Industrial Hemp Market size is set to grow by USD 13.90 billion from 2024-2028, High demand from the textile industry boost the market, Technavio

NEW YORK, July 17, 2024 /PRNewswire/ -- The global industrial hemp market size is estimated to grow by USD 13.90 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 25.25%  during the forecast period. High demand from the textile industry is driving market growth, with a trend towards growing strategic collaboration, partnership, and M and A. However, challenges associated with the production of hemp  poses a challenge. Key market players include Aurora Cannabis Inc., Bombay Hemp Co. Pvt. Ltd., Boring Hemp Co., Canopy Growth Corp., Charlottes Web Holdings Inc., CV Sciences Inc., Deep Nature Project GmbH, Dun Agro Hemp Group, Ecofibre Ltd., Elixinol Wellness Ltd., GFR Ingredients Ltd., Hanma Investment Group Co. Ltd., Hemp Horizons Private Limited, HempFlax Group BV, HemPoland Sp zoo, Liaoning Qiaopai Biotech Co. Ltd., Medical Marijuana Inc., Nutiva Inc., Parkland Industrial Hemp Growers Co op. Ltd., and Tilray Brands Inc..

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Market Driver

Vendors in the industrial hemp market are implementing strategic moves to expand their market share and global presence. These strategies include collaborations, partnerships, and mergers and acquisitions. For instance, in February 2024, Aurora Medicine UK formed a partnership with Script Assist, enabling the Script Assist platform to offer high-quality hemp-derived medications through their portal. Additionally, Aurora acquired MedReleaf Australia in the same month. Such strategic alliances are expected to provide a competitive edge in the market and contribute positively to the growth of the global industrial hemp market during the forecast period. 

The Industrial Hemp market is thriving in the modern economy as a clean alternative to fossil fuels, reducing carbon emissions and contributing to environmental conservation. Hemp farms are gaining popularity among industry professionals for their economic benefits. A recent roundtable discussion highlighted the versatility of hemp in various industries, including dietary supplements, pigmentation for cosmetics, and biofuels. Hemp seeds and stalks are used to produce lipids, carbohydrates, insoluble fiber, and cellulose fibers. In the health sector, hemp is used for dietary supplements, addressing issues like inflammation, redness, and ageing. The industry also includes biofuels as a renewable, clean energy source, addressing the climate crisis. Additionally, hemp is used in food and beverages, nutraceuticals, and bioplastics, catering to vegan consumers. The market includes pesticide-free production, ensuring high-quality hemp hurds for various applications. 

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Market Challenges

• Industrial hemp is a versatile crop with various applications, including textiles, food, and construction materials. However, its production presents challenges for farmers due to specific climate requirements and regulatory issues. Hemp thrives in mild climates with humid atmospheres, annual rainfall of 25-30 inches, and well-drained loam soils. Regulatory hurdles arise due to the close relationship between hemp and marijuana, as both belong to the same plant species. Marijuana, which contains high THC levels, is illegal in many countries, including the US, leading to confusion among farmers regarding the legality of hemp production. This uncertainty negatively impacts the production rate of hemp and, consequently, the growth of the global industrial hemp market.
• Industrial hemp is a versatile crop with growing applications in various industries, including biofuel, bioplastic, and cellulose fibers. Hemp's valuable components include linoleic acid, gamma linolenic acid, and lipids, making it attractive to vegan consumers. However, challenges exist, such as high input costs, weather conditions, and the need for machinery improvements. Hemp seeds and stalks, hurds, oils, and fibers offer agricultural and environmental benefits. Hempseed and hemp oil are used in supplementary nutrition and pharmaceuticals. Hemp fibers are primary ingredient bases for sustainable and cheap textiles. Companies like HempMeds, HempFlax, and those with Dutch headquarters are leading the way in innovation, producing hemp fiber, hemp cultivation, and breakthroughs in hemp stalks, seeds, roots, and leaves for inflammatory properties.

