Home Food & Beverages Industrial Hemp Market Size to Surpass $16.41 billion by 2030 at a CAGR of 16.92%

Industrial Hemp Market

Industrial Hemp Market Size, Share & Trends Analysis Report By Nature (Organic, Conventional), By Product Type (Seed, Fiber, Shives, Others), By Application (Food and Beverage, Personal Care, Textiles, Pharmaceuticals, Paper, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Report Code: SRFB1406DR
Study Period 2020-2032 CAGR 16.92%
Historical Period 2020-2022 Forecast Period 2024-2032
Base Year 2023 Base Year Market Size USD XX Billion
Forecast Year 2032 Forecast Year Market Size USD XX Billion
Largest Market North America Fastest Growing Market Asia Pacific
The sample report only takes 30 secs to download, no need to wait longer.

Market Overview

The global industrial hemp market size had a share of USD 4.02 billion in 2021, which is expected to advance and reach USD 16.41 billion by 2030 with a CAGR of 16.92% during the forecast period. The food business is seeing a rise in demand for hemp due to its useful qualities. Market players are being prompted to innovate and develop new goods using industrial hemp as a result of the growing trend of legalizing hemp farming. The United States is the world's biggest user of hemp, having legalized the plant for medical use in 36 states and four territories. Hemp seed and oil are increasingly being used in the food industry.

Industrial hemp is a variety of Cannabis Sativa plants grown for industrial purposes. Industrial hemp has a lower level of psychoactive compounds than cannabis THC has. It is used for manufacturing a wide range of products in industries, such as usable fibers, paper, textiles, rope, biodegradable plastics, clothing, paint, insulation, biofuel, animal feed, and food.

Market Dynamics

Market Drivers

Increasing Application of Hemp Seed and Hemp Oil in Food Industry

The demand for hemp is increasing in the food industry owing to its functional properties. Industrial hemp is low in tetrahydrocannabinol (THC) as a result, it doesn’t have strong psychoactive effects, which makes it useful for the food processing industries. It is rich in vitamin E, vitamin B1, vitamin B2, vitamin D, vitamin B6, potassium, magnesium, and calcium. Industrial hemp is also rich in two essential fatty acids, i.e., linoleic (omega 3) and linoleic (omega 6).

Hemp seeds contain enough protein and can be considered as a value addition to vegetarian and vegan diets. Hemp is used as a source of essential fatty acids since it is low in saturated fats and contains no trans-fats. The food items prepared using industrial hemp can be consumed by diabetic patients. The growing demand for functional foods and increasing applications of hemp in food industries is expected to drive the global industrial hemp market. According to the Institute of Food Technologists (IFT), the global functional foods sales were USD 267 billion in 2020. Moreover, naturally healthy foods sales were USD 259 billion in February 2020.

Market Restraints

Stringent Regulation on Hemp Use and Cultivation

Although industrial hemp has a lower concentration of THC, its cultivation and use are prohibited in several nations across the globe. The companies who are into the business of hemp and hemp products require compliance with different regulatory guidelines. There are different types of regulations and legalization in various countries for different types of hemp. The legalization is based on usage, production or cultivation, and sales of hemp.

The regulations for hemp production and sales containing CBD and THC remain highly varied from country to country and state to the state leading to complications associated with the trading of hemp and hemp products. For example, in the U.S., various legal policies are taken into consideration, such as certification of seeds, licensure of growers/producers, legal protection of growers, state-wide commission, among others. These difference in the regulation, standards, and legalization of hemp globally is hindering the commodity trade, which is restraining the market growth.

Market Opportunity

Innovation and Product Development Can be a Good Opportunity for the Market Players

Increasing legalization associated with the production of hemp is influencing market players to develop new products from industrial hemp. The manufacturers of hemp could focus on the products, such as bioplastics, biofuels, and other bio-based products to gain high return rates. Bio-fuels have a significant growth potential in upcoming years as the price of diesel and petrol is increasing. Moreover, the increasing global warming and environmental issues are some factors that are creating demand for bio-fuels.

Hemp seed oil and extracts can be used to produce biofuels and bio-ethanol. Bio-fuels produced by hemp can be used in various diesel-operated vehicles. According to a report published in 2019 by Researchers from the University of Connecticut, hemp biodiesel has a high conversion efficiency of around 97%.

Regional Analysis

North America is expected to dominate the global industrial hemp market. This can be attributed to several tailwind factors such as growing demand for functional foods in the region, increasing permission to cultivate cannabis for industrial, medical, recreational purposes, and increasing demand for cannabis-infused drinks in the region, among others. According to the National Conference of State Legislatures (NCSL), the U.S. has the largest users of hemp in the world and the country has legalized hemp in 36 states and 4 territories for medical use. Moreover, the use of hemp for recreational purposes is also legalized in 15 states and 3 territories as of November 2020. These factors are driving the market growth in the North American region. Moreover, the demand for functional food is also increasing in the region which is further expected to fuel the regional industrial hemp market growth, as per the data provided by the Institute of Food Technologists (IFT), the U.S. functional foods sales reached USD 63 billion in 2020.

