Industrial Hemp Market Introduction

Industrial hemp is a variety of the Cannabis sativa plant species that is grown specifically for industrial use. Unlike marijuana, another variety of the Cannabis sativa plant, industrial hemp contains very low levels of tetrahydrocannabinol (THC), the psychoactive compound responsible for the "high" associated with marijuana.The industrial hemp market encompasses a wide range of products that are derived from the plant, including fibers, seeds, and oils. These products are used in a variety of industries, such as textiles, paper, construction, food, and healthcare.The demand for industrial hemp has been increasing in recent years due to its versatility, sustainability, and the growing interest in natural products. Additionally, the legalization of industrial hemp cultivation and use in many countries has further boosted the growth of the industrial hemp market. According to market reports, the global industrial hemp market was valued at around USD 5.3 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of around 15% from 2021 to 2028.

Industrial Hemp Market Size

The global industrial hemp market size was valued at $4.71 billion in 2019 and was expected to grow at a compound annual growth rate (CAGR) of 15.8% from 2020 to 2027. The increasing demand for hemp-based products such as food, textiles, cosmetics, and building materials was identified as the major driver of this market growth.North America was expected to be the largest market for industrial hemp, followed by Europe and Asia Pacific. The United States, in particular, was expected to be a key growth area for the industrial hemp market, due to the growing legalization of hemp cultivation and the increasing use of hemp in various industries.The food and beverage segment was expected to be the largest application segment of the industrial hemp market, due to the increasing popularity of hemp-derived products such as hemp seeds, hemp oil, and hemp protein powder. The textiles segment was also expected to experience significant growth, due to the increasing demand for sustainable and eco-friendly textiles.Overall, the industrial hemp market was expected to remain competitive, with key players continuing to invest in research and development to improve crop yields and develop new hemp-based products. These companies were also expected to expand their distribution networks to reach new customers and markets.

Industrial Hemp Market Share

The global industrial hemp market was dominated by a few major players, including Hempco Food and Fiber Inc., Hemp, Inc., HempFlax BV, Hemp Oil Canada Inc., GenCanna Global Inc., and Ecofibre Limited. These companies held a significant market share due to their strong presence in the market, extensive distribution networks, and established brand recognition.In terms of application, the industrial hemp market is segmented into food, textiles, paper, building materials, personal care, and others. Among these, the food segment is the largest application area, driven by the increasing demand for healthy and natural food products. The textiles segment is also an important market for industrial hemp, as the fiber derived from the plant is used to make a variety of textiles and clothing.Regionally, North America accounted for the largest share of the industrial hemp market in 2020, due to the legalization of industrial hemp cultivation in the United States and the growing demand for hemp-based products in the region. Europe is also an important market for industrial hemp, driven by the increasing use of hemp in various industries and the growing focus on sustainable and eco-friendly products.

Industrial Hemp Market Trends

The industrial hemp market was expected to exhibit several significant trends in the coming years.

Legalization and regulatory changes: The legalization of industrial hemp cultivation and production in various countries and regions was expected to drive market growth. For example, in the United States, the passage of the 2018 Farm Bill removed hemp from the list of controlled substances, opening up new opportunities for farmers and businesses in the hemp industry. Similarly, the European Union approved new regulations that allowed for the cultivation and processing of hemp for industrial purposes.

Increasing demand for hemp-based products: The growing popularity of hemp-based products such as food, textiles, cosmetics, and building materials was expected to drive market growth. Hemp is a versatile crop that can be used to produce a wide range of products, and its popularity as a sustainable and eco-friendly material was expected to increase demand in various industries.

Growing consumer awareness: Consumers were expected to become more aware of the benefits of hemp-based products and the sustainability of hemp cultivation. This was expected to increase demand for hemp-based products and drive market growth.

Advancements in hemp genetics: Advances in hemp genetics and breeding were expected to improve crop yields, disease resistance, and cannabinoid production. This was expected to increase the efficiency and profitability of hemp cultivation and processing.

Innovation in processing technology: Innovations in hemp processing technology were expected to improve the efficiency and quality of hemp processing, making it easier and more cost-effective to produce a wide range of hemp-based products.

Overall, the industrial hemp market was expected to remain dynamic and competitive, with key players continuing to invest in research and development to improve crop yields, develop new products, and expand their market reach.

Industrial Hemp Market Driving Factors

There are several driving factors that are contributing to the growth of the industrial hemp market. These include:

Legalization of industrial hemp: The legalization of industrial hemp cultivation and use in many countries, such as the United States, Canada, and parts of Europe, has provided a significant boost to the market. This has enabled farmers to grow hemp for commercial purposes and has led to an increase in the production and availability of hemp-based products.

