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The global industrial hemp market is slated to value USD 16.75 billion by 2030, advancing at a CAGR of 16.8% from 2022 to 2030. Surging incidences of chronic diseases globally such as diabetes, rising use of hempseed oil and hemp seeds in a number of food applications, growing use of non-psychotropic cannabinoid cannabidiol hemp oil in the pharmaceutical sector, along with the increasing legalization in the cultivation of industrial hemp has positively influenced the market size over the years.
Hemp is increasingly being cultivated in both developed as well as developing countries as it is needed to produce a number of industrial and consumer products. Notably, industrial hemp is derived from cannabis sativa L., which is not marijuana but is a different variety of the same species. Hemp helps in reducing pain by altering pain perception pathways in the brain. It also helps in preventing conditions that lead to chronic pain like migraine, arthritis, and endometriosis.
In addition to the above, it also reduces cancer treatment side effects such as loss of appetite. The hemp industry continues to offer considerable innovations with regard to cultivation and machinery to develop hemp plants effectively. Innovation in hemp cultivation continues to give farmers the capability to drive the plantation of industrial hemp. Although, companies offering hemp and hemp-derived products must comply with several regulatory guidelines worldwide.
The rising legalization of the cultivation of hemp is supplementing manufacturers and research institutions to develop novel products from industrial hemp. The aforementioned factors are known to drive the global industrial hemp market size in the times to come.
Based on product, hemp seeds have substantial use in the food and nutraceuticals industry. Improving purchasing power across the globe has driven the need for high-quality cosmetics and personal care items such as shampoos, soaps, lotions, and bath gels. Hemp seeds are widely used in the production of oil, which is consumed in food and beverages, personal care items, and animal feed sectors.
Hemp fibres are also gaining popularity over time. Hemp has two types of fibers- bast and hurds. Bast fibers can be spun and woven, and are hence used in the textile industry. Hurd finds use in building construction, agriculture, animal bedding, the automobile sector, and furniture. Increasing awareness regarding hemp fibers as a renewable source to manufacture biofuels and bioplastics is expected to drive their demand, globally.
Considering application, hemp oil is used in the production of food and beverages due to its high nutritional value, such as protein, fatty acids, and many other ingredients. A number of food manufacturing processes use hemp seeds and oil which is expected to drive market growth. Additionally, growing consumer awareness regarding the benefits of the product will continue to drive industry growth. The product is used in construction and insulation materials, like fiberboard, putty, cement blocks, coatings, and as a fiberglass substitute. Construction materials using industrial hemp include pipe wraps, house wraps, shingles, and roofing underlay.
Geographically speaking, Asia Pacific emerged as a profitable revenue pocket for industrial hemp providers led by nations like India, Japan, China, New Zealand, and Australia, which have emerged as key producers and consumers of industrial hemp and its products like seed, fiber, oil, and hurds. High demand for the product along with the integration of advanced technologies to harvest the product will continue to drive the regional business scope.
In addition to the above, the European industrial hemp market is gradually gaining traction owing to the presence of a large consumer industry for food, beverages, personal care items, and dietary supplements. The rising consumption of hemp seeds in food and other products like yogurt, smoothies, bars, and cereals is likely to bolster market growth. The demand for hemp in the form of these products is relatively high in countries like the Netherlands, and Germany.
Research Support Specialist, USA