Industrial Hemp Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Hemp Seed, Hemp Seed Oil, Hemp Fiber, CBD Hemp Oil), By Source (Organic, Conventional), By Application (Food, Beverages, Personal Care Products, Textiles, Pharmaceuticals), And By Geography – Forecast From 2022 To 2027
- Published : Nov 2022
- Report Code : KSI061612793
- Pages : 120
The industrial hemp market is projected to witness a compound annual growth rate of 20.25% to grow to US$7.976 billion by 2027, from US$2.194 billion in 2020.
Industrial hemp belongs to the family of plant species Cannabis stive. This plant is used in numerous industrial and consumer products as a raw material worldwide. The core chemicals found in industrial hemp are fibre and tetrahydrocannabinol (THC). The presence of tetrahydrocannabinol (THC) makes it a valuable ingredient. However, tetrahydrocannabinol (THC) is a psychoactive chemical that affects the human nervous system if consumed. Hence, the trade and usage of industrial hemp are regulated by the drug authorities.
The growing acceptance of industrial hemp in numerous industries, coupled with losing strict rules, has increased the market value. Furthermore, innovation and development of new products also expand the market prospects. Moreover, robust growth in the end-user industries is expected to diversify the market opportunities. However, in numerous countries, industrial hemp is highly regulated owing to the presence of THC, which constrains the market.
The Industrial Hemp market, by region, has been segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. The North American market for Industrial Hemp is anticipated to hold a dominating share owing to greater acceptance of THC. In the US, Drug Enforcement Agency (DEA) regulates the production and trade of industrial hemp. Data from USDA Rural Development shows that the net retail value sale of industrial hemp in 2017 in the country stood at US$820 million, slightly up from the previous year. Rising production in the country coupled with the easing of regulation is expected to drive notable market demand.
The Asia Pacific Industrial Hemp market is forecasted to drive at a noteworthy rate owing to a surge in CBD-based products, particularly pharmaceuticals, and cosmetics. The area has emerged as a manufacturing hub for numerous skincare products and other cosmetics. Increasing demand for CBD-based cosmetics has raised market adoption and hence driven significant demand for industrial hemp.
CBD Hemp oil is projected to hold a significant market share.
Based on type, the Industrial Hemp market has been segmented into hemp seed and oil, hemp fibre, and CBD hemp oil. CBD hemp oil is expected to hold a remarkable share of the market and grow at a noteworthy rate. The rising demand for CBD-based cosmetic products is one of the prime reasons driving the market demand. Furthermore, favorable regulations provide a pass for CBD-based products that also help in market growth. The legalization of CBD in the US further expands the segment opportunities.
Organically produced industrial hemp is expected to dominate the market.
By source, the Industrial Hemp market has been segmented into organic and conventional. Organically produced industrial hemp is expected to dominate the market. The surge in demand for an organic product is the prime reason expected to drive the market demand for the segment. However, storage and lower shelf life of organic industrial hemp, owing to the minimum involvement of chemicals, are expected to constrain the market growth.
Based on application, industrial hemp is distinguished in food, beverage, personal care products, textiles, and pharmaceuticals. Personal care products and textiles are expected to hold a significant market share. The increasing demand for THC and fibre-based cosmetics is anticipated to support the market demand for industrial hemp in the cosmetic industry. The pharmaceutical sector is also expected to grow at an exceptional rate owing to numerous medical benefits. The food and beverage sectors are expected to grow at a slower rate due to the presence of the psychoactive chemical THC.
- Robust growth in CBD-based products
One of the prime reasons supporting the growth in the industrial hemp market is the rising adoption of CBD-based products, which is expected to drive noticeable demand. CBD skincare and pharmaceutical products have observed a surge in market demand owing to numerous benefits. Furthermore, innovation and the launch of new products are also contemplated to widen the market prospects.
- High government regulations
Owing to the presence of THC, the industrial hemp industry is highly regulated by the government and other authorities, which is expected to constrain market growth. Furthermore, restrictions on the use of CBD also impact the market.
