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The industrial hemp market size is projected to increase by USD 13.90 billion at a CAGR of 25.25% between 2023 and 2028. Market growth is driven by the surge in demand from the textile industry, especially in key markets like China and the US, due to hemp fibers' durability and use as a substitute for cotton and synthetic fibers. The technological, ecological, and economic advantages of hemp contribute to its rising demand for manufacturing various products like canvas, rope, and clothing. Policy support, such as the Government of Uttarakhand's initiative for industrial cultivation, further drives market expansion.
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The high demand from the textile industry is a key factor driving the market growth. The market encompasses the production and utilization of hemp fiber and seeds for various applications. It is derived from the stalks and hurds, are renowned for their strength and durability, making them suitable for textile yarn production. They serve as a sustainable alternative to cotton and synthetic fibers and are used in manufacturing biofuels, bioplastics, and cellulose fibers. Hemp seeds contain valuable nutrients such as linoleic acid, gamma linolenic acid, lipids, carbohydrates, and insoluble fiber, making them a popular choice among vegan consumers. Further, hemp oil, extracted from the seeds, is rich in omega-3 and omega-6 fatty acids.
The cultivation, with advancements in machinery and improvements in pharmaceutical applications, has gained traction due to its agricultural and environmental benefits. Input costs, weather conditions, and technological breakthroughs influence the crop's yield and profitability. Hemp fibers, seeds, and oils are used in a range of industries, including textiles, hemp-based food, and pharmaceuticals. Companies such as HempMeds, HempFlax, and HempMedics, with Dutch headquarters, are leading innovators in the hemp industry. These factors are expected to drive the market growth and trends during the forecast period.
The high demand from the textile industry is notably driving market growth. Due to their strongest and most long-lasting textile fibers, hemp fibers are being used more frequently as a raw material for the production of textile yarn. They are also thought of as a cotton and synthetic fiber replacement. The superiority of hemp in terms of technology, ecology, and economics has also increased demand for it in the textile industry, where it is used to make a variety of goods. Canvas, sailcloth, rope, sacks, clothing, furniture, specialty textiles, and other products are all made with hemp.
Moreover, hemp fibers exhibit remarkable capillary action, superior moisture absorption, and outstanding breathability because of the numerous fissures and tiny pores that are present in them. As a result, military clothing that is waterproof, windproof, wear-resistant, and antimicrobial is made with hemp fibers. Due to their qualities, including moisture permeability, effective heat dissipation, and resistance to static and ultraviolet rays, hemp fibers are also used in the production of summer clothing. Hence, the abovementioned factors will drive the growth of the market during the forecast period.
The growing demand for organic hemp-based foods is an emerging trend in the market growth. Food products made from organic ingredients are in high demand. However, the cost of organic food items is typically higher than that of conventional ones. The higher production costs and consumers' willingness to pay more for organic food products are the reasons behind the premium price.
Further, the demand for organic food products is rising as people become more aware of the detrimental effects of ingredients (liver damage, irritability, or agitation) used in the food and beverage industry. This trend is applicable to hemp food products, and many businesses are currently selling organic hemp food items to meet the needs of this clientele, including Boring Hemp Co., Canopy Growth Corp., Charlottes Web Holdings Inc., and HempFlax Group BV. Therefore, the growing demand for hemp-based foods will augment the growth of the market during the forecast period.
Challenges associated with the production of hemp are the major issues impeding the market growth. Although hemp is used more frequently in a variety of applications, growing it has proven difficult for farmers all over the world. Specific climatic requirements for hemp production include a temperate climate, a humid atmosphere, at least 25 to 30 inches of annual precipitation, well-drained loam soils, and compact soils. Additionally, hemp farming faces regulatory difficulties because there are very few genetic differences between hemp and marijuana.