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Segment Overview 

This industrial hemp market report extensively covers market segmentation by  

1. Product 
• 1.1 Seeds
• 1.2 Fiber
• 1.3 Shivs
2. Application 
• 2.1 Textile
• 2.2 Food and beverages
• 2.3 Personal care
• 2.4 Animal care
• 2.5 Others
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Seeds-  The global industrial hemp market's seeds segment holds a substantial share, reaching a significant size in 2023. Hemp seeds, rich in protein and essential fatty acids, fuel the food and beverage industry with products like hemp milk, oil, and protein powder. Consumer preference for organic and natural foods propels the demand for organic hemp seeds, free from harmful chemicals and pesticides. Hemp seeds come in two types: hulled (hemp hearts) and whole. Hemp hearts, known for their nutty flavor and high nutritional value, are popular. Whole hemp seeds, rich in fiber, also gain traction. Hemp seed oil, with moisturizing properties and essential fatty acids, is used in food and cosmetics. The organic hemp seeds segment's growth is driven by the rising demand for organic and plant-based products, contributing to the seeds segment's expansion in the industrial hemp market.

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Learn and explore more about Technavio's in-depth research reports

The global hemp market is witnessing rapid growth due to its versatile applications in textiles, food, and construction materials. In the US, the cannabis market is expanding swiftly, driven by increasing legalization and demand for both medical and recreational use. The global CBD oil market is booming, fueled by rising awareness of its therapeutic benefits for pain, anxiety, and sleep disorders. Key players in these markets are focusing on innovation and quality to meet the growing consumer demand and regulatory standards.

Research Analysis

Industrial hemp is a versatile and sustainable crop with a wide range of applications in various industries. It is a rich source of biofuel, bioplastic, cellulose fibers, linoleic acid, gamma linolenic acid, and vegan-friendly nutrients like lipids and carbohydrates. Hemp contains insolifiable fiber, making it an excellent alternative to traditional fossil fuels and synthetic materials. Hemp cultivation offers agricultural benefits, including improved soil health and reduced need for pesticides. The crop thrives in warm and cold temperatures, making it a viable option for farmers in diverse climates. Hemp fibers are used to produce textiles, paper, and construction materials, while hempseed and hempseed oil are used for food and supplementary nutrition. Industrial hemp is also used in the production of biodegradable plastics, bioplastics, and pharmaceuticals. Machinery improvements have made hemp cultivation more efficient, reducing input costs and increasing production. Despite these advantages, weather conditions can still impact crop yields, making it essential to monitor and adapt to changing climate patterns. Overall, industrial hemp offers significant environmental benefits and a diverse range of applications, making it a promising crop for the future.

Market Research Overview

Industrial hemp is a versatile plant with a wide range of applications in various industries. Its seeds and stalks are rich sources of valuable components such as lipids, carbohydrates, insoluble fiber, and proteins. Hempseed oil is a primary ingredient base for vegan consumers in the food and beverage industry, while hemp fibers are used to produce biofuels, bioplastics, and cellulose fibers. Hemp is also a sustainable and cheap alternative to fossil fuels, providing clean energy sources and reducing carbon emissions in the modern economy. Hemp cultivation offers agricultural benefits, including improved soil health and reduced need for pesticides. Hemp stalks, seeds, roots, leaves, and hurds are all utilized for different purposes. Hemp fibers have inflammatory properties and are used in the production of pharmaceuticals and dietary supplements. Industry professionals recently held a roundtable discussion on the latest machinery improvements and breakthroughs in hemp production, focusing on optimizing hemp cultivation under various weather conditions, including warm and cold temperatures. The industrial hemp market encompasses multiple industries, including biofuels, renewable energy, food and beverages, nutraceuticals, and textiles. Hemp's versatility extends to various applications, such as pigmentation in paints, anti-aging and anti-redness properties in cosmetics, and even as a replacement for animal-derived ingredients in vegan products. The environmental benefits of hemp are significant, as it requires fewer resources and produces less waste compared to traditional agricultural crops. Overall, the industrial hemp market offers a clean, sustainable, and cost-effective solution for various industries in the face of the climate crisis.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Seeds
• Fiber
• Shivs
• Application
• Textile
• Food And Beverages
• Personal Care
• Animal Care
• Others
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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