Industrial Hemp Market Report: By Type (Hemp Seed, Hemp Oil, Hemp Fiber, CBD Hemp Oil), Application (Food, Textiles, Beverages, Personal Care Products, Pharmaceuticals), Source (Conventional, Organic), Farm (Outdoor, Indoor) - Global Industry Size Analysis, and Growth Forecast to 2030

Market Overview

In 2021, the global industrial hemp market size was valued at $4,452.0 million, and it is projected to progress at a CAGR of 33.7% during 2021–2030. The market is mainly driven by the surging need for industrial hemp in end-use sectors and the increasing legalization in the cultivation of industrial hemp.

Earlier hemp was used for various industrial applications, including paper, textiles, and cordage. Over time, the use has evolved into an even greater variety of products, including health foods, organic body care, clothing, construction materials, biofuels, plastic composites, and more.

Moreover, the demand for industrial hemp for personal care products is increasing, as it hydrates the skin for a longer period. Moreover, omega and vitamin-rich hemp seed oils provide a soothing effect on the skin, which helps reduce various skin disorders. In personal care products, hemp is used in oil balms, body wash, scrubs, soaps, and others. Moreover, it plays a major role in maintaining physical health, as it contains omega-3 and omega-6 essential fatty acids, fibers, antioxidants, and other essential substances, which are helpful for physical health.

With the breakout of COVID-19, the majority of countries implemented lockdowns and curfews, which had a significant impact on people's lifestyles, health, and well-being, as well as on the manufacturing industry, thereby negatively affecting the market growth.

Hemp Fiber Is Mostly Used for Making Clothes

Hemp fiber accounted around 37% share in the market in 2021. The demand for this fiber is high, due to its properties such as strong, flexible, and low density. Moreover, it is used for making clothes, fiberboard, compost, animal bedding, paper, and composites.

The fiber is widely used in making clothes, as it triples the tensile strength of cotton. It blends easily with other fibers to produce a hybrid material, and this technique retains the strength of the fibers while adding the comfort of softer, and makes refined fabrics. Also, it is a good material for making ropes and cords because it has good tensile strength. As it is easily cultivable and a versatile cash crop, the hemp fiber can be easily used as a raw material to produce paper of good quality.

Pharmaceutical Industry Uses Hemp in High Amount

The demand for hemp in the pharmaceutical industry is projected to witness the highest CAGR, of around 35%, during the forecast period. This can be attributed to its properties such as pain-relieving, anti-inflammatory effects, and the possibility of curing tumors, lowering diabetes risk, and easing stiffness and discomfort. Moreover, the market in this category is growing, due to the aging and expanding population, as well as emerging medical issues, which are expected to promote the product demand for pharmaceutical applications.

Conventional Type Has Stronger Presence

The conventional type category held the larger market share, of more than 55%, in 2021. The conventionally grown hemp has a stronger presence in the market, due to its low price. Also, it does not require stringent inspection or follow necessary guidelines to meet the certified organic standards, which makes the production process faster. Apart from this, it is rich in vitamins and other essential fatty acids.

Cultivation of Industrial Hemp Is Legalized

Hemp is increasingly used as a fiber and oilseed for the manufacturing of a wide range of consumer and industrial products all over the world. Cannabis sativa L. is used to make industrial hemp, which is not marijuana but a different variation of the same species. The U.S. took numerous measures in the 2018 Farm Bill (the federal government's agricultural and food policy tool) to legalize hemp production as an agricultural commodity and remove it from the list of controlled narcotics; nonetheless, it cannot be cultivated as freely as other crops.

The Bill detailed the practices, under which it would be considered violations of the legislation, if a cannabis plant or product contains more than 0.3% tetrahydrocannabinol (THC) content or cultivating hemp without a license. Furthermore, industrial hemp with a THC content of less than 0.2% is allowed to be grown in European countries.

Owing to the legalization of industrial hemp cultivation in North America and Europe has shifted the focus on producing oilseeds and CBD oil, a non-psychoactive cannabinoid that can be employed in the food and medicinal industries. This is because vitamin and mineral elements are abundant in hemp seed and hemp seed oil. Also, hemp seed oil has high fatty acids and a balanced protein profile, and can be easily digested. Further, CBD is becoming more popular as a food supplement and as a component of pharmaceutical and cosmetic products. Thus, the market is likely to develop in the coming years.

Industrial Hemp Market Report Coverage

Europe Holds the Largest Market Share

Globally, the European industrial hemp market contributed the largest share, of around 35%, in 2021. This is due to the presence of a large consumer base for food, beverages, dietary supplements, and personal care products, and the existence of various key market players, including HempFlax BV, Konoplex Group, HemPoland, Dun Agro, South Hemp Tecno, and MH Medical Hemp, in the region. Furthermore, government authorities in several European countries have approved the cultivation of industrial hemp, which has boosted the crop output. Moreover, the introduction of hemp-based products for skincare applications, which benefits end consumers, has a significant positive impact on the demand for hemp in the region.

Market Players Are Involving in Product Launches to Gain Competitive Edge

The global industrial hemp industry is fragmented in nature, with the presence of several major players. In recent years, they have pursued product launches in order to stay ahead of their competitors. For instance:

• In January 2022, Hemp Inc. launched cannabidiolic acid (CBDA) and cannabigerolic acid (CBGA) products, in response to new COVID study findings. These products are CBDA and CBGA water, tinctures, gummies, capsules, and edibles, which will come in a variety of sizes, potencies, flavors, and formulas.
• In February 2021, HemPoland launched CannabiGold Sport, a line of hemp-derived CBD pre- and post-workout supplements designed for professional and recreational athletes. CannabiGold Sport oils are available in five different formulations, each developed to support sports enthusiasts at different stages of their training. They contain different plant-derived ingredients and vitamins, combined with pure CBD in coconut medium-chain triglycerides (MCTs) oil.

Key Players in Industrial Hemp Market Are:

• Ecofibre
• Hemp Inc.
• HempFlax Group B.V.
• Konoplex Group
• Hemp Oil Canada
• HemPoland
• Dun Agro Hemp Group
• Colorado Hemp Works
• GenCanna
• MH Medical Hemp

Segmentation Analysis

The research offers market size of the global industrial hemp market for the period 2017–2030.

Based on Type

• Hemp Seed
• Hemp Oil
• Hemp Fiber
• CBD Hemp Oil

Based on Application

• Food
• Textiles
• Beverages
• Personal Care Products
• Pharmaceuticals

Based on Source

• Conventional
• Organic

Based on Farm

• Outdoor
• Indoor

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Argentina
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa