The global industrial hemp market is projected to generate $60,682.8 million revenue by 2030, advancing at a CAGR of 33.7% during 2021–2030. Key factors driving the market include the surging need for industrial hemp in end-use sectors and the rising consumer demand for plant-based protein.
The outbreak of COVID-19 had a significant negative impact on this industry. This is primarily because manufacturing operations were on halt due to the government norms including lockdowns and curfews. Hence, the production of industrial hemp was disturbed during the period.
The demand for CBD hemp oil is predicted to surge at the highest CAGR, of around 35%, during the forecast period in the market. This can be attributed to the rise in the need for plant-based pain relievers and the high prevalence of mood-related neurological disorders. Furthermore, the increased frequency of chronic disorders, including diabetes and cancer, is fueling the market expansion. For instance, according to the International Diabetes Federation, in Germany, the total number of diabetic patients was 2.6 million in 2000, which increased to 6.1 million in 2021, and it is expected to rise to 6.51 million by 2030.
Moreover, the application of industrial hemp in the food industry is holding the largest share. This is because hemp is widely used in different food products, in the form of hemp seeds, hemp milk, hemp oils, hemp cheese substitutes, and hemp-based protein powder. The demand for hemp-based products is increasing because their nutritional content is associated with a number of potential health benefits. Also, hemp seeds contain all essential amino acids and are a good protein source for people following a vegan diet.
Further, hemp is a great source of magnesium; for instance, 30 g of hemp seeds contains 210 mg of magnesium. The element plays an important role within the body, including the metabolism of food and the synthesis of fatty acids and proteins. It also assists in neuromuscular transmission and activity and muscle relaxation.
Geographically, the APAC market is predicted to witness the fastest growth during 2021–2030, primarily due to the increasing utilization of hemp products in the medical sector and the rising support from governments for the production of hemp.
Players in the industrial hemp industry have been involved in product launches and partnerships to remain competitive in the market. For instance, in March 2022, Hemp Inc. launched CBD/CBG power capsules. This is a power-packed capsule mainly for pain reduction, improved sleep, and anti-anxiety.
Moreover, in July 2020, GenCanna partnered with Vertical Wellness, a provider in the branded hemp cannabinoid health and wellness space. In this partnership, GenCanna is delivering over 10 million pounds of best-in-class hemp biomass grown within GenCanna's Certified Farming Network to Vertical Wellness for processing.
The major players operating in the 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, and MH Medical Hemp.