The Industrial Hemp market size was valued at US$2.194 billion in 2020 and is anticipated to increase at a Compound Annual Growth Rate of 20.25% over the predictive period to reach US$7.976 billion by 2027. Industrial hemp, commonly known as hemp, is a botanical class of Cannabis sativa cultivars used for industrial or health-related purposes. It may be used to produce a variety of items. Paper, rope, fabrics, clothes, sustainable plastics, biofuel, food, and animal feed are just a few of the commercial products that may be derived from it. As a result, the numerous advantages of hemp are driving up demand for industrial hemp. Hemp is a fibrous herb that acts as an active source for oilseed production and is grown in more than 30 countries. Industrial hemp also provides many health and environmental advantages. Hemp seeds are in high demand due to rising demand for dietary supplements, foods, and drinks, as well as rising consumer health awareness. Hemp oil includes a high concentration of antioxidants, which is why it's used in personal care and cosmetics.
Industrial hemp has high fiber content and low levels of active tetrahydrocannabinol (THC), the psychoactive component in marijuana that makes some cannabis cultivars a valuable medicine. The production and sale of industrial hemp require manufacturers to comply with a lot of extensive regulatory norms and laws. Canada and the European Union retain this distinction of industrial hemp from marijuana by rigorously controlling THC levels in industrial hemp, which must be less than 0.3 percent, as opposed to 3 to 30 percent in marijuana. Drug enforcement laws in the United States regulate the manufacture of industrial hemp. A permit from the Drug Enforcement Agency is required to grow industrial hemp in the United States (DEA).
Uses of Industrial Hemp
Food: - Hemp seeds can be consumed raw or can be made into a hemp meal by grinding them. Hemp seeds may also be ground into a pulp that can be used in baking or to make drinks like hemp milk and tisanes. Hemp oil is a highly unsaturated-fatty-acid oil that is cold-pressed from the seed. If not stored properly, hemp oil may oxidize and develop rancid quickly; its shelf life is increased when stored in a dark, airtight container and chilled.
Fiber: - Hemp fiber has been utilized in the manufacturing of a wide range of products, including rope, clothing, and industrial components. Sail canvas was also typically made from hemp. The texture of pure hemp is comparable to that of linen. Hemp is now utilized in a range of consumer items, including apparel, shoes, accessories, dog collars, and household crafts, due to its adaptability for usage in a variety of products.
Building Material: - Hemp is a building material that offers solutions to a number of challenges that plague today's construction standards. Hemp products are flexible in a variety of applications because of their low weight, mold tolerance, porosity, and other characteristics. As compared to most current building methods, hemp is said to be a more sustainable building material. Furthermore, its application in building construction might result in lower energy costs and lower pollution.
Hemp is frequently utilized as a kind of insulation. Because of its flexibility and hardness under compression, it is easy to integrate into structural framing systems. By cutting the insulating material during the installation process, it may be readily modified to varied sizes and forms. Hemp insulation is also non-toxic and naturally lightweight.
Due to its lightweight properties, hemp is widely utilized as concrete in building construction. Hemp herds (shives), hydraulic lime, and a water combination in various ratios are used to form concrete to construct a structure.
North American Region to Lead the Market
The North American market has been reported to have the largest market share in the industrial hemp market. Owing to the increasing adoption of industrial hemp in healthcare, and the increasing government support, the market is expected to rise. Also, the increasing production of hemp and rising demand for skin care products in the region have positively influenced the industrial hemp market. The growing demand for environment-friendly production processes to combat climate change effects in the region has increased the demand for industrial hemp in the region.
According to a report published by the United States Department of Agriculture in February 2022, the USDA's National Agricultural Statistics Service (NASS) published the findings of the 2021 Hemp Acreage and Production Survey. The report included data on hemp that was grown in the open as well as hemp that was grown under protection. The total area harvested for all purposes was 33,480 acres. The open market value of hemp output in the United States was US$712 million. In the United States, the output value of hemp farmed under protection was US$112 million. The overall protected area was 15.6 million square feet.
The COVID-19 virus pandemic resulted in a global economic downfall. Most major industries incurred considerable losses as a result of the implementation of lockdown regulations in most major nations. The implementation of lockdown protocols also affected the lifestyle and well-being of the people. Due to the closure of major industries and manufacturing units, the industrial hemp market also saw a decline in demand. The pandemic resulted in the disruption of major production and supply lines.
However, the market has been reported to be recovering, as most countries have lifted their lockdown protocols. Furthermore, the increasing trend for online shopping and the increasing health consciousness among people are likely to raise the demand for the market. Moreover, the increasing developments in therapeutic healthcare are also anticipated to drive the market demand.