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Industrial Hemp Market - Forecasts from 2022 to 2027

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  • 116 Pages
  • April 2022
  • Region: Global
  • Knowledge Sourcing Intelligence LLP
  • ID: 5602531
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 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 the 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, favourable 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 minimum involvement of chemicals, is 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.

Growth Factors

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.

COVID Insights

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.

Market Segmentation:

By Type

  • Hemp Seed
  • Hemp Seed Oil
  • Hemp Fiber
  • Cbd Hemp Oil

By Source

  • Organic
  • Conventional

By Application

  • Food
  • Beverage
  • Personal Care Products
  • Textiles
  • Pharmaceuticals

By Geography

  • North America
  • USA
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Others
  • Europe
  • Germany
  • France
  • United Kingdom
  • Spain
  • Others
  • Middle East and Africa
  • Saudi Arabia
  • UAE
  • Israel
  • Others
  • Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Thailand
  • Indonesia
  • Others
Frequently Asked Questions about the Global Industrial Hemp Market

What is the estimated value of the Global Industrial Hemp Market?

The Global Industrial Hemp Market was estimated to be valued at $2.19 billion in 2020.

What is the growth rate of the Global Industrial Hemp Market?

The growth rate of the Global Industrial Hemp Market is 20.2%, with an estimated value of $7.98 billion by 2027.

What is the forecasted size of the Global Industrial Hemp Market?

The Global Industrial Hemp Market is estimated to be worth $7.98 billion by 2027.

Who are the key companies in the Global Industrial Hemp Market?

Key companies in the Global Industrial Hemp Market include Aurora Cannabis Inc., Ecofibre Ltd., Hemp Inc., Hempflax BV, Konoplex Group, Dun Agro, GenCanna and South Hemp Tecno.

Table of Contents

1.1. Market Definition
1.2. Market Segmentation
2.1. Research Data
2.2. Assumptions
3.1. Research Highlights
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
5.1. Introduction
5.2. Hemp Seed
5.3. Hemp Seed Oil
5.4. Hemp Fiber
5.5. Cbd Hemp Oil
6.1. Introduction
6.2. Organic
6.3. Conventional
7.1. Introduction
7.2. Food
7.3. Beverages
7.4. Personal Care Products
7.5. Textiles
7.6. Pharmaceuticals
8.1. Introduction
8.2. North America
8.2.1. USA
8.2.2. Canada
8.2.3. Mexico
8.3. South America
8.3.1. Brazil
8.3.2. Argentina
8.3.3. Others
8.4. Europe
8.4.1. Germany
8.4.2. France
8.4.3. United Kingdom
8.4.4. Spain
8.4.5. Others
8.5. Middle East and Africa
8.5.1. Saudi Arabia
8.5.2. UAE
8.5.3. Israel
8.5.4. Others
8.6. Asia Pacific
8.6.1. China
8.6.2. India
8.6.3. Japan
8.6.4. South Korea
8.6.5. Taiwan
8.6.6. Thailand
8.6.7. Indonesia
8.6.8. Others
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
10.1. Aurora Cannabis Inc.
10.2. Ecofibre Ltd.
10.3. Hemp Inc.
10.4. Hempflax BV
10.5. Konoplex Group
10.6. Dun Agro
10.7. GenCanna
10.8. South Hemp Tecno

Companies Mentioned

  • Aurora Cannabis Inc.
  • Ecofibre Ltd.
  • Hemp Inc.
  • Hempflax BV
  • Konoplex Group
  • Dun Agro
  • GenCanna
  • South Hemp Tecno