Industrial Hemp Market - By Product (Seeds [By Derivative Product {Hemp Oil, Seed Cake, Meat, Shell}, By Application {Food & Beverages, Animal Feed, Personal Care}], Fiber, Shives) & Forecast, 2024-2032
Report ID: GMI3306
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Published Date: September 2024
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Report Format: PDF
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Base Year: 2023
Companies covered: 20
Tables & Figures: 378
Countries covered: 19
Pages: 220
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Industrial Hemp Market
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Industrial Hemp Market Size
Industrial Hemp Market was worth USD 242 million in 2023 and will witness a 6.2% CAGR from 2024 to 2032. This growth is driven by the increasing utilization of hemp across various sectors, particularly in textiles, food & beverages, and construction. The versatile nature of industrial hemp, which can be cultivated for its fiber, seeds, and oil, makes it a valuable commodity. Governments worldwide are easing restrictions on hemp cultivation, contributing to the surge in demand for industrial hemp-based products.
As industries explore sustainable alternatives, industrial hemp is gaining traction as an eco-friendly and renewable resource. For instance, the U.S. Department of Agriculture reported a 70% increase in hemp cultivation acreage from 2020 to 2022.
With an increasing focus on sustainability and the adoption of eco-conscious practices across industries, the demand for hemp-based products has surged. Hemp offers a renewable alternative to traditional raw materials used in textiles, construction, and food production, making it a preferred choice among businesses looking to reduce their environmental footprint. The market is poised for robust growth as industries continue to shift towards greener solutions and explore hemp’s vast potential. According to the Environmental Protection Agency, the construction sector could reduce its carbon footprint by 25% by incorporating hemp-based materials.
The industrial hemp market is set for strong growth, driven by the rising demand for sustainable products in textiles, construction, and the food & beverage industry. Hemp offers significant environmental benefits, such as reduced water usage and lower pesticide requirements, making it an attractive alternative to conventional materials.
For instance, according to the World Wildlife Fund, hemp requires 50% less water than cotton. The increasing consumer awareness about sustainability and the growing popularity of plant-based products further amplify market growth. According to a report by the Plant Based Foods Association, the plant-based food sector grew by 27% in 2023, reflecting this trend.
However, despite the favorable outlook, the industrial hemp industry faces challenges. Regulatory hurdles and the complexity of hemp cultivation can restrain market expansion. In many regions, strict regulations and the need for clear distinctions between hemp and cannabis cultivation have created complexities for growers. In addition, the market expansion may be hindered by a lack of infrastructure for processing and manufacturing hemp-based products. These challenges underscore the importance of supportive policies and investments in infrastructure to facilitate industry growth.
Industrial Hemp Market Trends
The market will witness accelerated growth through 2032, owing to increasing investment in research and development of hemp-based products. Companies are exploring innovative ways to integrate hemp into their offerings, leading to the creation of new and diverse products across various sectors.
For instance, in August 2024, Cannabis Orchards Inc., a Canadian industrial hemp breeding company based in Kemptville, Ontario, secured over half a million dollars in funding from the AgriScience Program and the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP). The company received a $404,305 grant from the AgriScience Program to support its project focused on developing seedless triploid hemp lines for enhanced production of cannabidiol (CBD) and minor cannabinoids, including cannabigerol (CBG) and cannabichromene (CBC).
Additionally, the rise of sustainable fashion has contributed to the popularity of hemp textiles, which are valued for their durability, breathability, and eco-friendliness. Hemp is also gaining momentum in the food & beverage sector, with its seeds and oil being used as nutritional ingredients in a range of products, including protein bars, snacks, and beverages. Hemp’s rich nutritional profile, which includes essential fatty acids and protein, makes it an appealing choice for health-conscious consumers. As awareness of hemp’s health benefits grows, so will its adoption in the food & beverage industry, driving market expansion.
Industrial Hemp Market Analysis
The textiles segment was worth USD 18.8 million in 2023 and will grow at 5.9% CAGR through 2032. Hemp fibers are increasingly being adopted in the textile industry due to their sustainability and versatility. These fibers are known for their strength, durability, and resistance to abrasion, making them suitable for producing a wide range of products, including clothing, bags, and home textiles.
The growing demand for eco-friendly fabrics is driving the use of hemp in sustainable fashion. Consumers are becoming more conscious of the environmental impact of their purchases, leading to increased interest in sustainable materials like hemp. The textile industry's transition towards environmentally responsible practices is expected to bolster the adoption of hemp-based fabrics, further contributing to market growth.
The food & beverages segment will reach around USD 103.3 million by 2032, exhibiting over 6.7% CAGR during the projection period, driven by the increasing use of hemp seeds and oil as nutritious ingredients. Hemp seeds are a rich source of essential fatty acids, proteins, vitamins, and minerals, making them an appealing addition to various food products. They are commonly used in protein powders, health bars, snacks, and beverages.
With growing consumer demand for plant-based and protein-rich foods, hemp has gained popularity as a nutritious alternative to conventional ingredients. The food & beverages industry is leveraging the health benefits of hemp to cater to the increasing demand for healthy, organic, and sustainable products. This trend will fuel the growth of the hemp-based food & beverages segment, contributing to the overall expansion of the industrial hemp industry.
North America industrial hemp market will demonstrate 7.5% CAGR over the study timeframe, reaching USD 87.5 million by 2032. The legalization of hemp cultivation under the 2018 Farm Bill in the United States has been a significant catalyst for market growth in the region. This legislation has encouraged farmers to explore hemp cultivation, driving the availability of hemp-based products in the North American market.
The U.S. and Canada are key players in the regional market, with both countries demonstrating strong demand for hemp-based products across various sectors, including textiles, food & beverages, and construction. The increasing awareness of hemp's environmental benefits, combined with a supportive regulatory environment, has led to a surge in investment and innovation within the industry. As North America continues to embrace sustainable practices, the market is set to thrive in the region.
Industrial Hemp Market Share
These companies are focused on expanding their product portfolios and increasing their production capacities to meet the growing demand for hemp-based products. Strategic partnerships, mergers, and acquisitions are common in the industry as companies seek to strengthen their market position and capitalize on expanding market opportunities.
Industrial Hemp Market Companies
The competitive landscape of the industry includes prominent players such as
Industrial Hemp Industry News
In July 2024, Canadian hemp food specialist Fresh Hemp Foods expanded its wellness foods portfolio by acquiring the U.S.-based snack brand The Humble Seed. While financial details were not disclosed, Fresh Hemp Foods, which owns the Manitoba Harvest brand, announced plans to broaden The Humble Seed's product range across grocery stores and e-commerce platforms throughout North America.
In March 2024, Hemp, Inc. revealed that hemp seed meal is nearing approval for use in animal feed, beginning with diets for laying hens. This major development follows the preliminary approval of a definition for hemp seed meal by a committee of the Association of American Feed Control Officials (AAFCO) earlier in the year. It marks a crucial step toward the legal distribution of hemp seed meal as an authorized feed ingredient in the United States.
The global industrial hemp market report includes in-depth coverage of the industry with estimates & forecast in terms of volume in Kilo Tons & revenue in USD Million from 2021 to 2032 for the following segments:
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