Report Scope

Report Metric Details
Segmentations
By Nature
  1. Organic
  2. Conventional
By Product Type
  1. Seed
  2. Fiber
  3. Shives
  4. Others
By Application
  1. Food and Beverage
  2. Personal Care
  3. Textiles
  4. Pharmaceuticals
  5. Paper
  6. Others
Company Profiles Parkland Industrial Hemp Growers Cooperative Ltd. (PIHG) Hempco CBD Biotechnology Co., Ltd. Ecofibre Hemp Inc. Botanical Genetics, LLC GenCanna Marijuana Company of America Inc. HempFlax BV Konoplex Group HempMedsBrasil Terra Tech Corp Hemp Oil Canada Industrial Hemp Manufacturing, LLC BAFA Hemp Poland Dun Agro Colorado Hemp Works Canah International American Cannabis Company, Inc. South Hemp Tecno Plains Industrial Hemp Processing MH Medical Hemp Others
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Segmental Analysis

Based on nature, the global industrial hemp market is segmented into organic and conventional. 

The conventional segment held for the largest share in 2019. However, the organic segment is growing at a fast pace due to the increasing awareness among consumers about organic products and their benefits.

Globally, organic farming is increasing at a fast pace due to the consumer’s inclination towards organic food products. In late 2018, according to Food and Agricultural Organization (FAO), the number of organic producers was around 2.8 million. As of 2018, more than 71 million hectares of land were organically managed, representing a growth of approximately 3% compared to 2017. 

Based on product type, the market has been segmented as fiber, seeds, shives, and others.  The hemp fiber segment is expected to dominate the market during the analysis period 2020-2029. This is due to the increasing application of hemp fiber in various industries. As it is renewable source material, its application is increasing in the industries, such as agriculture, construction, automotive, furniture, and animal bedding. Furthermore, hemp fiber is extensively used in the textile, paper, and pulp industry owing to its strong and long fibers compared to cotton. Its demand is expected to further increase as it is also being used for the production of bioplastics and biofuels.

Hemp seed is expected to be the fastest-growing product type segment during the forecast period owing to its approval from FDA to use in the food and consumable products. According to FDA, hemp seeds do not contain any psychoactive compound. FDA has approved three food products made by hemp seed in late 2018 in the U.S. Moreover, as hemp seed is rich in vitamin, protein, and omega-3 fatty acid content, its demand is expected to increase in the food and dietary supplements in the near future.

Market Size By Nature

Market Size By Nature
  • Organic
  • Conventional
  • Top Key Players

    Industrial Hemp Market Share of Key Players

    Industrial Hemp Market Share of Key Players
    Parkland Industrial Hemp Growers Cooperative Ltd. (PIHG) Hempco CBD Biotechnology Co., Ltd. Ecofibre Hemp Inc. Botanical Genetics, LLC GenCanna Marijuana Company of America Inc. HempFlax BV Konoplex Group HempMedsBrasil Terra Tech Corp Hemp Oil Canada Industrial Hemp Manufacturing, LLC BAFA Hemp Poland Dun Agro Colorado Hemp Works Canah International American Cannabis Company, Inc. South Hemp Tecno Plains Industrial Hemp Processing MH Medical Hemp Others Others

    Frequently Asked Questions (FAQs)

    What is the growth rate for the Market?
    Global Market size will grow at approx. CAGR of 16.92% during the forecast period.
    Some of the top industry players in Industrial Hemp Market are, Parkland Industrial Hemp Growers Cooperative Ltd. (PIHG), Hempco, CBD Biotechnology Co., Ltd., Ecofibre, Hemp Inc., Botanical Genetics, LLC, GenCanna, Marijuana Company of America Inc., HempFlax BV, Konoplex Group, HempMedsBrasil, Terra Tech Corp, Hemp Oil Canada, Industrial Hemp Manufacturing, LLC, BAFA, Hemp Poland, Dun Agro, Colorado Hemp Works, Canah International, American Cannabis Company, Inc., South Hemp Tecno, Plains Industrial Hemp Processing, MH Medical Hemp, Others, etc.
    North America has held a dominant position in the Industrial Hemp Market, with the largest market share.
    The Industrial Hemp Market has seen the most substantial growth rate in Asia Pacific.
    The global Industrial Hemp Market report is segmented as follows: By Nature, By Product Type, By Application


    We are featured on :