Industrial Hemp Market Synopsis

Industrial Hemp Market Size Was Valued at USD 6.35 Billion in 2023 and is Projected to Reach USD 32.27 Billion by 2032, Growing at a CAGR of 19.8% From 2024-2032.

Industrial Hemp plant is a stout, annual, aromatic herb cultivated for its best fibre and edible seeds. The plant is strong, tough, and long-lasting and is mostly used for cordage, e.g., twine, rope, yarn, cable, string, and artificial sponges. Numerous goods, including insulation and building materials, paper, textiles, fibreglass, nutraceuticals, personal care items, bio-plastics, and biofuel are processed from industrial hemp.

• Without the use of harmful chemicals, herbicides, pesticides, or fertilisers, it is primarily cultivated for food and beverage production as well as non-food-based items. Industrial hemp offers a renewable and environmentally benign raw material for the production of many products, including plastic, paper, and fuel.
• More than 30 nations worldwide authorise the production of industrial hemp. Industrial hemp is mostly produced in China, France, and Canada, with the United States serving as a major importer. Since industrial hemp is frequently mistaken for the marijuana plant, it is illegal to grow it in many nations, including the majority of the United States.
• But many nations are legalising industrial hemp due to growing public awareness and increased demand from uses in several industries. Thus, multiple benefits and rising awareness of the product benefits of industrial hemp further assist the demand of industrial hemp market over the projected years.

Industrial Hemp Market Trend Analysis

Increasing Applications and Legalization Boosting the Market Growth

• Industrial hemp is mostly cultivated for fibre for the paper and textile industry. The low prices of easily as well as commonly acquired hemp as compared to various organic sources and their increasing application in material and construction, furniture and automotive industries are the factors that are expected to drive the hemp market in the forecasted years. Hemp fibre is estimated to continue its utilization in new areas including paper, insulation materials, home furnishing, construction materials, composites, and auto parts. Increasing consumer awareness regarding the health benefits of consuming hemp-based products is also driving the market. The industrial hemp market was presided over by the food sector owing to the vast application of hemp seed oil and hemp seeds, due to their rich protein, vitamin, and omega-3 fatty acid.
• Due to the legalisation of industrial hemp cultivation in the US, the production of oilseeds and cannabidiol (CBD), a non-intoxicating cannabinoid that can be use in the food and medicinal industries, which has taken centre stage in North America. In addition to being a common nutritional supplement, CBD is also a crucial component of many medicinal and beauty goods.

Beneficial Use in Various Industries and Rising Demand in Pharmaceutical Sector

• The rising demand for Industrial hemp from various pharmaceutical industry, due to the medicinal and useful properties of the hemp seed oil and hemp fiber is likely to sustain the market in the upcoming years. Industrial hemp been rich in essential medicinal properties that can cure many chronic pains, sleep disorders, and can reduce pain cause by many reasons which creates an opportunity to expand in the pharmaceutical industries.
• Furthermore, industrial hemp is growing rapidly as it possesses many characteristic properties that can be utilized well in many industries on a large scale. However, rising demand for the beneficial usage of the industrial hemp product in textiles, paper making, biodegradable plastics, construction, health food, and fuel is expected to provide tremendous growth opportunities in the upcoming years.

Industrial Hemp Market Segment Analysis:

Industrial Hemp Market Segmented on the basis of product, application, and source.

By Product, hemp fibre segment is expected to dominate the market during the forecast period

• The hemp fibre segment is estimated to dominate the market. Hemp fiber is mostly used in the pulp and paper as well as textile industry, owing to its long and robust fibers when compared to cotton.  As one of the sturdiest and most long-lasting organic fibres now on the market, hemp is a great material for outerwear.
• Even more than cotton, hemp clothing is reported to have three times the tensile strength. The strength of hemp fibres is retained while providing the comfort of softer, more refined textiles thanks to its ease of blending with other fibres to create hemp-hybrid materials. Hemp is a fantastic material for anyone searching for durable clothing since it has been grown since the dawn of agriculture.
• Additionally, growing hemp for use in fabric has only a minor negative impact on the environment. It is therefore perfect for individuals who are interested in living sustainably.  Therefore, Hemp Fibre likely to dominate the segment and propel the growth of industrial hemp market.

By Application, food and Beverages segment held the largest share of 60% in 2022

• The food segment is estimated to dominate the industrial hemp market during the forecasted period owing to the wide range of applications of hemp seeds and hemp seed oil, because of their rich protein, vitamin and omega-3 fatty acid content. Hemp seeds being used as a topping in cereals, smoothies, and yogurt or are consumed raw, are the major applications which are impacting for the rapid growth. In food and beverage sector, CBD oil and related products generating high demand in last few years as consumption of CBD oil for muscle relaxant, anti-anxiety treatment as well as high nutrition sources are among major factors for the excess demand.
• According to Investment banking firm Cowen, the retail sales of CBD consumer goods in the United States were anticipated to reach between $600 million and $2 billion last year. The bank projects revenues to reach $16 billion by 2025, with food, beverage, cosmetics, and vapour also expected to play a major part in the growth of the sector whereas health and wellness items are expected to top the market.  Rising consumer awareness about the health benefits of consuming hemp-based products is the major factor that is driving the market for its application in food.

Industrial Hemp Market Regional Insights:

Asia Pacific is Expected to Dominate the Market Over the Forecast period

• The European region is dominating in the Industrial Hemp Market owing to the increasing demand for hemp-based products, rising awareness regarding health benefits and changing government policies in the region. The strength to weight ratio, flexural strength, and high tensile strength of industrial hemp offer varied benefits and application in bio-composites for automotive parts, aerospace, fibreboard, and packaging in the European market.
• Furthermore, the product demand from the paper, building materials markets, and textile is growing on account of its favourable aesthetic and acoustic properties is driving the market growth of industrial hemp in this region. The rising demand for eco-friendly products in construction materials, fiberglass alternatives, thermal insulation, and automotive products is expected to promote market growth. The growing demand for technical products, such as varnishes, oil paints, fuel, solvents, chain-saw lubricants, printing inks, putty, and coatings, is expected to have a positive impact on the market growth.

Industrial Hemp Market Top Key Players:

• Mohr Hemp (United States)
• Nutiva (United States)
• Nutritional High (United States)
• Olvita (United States)
• Paradise Hemp (United States)
• Phoenix Natural Earth Products (United States)
• Sensient Technologies (United States)
• Sunstrand (United States)
• The Hemp Foundry (United States)
• Vertus Farms (United States)
• World Wide Hemp (United States)
• Agrofibra (Canada)
• Bastfibre Technologies (Canada)
• Cannaray (Canada)
• Ecofibre (Canada)
• Hempco (Canada)
• Hempitecture (Canada)
• Linwoods (United Kingdom)
• Agrofibra (Brazil)
• Hempact (France)
• HempFlax (Netherlands)
• Linwood Hemp (United Kingdom)
• Mohr Hemp Australia (Australia)
• Satya Hemp (India)

 Key Industry Developments in the Industrial Hemp Market:

• In September 2023, the US House of Representatives passed the SAFE Banking Act, which would allow banks to serve cannabis-related businesses without fear of federal reprisal. While this doesn't directly impact industrial hemp, it signals a growing acceptance of cannabis at the federal level, which could indirectly benefit the hemp industry.
• In October 2023, Level One Health, a leading producer of hemp-based CBD products, announced a partnership with KeHE Distributors, one of the largest natural food distributors in the US. This partnership will give Level One Health access to a wider distribution network and is expected to boost sales.