Industrial Hemp Market Size, Share & Trends Analysis Report By Product (Seeds, Fiber, Shivs), By Application (Animal Care, Textiles, Personal Care), By Region (North America, APAC), And Segment Forecasts, 2022 - 2030

Report Overview

The global industrial hemp market size was estimated at USD 4.13 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 16.8% from 2022 to 2030. The market is driven by the growing demand for industrial hemp from application industries, such as the food & beverage, personal care, and animal care industries, across the globe. The global market is undergoing limited growth as a consequence of the economic recession caused by the COVID-19 pandemic, which has resulted in a decline in manufacturing activities. As a result, the market has also experienced a catastrophic setback. However, with the high recovery rate of global economies, the market is expected to grow at a faster rate.

The U.S. government announced a COVID-19 relief stimulus of USD 1.9 trillion in January 2021, which is expected to support the market recovery. Moreover, steady growth of small-scale market players of hemp-based industrial and consumer products is anticipated to drive the market in the U.S. over the forecast period. Growing awareness regarding the dietary advantages of hempseed and hempseed oil, along with rising demand from the cosmetics and personal care industries will augment the market growth. Increasing production of soaps, shampoos, bath gels, hand and body lotions, UV skin protectors, massage oils, and a range of other hemp-based products is expected to have a positive impact on the market growth.

The high nutritional values and beneficial fatty acid and protein profile of hemp are driving the demand for hemp products. The high absorbency of hemp fiber is beneficial for livestock bedding, oil & gas cleanup, and personal hygiene applications. In addition, increasing product demand from the textile, paper, and building materials markets, owing to favorable acoustic and aesthetic properties, will support the market growth. The products manufactured from hemp are eco-friendly, renewable, and associated with less harmful methods of preparation. Paper produced from hemp fiber requires fewer chemicals for processing as compared to paper produced from wood pulps. Thus, the rising awareness levels about the product benefits are projected to benefit the market growth.

Product Insights

The seeds product segment is estimated to register the fastest CAGR of more than 20% from 2022 to 2030. The hemp seeds are gaining popularity in the food and nutraceutical markets. The rising product usage in lotions, shampoos, soaps, bath gels, and cosmetics further benefits the segment growth. Hemp seeds are also used in the production of oil, which is consumed in the personal care, food & beverages, and animal feed industries. In addition, the oil is used in nutritional supplements and medicinal & therapeutic products, such as pharmaceuticals. The fibers segment led the global market in 2021 and is estimated to expand further maintaining its dominant position throughout the forecast period.

Hemp fibers are used in paper, carpeting, home furnishing, construction materials, insulation materials, and auto parts and composites. Insulation materials and bio-composites consume a significant product amount on account of their low weight, superior strength, biodegradability, and thermodynamic properties. Hemp shivs cost half the value of fibers and have several applications in different industries, which is expected to drive the segment growth over the forecast period. These are majorly used in animal bedding materials on account of their high absorbance ability, which is around four times their own dry weight.

Application Insights

The textile application segment led the market and accounted for more than 24% share of the global revenue in 2021. Hemp fabric is strong, hypo-allergic, and naturally resistant to UV light, mold, and mildew, which represents an added advantage over other fabrics In addition, it can be blended with cotton or linen, which adds stretch and strength to the fabric. Hemp seeds are rich in protein content and majorly used as birdseed and animal feed. The bird and fish feed are important markets for hemp seeds in animal nutrition. Fish and birds need fatty acids with a high share of omega-3 and omega-6 fatty acids for optimum development. The growing product demand in the animal care industry is likely to fuel the industry growth.

Hemp oil is widely used in the manufacturing of food & beverages on account of its high nutritional content, including fatty acids, proteins, and several other ingredients. Several food manufacturing processes make use of hemp seeds and oil, which is expected to propel market growth. In addition, rising consumer awareness about the product benefits is likely to fuel market growth. The product is widely used in insulation and construction materials, such as fiberboard, cement blocks, putty, stucco and mortar, coatings, and other products as a fiberglass substitute. Construction materials using industrial hemp also include roofing underlay, acoustic materials, pipe wraps, house wrap, and shingles.

Regional Insights

Asia Pacific led the market and accounted for more than 32% share of the global revenue in 2021. Economies, such as China, India, Japan, Korea, Australia, New Zealand, and Thailand, are actively involved in the production and consumption of industrial hemp and its products, such as fiber, seed, hurds, and oil. Increasing global product demand along with advancing technologies and innovation are making harvesting easier for cultivators, thereby changing the face of hemp production in the region. Increasing consumption of hemp-based food products and supplements in developing economies with a growing geriatric population is expected to drive the regional market over the forecast period.

North America is among the major consumers in the global market due to the presence of several application industries. Moreover, high consumer disposable income levels, a growing geriatric population, and rising concerns related to skin diseases and UV protection are expected to drive the demand for hemp oil in the personal care industry in the region. In Europe, the product is majorly consumed in automotive parts, construction materials, textiles, and fabrics in the form of fibers. However, the growing demand for hemp oil in the food & supplements, cosmetics, and personal care markets is expected to drive the market for hemp seeds over the forecast period.

Key Companies & Market Share Insights

Players involved in the market produce large quantities and high-quality products along with a wide range of variants, in terms of, seed size and oil composition. Potential yields and processing methods, technologies used for processing, along with the cost of production and returns, play a major role in driving the competition in the market. Market players are also focusing on increasing product cultivation and processing facilities in economies where the plant can be grown legally. Major industry players are investing heavily in R&D activities to achieve high yields from the cultivation. These players offer diverse varieties of hemp-derived products and have the ability to penetrate large markets. Some prominent players in the global industrial hemp market include:

• Parkland Industrial Hemp Growers Cooperative Ltd.

• CBD Biotechnology Co.

• Botanical Genetics, LLC

• Marijuana Company of America, Inc.

• HempMedsBrasil

• Terra Tech Corp.

• American Cannabis Company, Inc.

• HempFlax B.V.

• Industrial Hemp Manufacturing, LLC

• American Hemp

• Hemp, Inc.

• Boring Hemp Company

• Plains Industrial Hemp Processing Ltd.

• Ecofiber Industries Operations

• Valley Bio Ltd.

Industrial Hemp Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global industrial hemp market report on the basis of product, application, and region:

• Product Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

  • Seeds

  • Fiber

  • Shivs

• Application Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

  • Animal Care

  • Textiles

  • Automotive

  • Furniture

  • Food & Beverages

  • Paper

  • Construction Materials

  • Personal Care

  • Other

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa