Companies like HempMeds, HempFlax, and HempFlax's Dutch headquarters are leading the way in hemp cultivation and machinery improvements. Breakthroughs in utilizing hemp stalks, seeds, roots, and leaves for industrial applications continue, offering agricultural and environmental benefits. The sustainable and cheap nature of hemp makes it an attractive alternative to traditional materials.

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Segment Overview 

This industrial hemp market report extensively covers market segmentation by

1. Product 
• 1.1 Seeds
• 1.2 Fiber
• 1.3 Shivs
2. Application 
• 2.1 Textile
• 2.2 Food and beverages
• 2.3 Personal care
• 2.4 Animal care
• 2.5 Others
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Seeds- The industrial hemp seeds market holds a substantial share in the global industrial hemp market. Hemp seeds are a valuable source of protein and essential fatty acids, making them a preferred ingredient in food and beverage products like hemp milk, hemp oil, and hemp protein powder. The increasing trend towards plant-based diets significantly boosts the demand for hemp seeds worldwide. Two primary types of hemp seeds exist in the market: organic and conventional. Consumers increasingly opt for organic hemp seeds due to their preference for organic and natural food items. These seeds are free from harmful chemicals and pesticides, making them a healthier alternative. The organic hemp seeds segment is further divided into hulled hemp seeds, or hemp hearts, and whole hemp seeds. Hemp hearts are popular due to their nutty taste and high nutritional value, while whole hemp seeds are appreciated for their high fiber content and versatility. Hemp seed oil is another significant application area, used in food and cosmetic products for its moisturizing properties and rich essential fatty acid content. In summary, the industrial hemp seeds market is experiencing growth due to the rising demand for organic and plant-based products. The nutritional benefits and versatility of hemp seeds make them an essential ingredient in various food and beverage items, contributing to the expansion of the seeds segment in the global industrial hemp market.

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The global Cannabidiol (CBD) market is experiencing rapid growth, driven by increasing consumer awareness of CBD's therapeutic benefits and its applications in wellness and skincare. Valued at $5.2 billion in 2023, the market is projected to expand at a CAGR of 22.4% through 2030. North America leads the market, fueled by supportive regulations and high demand, while Europe and Asia-Pacific are emerging as significant regions. Key players include Charlotte's Web, Medterra, and CBDistillery. With evolving legislation and expanding product lines, the CBD market is set for continued expansion.

Research Analysis

Industrial hemp is a versatile plant with applications in various industries, including biofuel, bioplastic, cellulose fibers, and pharmaceuticals. Hemp contains valuable components such as linoleic acid, gamma linolenic acid, lipids, carbohydrates, insoluble fiber, and protein. These nutrients make hemp an attractive alternative for vegan consumers. However, the production of hemp involves considerations such as input costs, weather conditions, and the use of pesticides. Hemp fibers are used to produce textiles, paper, and composites, while hempseed oil and hemp oil are used for nutritional supplements and cosmetics. Hemp biofuel is a renewable energy source, while bioplastics made from hemp offer a sustainable alternative to traditional plastics. Hemp cellulose fibers are also used to produce various industrial products. The agricultural benefits of hemp include its ability to improve soil health and reduce the need for synthetic fertilizers. Additionally, the environmental benefits of hemp include its ability to sequester carbon, reduce greenhouse gas emissions, and provide habitat for beneficial insects. Machinery improvements and research in hemp cultivation continue to drive innovation in the industry, making it an exciting area for investment and growth. As the demand for sustainable and eco-friendly products continues to rise, the future of industrial hemp looks bright.

Market Research Overview

Industrial hemp is a versatile plant with a wide range of applications in various industries. It is sourced from the stalks, seeds, and roots of the hemp plant. The seeds are rich in nutritious components like proteins, lipids, carbohydrates, insoluble fiber, and essential fatty acids such as linoleic acid and gamma-linolenic acid. Hemp fibers are used to produce biofuels, bioplastics, cellulose fibers, and other industrial products. Hemp oil, derived from hemp seeds, is a primary ingredient base for dietary supplements, cosmetics, and pharmaceuticals. Hemp fibers are also used in the production of textiles, paper, and construction materials. Hemp cultivation offers agricultural benefits, including improved soil health and environmental benefits by sequestering carbon and reducing the need for pesticides. The modern economy is increasingly turning to hemp as a sustainable, cheap, and clean alternative to fossil fuels and traditional plastics.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Seeds
• Fiber
• Shivs
• Application
• Textile
• Food And Beverages
• Personal Care
• Animal Care
• Others
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

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SOURCE Technavio