As per GMI Research recent report the industrial hemp market was valued at over USD 3,780 million in 2020. The market is primarily driven by rising demand of the industrial hemp market is due to the increasing awareness regarding the benefits of hemp seeds among the customers and changes occurred in food habits and growing health concerns.
Introduction of the Industrial Hemp Market
Hemp is a type of plant taken from Cannabis sativa. It is mainly used in the industries related to personal care products, food & beverages, paint, food, insulation, biofuel, pharmaceuticals, and animal feed. Hemp seeds are a rich source of two fatty acids, linolenic and linoleic. They are considered a complete source of vitamin E, vitamin B6, vitamin D, vitamin B1, vitamin B2, magnesium, potassium, and calcium. Hence, hemp seeds are amongst the rare plant-based foods that are a whole protein source that can be acknowledged as a value addition for vegetarians.
Key Players of the Market
Industrial Hemp Market Dynamics
The growing legalization to cultivate industrial hemp in many countries, growing awareness towards the advantages of hemp seed oil and hemp seed, increasing use of hemp in numerous food applications, and the rising number of chronic diseases are the significant factors bolstering the growth of the global Industrial Hemp market. Therefore, consumers are frequently choosing industrial hemp due to its easy approachability will boom the growth of industrial hemp market size. Constant technological progress and the enlargement in product offerings are bringing multiple growth opportunities to the market.
Germany and the Netherlands are massively spending on R &D activities. Moreover, as per the global industrial hemp market forecast, quick changes in food patterns and increasing health concerns will further strengthen the market growth. Hemp seeds offer several health advantages, like incredibly nutritious, reducing the risk of heart diseases, relieving dry skin, improving blood levels of fatty acids, decreasing PMS and Menopause symptoms, and others, which will positively impact the market growth. In addition, the booming need for printing inks, oil paints, solvents, varnishes, chain-saw lubricants, putty, and coating is another constituent steering demand for the market. On the other hand, according to the industrial hemp market report, the rising number of complex regulatory structures associated with industrial hemp usage will likely hinder the market growth.
Industrial Hemp Market Segmentation
Source Type Market Drivers
Based on the Source, the conventional segment is predicted to rise at a faster CAGR during the forecast period due to conventional hemp’s low costs than the organic source, coupled with the growing use of conventional hemp in construction and material. Hence, the furniture and automotive industries are forecasted to propel the segment growth in the coming years.
Type Market Drivers
Based on the Type, the hemp fiber segment is expected to rule the market during the forecast period. The growing utilization of hemp fiber in different industries, including animal bedding, agriculture, furniture, construction, and automobile, will fuel the segment’s growth. Furthermore, the application of hemp fiber to acquire bioplastics and biofuels will further drive the demand over the forecast period.
Application Market Drivers
Based on the Application, the food segment is foreseen to increase at a tremendous CAGR during the forecast period attributed to the extensive application of hemp seed oil, as it is a rich source of protein, vitamin, and omega-3 fatty acid. Moreover, rising consumer perception about the benefits of consuming hemp-based products is fueling the market growth.
Based on the region, the Asia Pacific region is estimated to lead the industrial hemp market over the forecast period due to the rising production and consumption of hemp fiber in the paper and textile paper industry. Furthermore, the legalization of industrial hemp in food additions is driving market growth in the region. On the other edge of the spectrum, the European region is expected to grow at a faster CAGR due to the increasing consumption of hemp seeds encouraged by its growing use in multiple food products such as cereals, smoothies, yogurt, and bars, especially in economies, like Germany and the Netherlands.
Industrial Hemp Market Segmentation
Market Segmentation by Source
Market Segmentation by Type
Market Segmentation by Application
Market Segmentation by Region
About GMI Research
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