Impact of Covid-19
The coronavirus pandemic resiliently reduced the market demand for industrial hemp. The robust outbreak of the virus and implementation of a nationwide lockdown resulted in the supply chain and shutdown of manufacturing units, which impacted the market demand.
- January 2020: Black Bird Potentials Inc., a Montana-licensed industrial hemp producer, manufacturer, and supplier of Zero-THC CBD products underneath its Grizzly Creek Naturals brand, was acquired by Digital Development Partners, Inc., according to a press release. The company has absorbed Black Bird's business strategy, and Black Bird's current operations have become those of the company. Along with the transaction, Black Bird's management assumed ownership of DGDM and is now in charge of the organization's board of directors.
- June 2021: The merger of CanaFarma Hemp Products Corp., a full-service company operating in the hemp industry and providing a full range of hemp-related products and services, and Vertical WellnessTM, a leader in the branded wellness and health space, has been announced. Vertical Wellness will become the first CBD brand house to go public as a result of this transaction. The CanaFarma deal makes it possible to attract the resources needed to create a portfolio of brands across a wide range of categories and sectors.
- HempFlax’s hemp fibre: Industrial hemp of the highest grade is used to produce the hemp fibres used by HempFlax, which are then converted into building ingredients without the use of toxins or chemical processes. The extraordinarily resistant hemp fibre is made multipurpose by achieving the ideal length and fineness ratio during the production process. The versatile technical hemp fiber from HempFlax is ideal for use in cutting-edge industrial applications like press modeling and injection molding. Since hemp fiber is a bulk commodity, it is ideal for the automobile and textile sectors, which produce high-volume customized goods.
- Dun Agro Hemp Lime: An energy-efficient building material called hemp lime consumes a small percentage of the energy needed for conventional building materials. CO2 is also absorbed by lime hemp during the curing process. It satisfies the need for a healthy and energy-efficient lifestyle and has great insulating qualities. Therefore, hemp-lime provides a superb foundation for a sustainably constructed structure. Lime hemp panels can also be utilized with ease in conventional building techniques. They can be utilized, for instance, to insulate the roof, interior walls, and flooring.
- By Type
- Hemp Seed
- Hemp Seed Oil
- Hemp Fiber
- CBD Hemp Oil
- By Source
- By Application
- Personal Care Products
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter's Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. INDUSTRIAL HEMP MARKET, BY TYPE
5.2. Hemp Seed
5.3. Hemp Seed Oil
5.4. Hemp Fiber
5.5. CBD Hemp Oil
6. INDUSTRIAL HEMP MARKET, BY SOURCE
7. INDUSTRIAL HEMP MARKET, BY APPLICATION
7.4. Personal Care Products
8. INDUSTRIAL HEMP MARKET, BY GEOGRAPHY
8.2. North America
8.3. South America
8.4.3. United Kingdom
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.6. Asia Pacific
8.6.3. South Korea
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
9.1. Major Players and Strategy Analysis
9.2. Emerging Players and Market Lucrativeness
9.3. Mergers, Acquisitions, Agreements, and Collaborations
9.4. Vendor Competitiveness Matrix
10. COMPANY PROFILES
10.1. Aurora Cannabis
10.3. Hemp Inc.
10.4. Hempflax Group B.V.
10.6. Dun Agro Hemp Group
10.7. South Hemp
Dun Agro Hemp Group
|Report Name||Published Month||Get Sample PDF|
|Specialty Enzymes Market Size & Share: Industry Report, 2022-2027||Mar 2022|
|Hydrocolloids Market Size & Share: Industry Report, 2021 - 2026||Aug 2021|
|Food Enzymes Market Size & Share: Industry Report, 2022-2027||Mar 2022|
|Digestive Enzymes Market Size & Share: Industry Report, 2019-2024||May 2021|
|Edible Fungi Market Size & Share: Industry Reports, 2021-2026||Jun 2021|