Growing demand for natural and eco-friendly products: The increasing awareness about the environmental impact of synthetic materials and the growing demand for natural and eco-friendly products has led to an increase in the demand for industrial hemp-based products. Hemp is a highly sustainable crop that requires minimal pesticides and fertilizers, making it an attractive option for environmentally conscious consumers.

Versatility of industrial hemp: Industrial hemp is a highly versatile crop that can be used to produce a wide range of products, including fibers, seeds, and oils. This versatility has enabled the development of new and innovative applications, such as hemp-based biofuels, plastics, and building materials.

Health benefits of industrial hemp: Hemp seeds and oils are rich in nutrients and have been associated with various health benefits, such as reducing inflammation, improving heart health, and promoting skin health. This has led to an increase in the demand for hemp-based food and personal care products.

Increasing investment in research and development: With the growing interest in industrial hemp and its potential applications, there has been an increase in investment in research and development. This has led to the development of new technologies and products, further driving the growth of the industrial hemp market.

Industrial Hemp Market Regional Analysis

The  industrial hemp market was expected to exhibit significant regional differences and opportunities.

North America: North America was expected to be the largest market for industrial hemp, due to the increasing legalization of hemp cultivation and the growing demand for hemp-based products. The United States, in particular, was expected to be a key growth area for the industrial hemp market, due to the passage of the 2018 Farm Bill that legalized hemp cultivation and the increasing use of hemp in various industries.

Europe: Europe was expected to be another major market for industrial hemp, due to the growing demand for sustainable and eco-friendly products. The European Union approved new regulations that allowed for the cultivation and processing of hemp for industrial purposes, opening up new opportunities for hemp farmers and businesses.

Asia-Pacific: The Asia-Pacific region was also expected to experience significant growth in the industrial hemp market, due to the increasing demand for hemp-based products such as food, cosmetics, and textiles. Countries such as China, India, and Japan were expected to be key players in the industrial hemp market in the region.

Rest of the World: Other regions such as Latin America, the Middle East, and Africa were expected to exhibit significant growth opportunities in the industrial hemp market, due to the increasing demand for sustainable products and the legalization of hemp cultivation in some countries.

Overall, the industrial hemp market was expected to remain dynamic and competitive, with key players continuing to invest in research and development to improve crop yields, develop new products, and expand their market reach in different regions.

Industrial Hemp Market Forecasts 2030 

The global industrial hemp market is expected to continue its growth trajectory and reach a value of USD 26.6 billion by 2030, growing at a compound annual growth rate (CAGR) of around 21.3% from 2021 to 2030.The increasing demand for natural and eco-friendly products, the growing use of hemp in the textile, paper, and construction industries, and the legalization of industrial hemp cultivation in many countries are expected to continue to drive the growth of the industrial hemp market during this period.Furthermore, the increasing investment in research and development to develop new and innovative applications for industrial hemp, such as in the biofuels and plastics industries, is expected to further boost the growth of the market.Regionally, North America is expected to continue to dominate the industrial hemp market during this period, followed by Europe and the Asia-Pacific region. The food segment is expected to remain the largest application area for industrial hemp, while the textiles and building materials segments are expected to grow at the fastest rates.

Industrial Hemp Market Key Industry Players

some of the key industry players in the industrial hemp market included:

Canopy Growth Corporation: Canopy Growth Corporation is a Canadian company that produces and sells medical and recreational cannabis products, including hemp-based products. The company has partnerships with hemp farmers in several countries and produces hemp-derived CBD products.

Hemp, Inc.: Hemp, Inc. is a US-based company that focuses on the cultivation and processing of industrial hemp. The company operates a large hemp processing facility in North Carolina and produces a wide range of hemp-based products such as hemp fiber, hempcrete, and CBD oil.

Ecofibre: Ecofibre is an Australian company that produces and sells hemp-derived products such as textiles, food products, and nutraceuticals. The company also develops hemp genetics and produces high-quality hemp seeds for farmers.

Aurora Cannabis: Aurora Cannabis is a Canadian company that produces and sells medical and recreational cannabis products, including hemp-based products. The company has partnerships with hemp farmers in several countries and produces hemp-derived CBD products.

Hempco Food and Fiber: Hempco Food and Fiber is a Canadian company that produces and sells hemp-based food products and hemp fiber. The company operates a large hemp processing facility in Alberta and has partnerships with hemp farmers in several countries.Overall, the industrial hemp market was expected to remain competitive, with key players continuing to invest in research and development to improve crop yields, develop new products, and expand their market reach.