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Industrial Hemp Market is forecast to reach $19.7 billion by 2025, after growing at a CAGR of 28% during 2020-2025. Increasing legalization in the cultivation of industrial hemp, functional properties of hemp seed and hemp seed oil, and their rising use in various food applications, and increasing number of chronic diseases are the major factors driving the growth of industrial hemp market.
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Industrial hemp is rich in poly-saturated fats, amino acids omega-3, poly-saturated fatty acids, omega-6, dietary fiber, and plant-based protein. Hemp has the potential of healing tumors, reducing the chances of developing diabetes, and eases pain and stiffness, as well as chronic pain which is a vital factor behind the rising demand.
Product – Segment Analysis
The seeds segment is dominating the market with the highest share in 2018, due to increasing demand for hemp grain to obtain seed oil, and food matter due to its high nutritional value and fatty acid content.
Type – Segment Analysis
The hemp fiber segment is projected to dominate the market during the forecast period. Hemp has two fiber types, bast and hurds. Bast fibers can be spun and woven, and are therefore used mainly in the textile industry. Growing awareness of the use of hemp fibers as a renewable source for the production of bioplastics and biofuels is expected to drive their demand globally.
Application – Segment Analysis
The textile industry holds the largest share in the industrial hemp market in 2018. The textile industry is one of the largest consumers on the industrial hemp market, as it is used in the manufacture of textiles, denim, apparel, fine textiles and other products. It is also used in the manufacture of several industrial textile goods, including nets, canvas bags, rope, tarps, geotextiles, and carpets. Increasing hemp demand in fiber products manufacturing will further increase the market size of the textile segment on the global industrial hemp market.
Geography – Segment Analysis
North America is dominating the market with the highest share up to 40% in 2018, due to the increasing geriatric population and growing concerns about skin diseases and UV protection, that are expected to drive demand for hemp oil from the region’s personal care industry.
Asia Pacific is a rapidly growing region in the production of biodegradable textiles for consumer and industrial applications due to increased fiber consumption. The presence of major supplier countries, including China, Australia, South Korea and India, is expected to have a positive impact on regional growth in 2018.
Drivers – Industrial Hemp Market
Growing industrial hemp demand from food industry.
The demand for industrial hemp from the food and beverage industry is increasing due to the use of hemp in food products, which are rich in essential fatty acids and vitamin E, as well as minerals such as phosphorus, potassium, sodium, magnesium, calcium, zinc, iron and protein. Hemp is mostly consumed in the form of hemp seed, raw or roasted. It is added to smoothies, cereals, yogurt, and salads. Increased consumption of plant-based protein, due to the popularity of veganism, is expected to increase global demand for hemp-based processed food products such as, flour, cheese, snacks and bars.
Challenges – Industrial Hemp Market
Government restrictions on hemp cultivation.
Commercial cultivation of the product is restricted in a number of countries around the globe, as a result of which the industry is largely dependent on imports of raw fiber, seeds and finished products. Low availability of yields, lack of innovation in harvesting and processing facilities and difficulties in transporting the product in highly regulated markets are factors that hinder market growth.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Industrial Hemp Market. In 2019, the market of Industrial Hemp has been consolidated by the top five players accounting for xx% of the share. Major players in the Industrial Hemp Market are Botanical Genetics, LLC, Ecofibre Ltd, Hemp Inc., Plains Industrial Hemp Processing Ltd., Marijuana Company of America Inc., Global Hemp Group Inc., American Hemp LLC, Valley Bio Limited, Boring Hemp Company, and HempFlax BV., among others.
In April 2019, Marijuana Company of America Inc. announced that it has officially acquired a 20% ownership interest in Natural Plant Extract of California.
In May 2019, Marijuana Company of America Inc., announced that it has signed a joint venture called Riverside Hemp Project to run farming operations in California for the purpose of growing, cultivating, manufacturing, extracting and selling legal hemp and hemp-derived CBD.
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