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Industrial Hemp Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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    Report

  • 120 Pages
  • January 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 5012365

FEATURED COMPANIES

  • American Hemp LLC
  • Bombay Hemp Company
  • Boring Hemp Company
  • Dun Agro Hemp Group
  • ECOFIBRE
  • GenCanna

The Global Industrial Hemp Market is projected to register a CAGR of over 16% during the forecast period (2021-2026).



The market was negatively impacted by COVID-19 in 2020. Manufacturing and construction activities have come to a halt as a result of lockdowns being practiced to curb the COVID-19 pandemic outbreak. The outbreak of COVID-19 also brought several short-term and long-term consequences in the construction industry. According to The Associated General Contractors of America (AGC), there were disruptions to work or canceled projects and hence less demand for “non-essential” projects, like offices, entertainment, and sports facilities in the initial months of 2020. The US manufacturing was in a mild recession for all of 2019, especially due to the US-China trade war. Adding to this, the lockdown had an adverse effect on manufacturing in the country and will impact the ongoing manufacturing recession along with trade uncertainties. Though the pandemic’s impact on the operations of the food and beverage industry is relatively less compared to other industries, the global supply chain of the industry has been majorly affected, thus restricting the industry’s growth.



Key Highlights

  • Over the short term, major factors driving the market studied are growing demand for hemp oil and fibers in various end-user industries and increasing awareness of health-related concerns.
  • On the flip side, strict government regulations imposed by various countries on hemp cultivation due to its illegal use and consumption is hindering the growth of the market.
  • The legalization of the cultivation of industrial hemp in various countries is expected to offer lucrative opportunities for the growth of the market.
  • By application, the food and beverage segment is expected to dominate the market owing to the increasing demand for hemp-based dairy alternatives and cooking oil.
  • North America region is expected to grow at the fastest rate across the globe, with the largest consumption from countries such as the United States and Canada.

Key Market Trends


Increasing Demand from the Food and Beverage Segment


  • Industrial hemp is obtained from the strain of cannabis Sativa plant species which is grown specifically owing to the various uses of hemp-based products.
  • Hemp seeds are used in baking or can be used to make beverages like hemp milk. Hemp seeds can also be eaten raw and are high in protein content, owing to which they are used in animal feed and bird seeds.
  • Hemp seeds are pressed to produce hemp oil which is high in unsaturated fatty acids. The leaves of hemp can be consumed directly as salads or can be pressed to make juice.
  • Hemp seeds are rich in two essential fatty acids, linoleic (omega-6) and linolenic (omega-3). They are also a rich source of vitamin E, vitamin B1, vitamin B2, vitamin B6, and vitamin D, owing to which they are used in ready-to-drink beverages, energy drinks, snacks & cereals, soups, sauces, and bakery products.
  • Humans cannot produce essential fatty acids. The addition of hemp seeds could be useful to them, as they are a great source of linoleic (omega-6) and linolenic (omega-3). Additionally, they are low in saturated fats and contain no trans-fat.
  • Additionally, according to Statista, the global food and beverages industry is expected to register a CAGR of 8.21% from 2020 to 2021 and is expected to account for USD 380 billion by the end of 2025.
  • Despite the trade tension, the processed food demand in the United States showed growth in 2019, especially processed meat products. In Europe, a trend toward more fresh food than processed food has been observed. The demand for food processing in the GCC is expected to register a CAGR of 3.3% from an estimated 51.5 million MT in 2018 to 60.7 million MT in 2023. Primarily, the increase in population, growing tourism, a high per capita income, and a recovering economy are likely to drive the growth of the food sector in the region.
  • The Brazilian food and beverage industry alone generates a turnover of USD 170 billion per year, which represents ~9.5% of GDP. It is one of the largest in the world, with 45,000 companies, of which 86% are SMEs.
  • According to the Brazilian Food Industry Association, the revenue generated by the food products industry increased from BRL 428.7 billion in 2014 to BRL 562.9 billion in 2019. The growing food production in the country is likely boosting the demand for industrial hemp in the country.
  • Owing to all the above-mentioned factors, the demand for industrial hemp from the food and beverage segment is expected to grow rapidly over the forecast period.