Additionally, due to its high THC content, marijuana is illegal to produce in many nations, including the US. This is because marijuana is categorized by the US Federal government as a dangerous drug. Cannabis contains 3%–15% THC by weight, compared to 0.3% in hemp. Additionally, the legality of each plant is determined by the amount of THC present in hemp and marijuana. Since farmers are unsure of the differences between hemp and marijuana, hemp production is having an impact on hemp production rates, which will have a negative impact on the growth of the global market during the forecast period.
The seeds segment will account for a major share of the market's growth during the forecast period.? Organic hemp seeds are increasingly popular due to consumer demand for natural and organic food. Hemp fibers and hempseed oil are used in industrial applications, such as in the production of hurds, oils, and pharmaceuticals. Hemp cultivation benefits from agricultural and environmental advantages, with improvements in machinery and input costs driving growth. Hemp stalks, seeds, and roots are used for fiber production, while hemp hurds are used for insoluble fiber and cellulose.
The seeds segment was valued at USD 1.28 billion in 2018. Industrial hemp is a versatile crop with various applications in the biofuel, bioplastic, and cellulose fibers industries. The global hemp market experienced significant growth in 2022, with the hempseed segment leading due to its high nutritional value. Hemp seeds are rich in protein, essential fatty acids, and lipids, including linoleic acid and gamma-linolenic acid. Vegan consumers prefer hempseed for its nutritional benefits and its use in food and beverage products like hemp milk, hemp oil, and hemp protein powder.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. The market in the APAC region is experiencing substantial growth, driven by the increasing utilization of hemp-derived products in modern economies. China, a historical hemp cultivator, is the largest producer in the region and contributes significantly to the global market. Hemp leaves are a primary ingredient base for various industries, including dietary supplements, pigmentation, and nutraceuticals. Hemp offers sustainable, cheap, and clean alternatives to fossil fuels and reduces carbon emissions, contributing to environmental conservation.
Further, industry professionals recently held a roundtable discussion in a hybrid format to explore the economic benefits of hemp farming. Hemp is used in multiple industries, including food and beverages, biofuels, and renewable energy sources, making it a valuable resource in addressing the climate crisis. Its inflammatory properties are beneficial for ageing, redness, inflammation, and hair fall. Hemp-based products offer a cheap, clean alternative to traditional methods and are gaining popularity as a biofuel and renewable energy source. Hence, all the abovementioned factors will boost regional market growth during the forecast period.
The market is fragmented in nature. Some significant players include 22nd Century Group Inc., Aurora Cannabis Inc., Bombay Hemp Co. Pvt. Ltd..
The market growth and forecasting research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
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., HempFlax Group BV, HemPoland Sp zoo, Liaoning Qiaopai Biotech Co. Ltd., Medical Marijuana Inc., Nutiva Inc., Parkland Industrial Hemp Growers Co op. Ltd., Boring Hemp Co., Canopy Growth Corp. and Tilray Brands Inc.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In the modern economy, industrial hemp emerges as a sustainable and cheap alternative to conventional materials, particularly in textiles. The plant's primary ingredient base, derived from its leaves, offers numerous benefits. Hemp fibers exhibit superior tensile strength, surpassing that of cotton by almost eight times. These fibers are also non-irritating and hypoallergenic, making them an ideal choice for various textile products, including rope, net, canvas bags, carpets, and geotextiles. Moreover, hemp's eco-friendly attributes contribute significantly to environmental conservation. Its high resistance to rot, mold, and seawater, coupled with UV resistance, ensures durability and color retention.
Additionally, hemp's industrial applications extend beyond textiles, with the potential as a clean alternative to fossil fuels and a renewable clean energy source. Industry professionals gathered for a roundtable discussion to explore the economic benefits of farming. The hybrid format event brought together various industries, including dietary supplements, pigmentation, ageing, redness, inflammation, hair fall, biofuels, and food and beverages. Hemp's nutraceutical properties and potential as a biofuel source were also discussed, offering promising solutions to the climate crisis.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25.25% |
Market Growth 2024-2028 |
USD 13.90 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
18.73 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
China, US, Germany, Canada, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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