Global Industrial Hemp Market was valued at US$ 5.8 billion in 2020 and is anticipated to reach US$ 30.4 billion by 2027 displaying an elevated CAGR of 27% over the forecast period (2021-2027). Industrial hemp is a botanical class of Cannabis Sativa grown specifically for industrial or medicinal uses which can be used for making a wide range of products. It is one of the fastest-growing plants on earth and one of the first plants to be spun into usable fiber 50,000 years ago.
With the growing applications of industrial hemp and the wide adoption of hemp products, there has been a surge in the production of industrial hemp plants across the globe which in turn is driving the growth of the market. For instance, in 2019, the European countries produce around 25% of the world’s hemp supply. Amongst them, 40% of this volume was accounted for by France alone at the same time. Also, in the United States, 78,176 licensed acres of hemp were recorded in 2018. Furthermore, the growing geriatric population coupled with the increase in the number of chronic diseases is further expected to propel the growth of the market across the globe. For instance, according to WHO, 41 million people die every year because of non-communicable diseases accounting for 71% of all deaths all over the world.
The industrial hemp market is growing exponentially on account of growth in the legalization of hemp cultivation and changing attitudes of public opinion for the legalization of marijuana. For instance, as per a survey conducted, over the past decade, 2/3rd of Americans agreed that the use of cannabis should be legal while 59% agreed that it should be legal for both medical and recreational purposes and 32% says marijuana should be legal only for medical purposed. In addition to this, with the booming cannabis market across the globe, this industry is creating a greater number of jobs than any other industry in the U.S. For instance, as per Leafly & Whitney Economics, over 64,000 cannabis jobs were created in 2018 alone.
Hempco, Hemp Inc., Bombay Hemp Company, HempFlax Group B.V., Manitoba Harvest Hemp Foods, Plains Industrial Hemp Processing Ltd., Ecofibre, GenCanna, Aurora Cannabis Inc., Marijuana Company of America, Inc., are some of the prominent players operating in the industrial hemp market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with new and innovative products.
Insights Presented in the Report
“Amongst Type, hemp seeds segment holds the major share”
Based on type, the market is fragmented into hemp seed, hemp oil, hemp fiber, and others. The hemp seed segment generated revenue of USD XX billion in 2020 and is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027F. The growth of this segment is attributed to the growing awareness regarding the nutritional value of hemp seeds as they are rich in healthy fats and essential fatty acids. For example, as per the USDA National Nutrient Database, a 2-tablespoon serving of hemp seed contains 6.31g of protein and 1.73g of carbohydrates. However, the hemp fiber segment is also anticipated to grow with a considerable CAGR of XX% during the forecast period.
“Amongst Application, Food & Beverages segment holds the major share”
Based on application, the market is fragmented into food & beverages, textiles, personal care products, pharmaceuticals, and others. The food & beverages segment generated revenue of USD XX billion in 2020 and is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027F owing to the growing adoption of hemp-based food products leading to the increase in sales of such food products. For instance, in the U.S., the sales value of hemp-based food was nearly USD 137 million, and this figure is predicted to rise to USD 186 million by 2022. However, the personal care products segment is also anticipated to grow at a considerable CAGR during the projected timeframe.
“Amongst Source, conventional segment holds the major share”
Based on the source, the market is fragmented into conventional and organic. The conventional segment generated revenue of USD XX billion in 2020 and is expected to grow at a CAGR of XX% during the forecast period to reach a market valuation of USD XX billion by 2027F owing to its growing consumption in the textile and paper industry. Also, the hemp produced by the conventional source is cheaper as compared to that obtained by organic sources which in turn is also driving the growth of this segment. However, the organic segment is also anticipated to garner significant market growth in the upcoming years owing to the rising adoption of organic methods for obtaining industrial hemp.
“Asia-Pacific represents one of the largest markets of industrial hemp market”
For a better understanding of the market dynamics of the industrial hemp market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Spain, United Kingdom, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC), Rest of World has been conducted. Asia-Pacific dominated the market and generated revenue of US$ XX million in 2020 owing to the widespread production and consumption of hemp products in textile and paper industry.
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