The North American Region to Grow at the Fastest Rate


  • The North American region is expected to grow at the fastest rate over the forecast period. In countries like Canada and the United States, due to the growing geriatric population and increased consumer awareness, the demand for industrial hemp has been increasing in the region.
  • The growing concerns of skin diseases and an increasing number of chronic diseases are expected to increase the demand for industrial hemp.
  • According to the International Organization of Motor Vehicle Manufacturers (OICA), the automobile production in the United States was 8,822,399 in 2020, witnessing a decline of 19% compared to 10,880,019 units of production in 2019.
  • The US personal care products market was valued at USD 82,885.24 million in 2019, and it is expected to reach USD 96,448.68 million by 2025, which is likely to boost the market for industrial hemp market over the forecast period.
  • Similarly, in Canada also, automotive production in 2020 was 1,376,623, a decline of 28% in 2020 compared to 1,916,585 vehicles produced in 2019. Over the forecast period, automobile production in both the United States and Canada is expected to recover considerably owing to the rising demand for electric vehicles.
  • The construction industry was undergoing a high growth over the past decade, with about 50 skyscrapers being built in major cities, including Toronto, Vancouver, and Calgary. However, it has seen a decline in the recent past, with the total value of residential permits decreasing by about 13.1% to reach a total of CAD 4.6 billion (~USD 3.27 billion) revenue in March 2020.​ However, the Canadian government is aiming to positively tackle the COVID-19 outbreak and maintain its economy in a stable manner by making necessary fiscal adjustments in the fastest possible way.
  • Additionally, the textile industry in Mexico is benefitted from the NAFTA agreement, which allows free trade between the United States, Canada, and Mexico. Now, in the wake of the United States-Mexico-Canada Agreement (USMCA), also referred to as NAFTA 2.0, Mexico is optimally positioned to carve even further into China’s manufacturing share of the market, particularly within the textile industry.
  • In early 2020, the textile production facilities in the country shut down due to the COVID-19 pandemic. The industry, which contributes 3.2% to the country’s GDP, plunged by 70% as the pandemic began spreading fast in the country. The factories were closed due to a lack of liquidity and huge losses. The textile industry in the country is expected to revive after the COVID-19 pandemic by the end of 2021.
  • The aforementioned factors, coupled with government support, are contributing to the increasing demand for industrial hemp during the forecast period.

Competitive Landscape


The Global Industrial Hemp market is highly fragmented in nature. Some major players in the market include HempFlax Group BV, Plains Industrial Hemp Processing Ltd, Bombay Hemp Company, Manitoba Harvest Hemp Foods, and Hemp Inc.



Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support


This product will be delivered within 2 business days.

FEATURED COMPANIES

  • American Hemp LLC
  • Bombay Hemp Company
  • Boring Hemp Company
  • Dun Agro Hemp Group
  • ECOFIBRE
  • GenCanna

1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2 RESEARCH METHODOLOGY3 EXECUTIVE SUMMARY
4 MARKET DYNAMICS
4.1 Drivers
4.1.1 Growing Demand for Hemp Oil and Fibers in Various Sectors
4.1.2 Increasing Awareness of Health-related Concerns
4.2 Restraints
4.2.1 Strict Government Regulations
4.2.2 Impact of COVID-19
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5 MARKET SEGMENTATION
5.1 Source
5.1.1 Conventional
5.1.2 Mineral
5.2 Type
5.2.1 Hemp Seed
5.2.2 Hemp Seed Oil
5.2.3 Cannabidiol (CBD) Hemp Oil
5.2.4 Hemp Fiber
5.3 Application
5.3.1 Animal Care
5.3.2 Food and Beverage
5.3.3 Textile
5.3.4 Automotive
5.3.5 Furniture
5.3.6 Personal Care
5.3.7 Construction Material
5.3.8 Other Applications
5.4 Geography
5.4.1 Asia-Pacific
5.4.1.1 China
5.4.1.2 India
5.4.1.3 Japan
5.4.1.4 Australia
5.4.1.5 Rest of Asia-Pacific
5.4.2 North America
5.4.2.1 United States
5.4.2.2 Canada
5.4.2.3 Mexico
5.4.3 Europe
5.4.3.1 Germany
5.4.3.2 United Kingdom
5.4.3.3 Italy
5.4.3.4 France
5.4.3.5 Rest of Europe
5.4.4 South America
5.4.4.1 Brazil
5.4.4.2 Argentina
5.4.4.3 Rest of South America
5.4.5 Middle East & Africa
5.4.5.1 Saudi Arabia
5.4.5.2 South Africa
5.4.5.3 Rest of Middle East & Africa
6 COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 American Hemp LLC
6.4.2 Bombay Hemp Company
6.4.3 Boring Hemp Company
6.4.4 Dun Agro Hemp Group
6.4.5 ECOFIBRE
6.4.6 GenCanna
6.4.7 Global Hemp Group Inc.
6.4.8 HempFlax Group BV
6.4.9 Hemp Inc.
6.4.10 HempMeds
6.4.11 Manitoba Harvest Hemp Foods
6.4.12 Marijuana Company of America Inc.
6.4.13 North American Hemp & Grain Co. Ltd
6.4.14 Plains Industrial Hemp Processing Ltd
6.4.15 Valley Bio Limited
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Legalization of Cultivation of Industrial Hemp in Various Countries
7.2 Other Opportunities

A selection of companies mentioned in this report includes:

  • American Hemp LLC
  • Bombay Hemp Company
  • Boring Hemp Company
  • Dun Agro Hemp Group
  • ECOFIBRE
  • GenCanna
  • Global Hemp Group Inc.
  • HempFlax Group BV
  • Hemp Inc.
  • HempMeds
  • Manitoba Harvest Hemp Foods
  • Marijuana Company of America Inc.
  • North American Hemp & Grain Co. Ltd
  • Plains Industrial Hemp Processing Ltd
  • Valley Bio Limited

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