What Has Been the Growth of the Industrial Hemp Market So Far?
The industrial hemp market has seen considerable growth due to a variety of factors.
• The scale of the industrial hemp market has significantly expanded in the past few years. Expected to rise from $7.34 billion in 2024 to $8.83 billion in 2025, the market's compound annual growth rate (CAGR) is estimated at 20.4%.
This substantial growth in the historical timeframe is due to a variety of factors. These include the burgeoning demand for textiles made from hemp, the enhanced awareness of hemp's eco-friendliness, its increasing employment in the production of construction materials, and the lifting of prohibition on hemp cultivation in numerous countries. Moreover, the emerging demand for CBD products derived from hemp and the escalating use of hemp in animal feed have contributed to this growth.
What Is the Forecasted Market Size and Growth Rate for The Industrial Hemp Market Size In The Coming Years?
The industrial hemp market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of industrial hemp is projected to witness a notable increase in the ensuing years. It is estimated to escalate to $18.3 billion by 2029 at a compound annual growth rate (CAGR) of 20.0%.
Such growth in the projected period can be linked to its widening scope in the automobile industry, the increased adoption of hemp in bioplastics, accelerated demand for hemp in the food and beverage sector, heightened interest in sustainable farming, and an escalating demand for hemp-based dietary supplements. Key trends expected during the forecast period encompass enhancements in hemp farming techniques, proliferating usage of hemp in pharmaceutical sectors, the advent of hemp-based packaging materials, assimilation of hemp in sustainable construction activities, and progress in genetic engineering of hemp for better productivity.
What Factors Are Driving Growth In The Industrial Hemp Market?
The anticipated growth of the industrial hemp market is fueled by the increasing desire for sustainable and eco-friendly goods. These types of products, which are crafted to reduce environmental damage through the use of renewable materials, waste reduction, and maintaining ecological equilibrium, are in high demand as a result of evolving environmental consciousness, regulatory stress, consumer preferences for eco-friendly options, and company pledges to reduce their carbon footprint. Industrial hemp is recognized for its swift growth with minimal resource investment and it appreciably lowers chemical runoff and soil erosion as it requires fewer pesticides and herbicides compared to traditional crops. The NYU Stern Center for Sustainable Business (CSB), a US-based academic research center, noted in March 2023 for instance, that despite the high inflation in 2022, products marketed as sustainable raised their market share, contributing to 17.3% of total purchases. This value reflects an increase of 0.3% from 2021 when compared to traditional products. Thus, the industrial hemp market is being spurred by this rising demand for sustainable and environmentally friendly products.
What Are The Main Segments Of The Global Industrial Hemp Market?
The industrial hempmarket covered in this report is segmented –
1) By Type: Hemp Seed, Hemp Seed Oil, Cannabidiol (CBD) Hemp Oil, Hemp Bast, Hemp Hurd
2) By Source: Conventional, Organic
3) By Application: Food And Beverages, Textiles, Pharmaceuticals, Personal Care Products, Animal Nutrition, Paper, Construction Materials, Other Applications
Subsegments:
1) By Hemp Seed: Whole Hemp Seeds, Hulled Hemp Seeds, Hemp Seed Protein Powder
2) By Hemp Seed Oil: Cold-Pressed Hemp Seed Oil, Refined Hemp Seed Oil, Hemp Seed Oil Capsules
3) By Cannabidiol (CBD) Hemp Oil: Full-Spectrum CBD Oil, Broad-Spectrum CBD Oil, CBD Isolate Oil
4) By Hemp Bast: Hemp Fiber, Hemp Textiles, Hemp Composites
5) By Hemp Hurd: Hemp Hurd For Bio-composites, Hemp Hurd For Animal Bedding, Hemp Hurd For Biofuels
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Which Emerging Market Trends Are Altering The Industrial Hemp Industry?
Key players in the industrial hemp market are concentrating on the creation of innovative items, for example, biochar made from industrial hemp, to capture carbon, enhance soil quality, and produce income through carbon credits in the pursuit of sustainable agricultural techniques. Biochar produced from industrial hemp is seen as an ecologically sustainable solution that enhances soil health and promotes carbon sequestration in the industrial hemp market. For example, in June 2024, Hempalta Corp., an agricultural technology firm based in Canada, debuted their own version of biochar, a carbon-heavy substance derived from organic materials like industrial hemp, by employing pyrolysis, a process where biomass is heated at high temperatures within an oxygen-limited setting to capture carbon. This produces a substances that boosts soil quality and health by enhancing organic carbon levels, bettering water retention, and fostering positive microbial activity. It also helps turn agricultural waste into a useful resource, allowing farmers to earn from their efforts through carbon credits as biochar meets the criteria for carbon removal initiatives. The uses for hemp-derived biochar extend to landscapes, construction as hempcrete, and environmental restoration, lending it to be an earth-friendly solution that bolsters agricultural productivity and aids climate change mitigation efforts.
Who Are the Key Players In The Industrial Hemp Market?
Major companies operating in the industrial hemp marker are:
• Curaleaf Holdings Inc.
• Aurora Cannabis Inc.
• Konoplex Group
• Plains Industrial Hemp Processing Ltd.
• Manitoba Harvest Hemp Foods Information
• Ecofibre Limited
• Elixinol
• HempFlax Group BV
• PureHemp Technology
• Zelios
• Parkland Industrial Hemp Growers Cooperative Ltd.
• Marijuana Company of America Inc.
• IND HEMP LLC
• Blue Sky Hemp Ventures Ltd.
• Bombay Hemp Company
• Panda Biotech LLC
• HempMeds Brasil
• Hempro International GmbH
• Dun Agro Hemp Group
• Greenfield Paper Company
• Hempco Food and Fiber Inc.
• Bast Fibre Technologies Inc.
• Treehouse Biotech
• The Hemp Mine
• Bastcore Inc.
• Bluebird Botanicals
• South Hemp Tecno Srl
What Is The Most Dominant Region In The Industrial Hemp Market?
North America was the largest region in the industrial hemp market in 2024. The regions covered in the industrial hemp marker report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
