Industrial Hemp Market Analysis

Industrial Hemp Market Analysis

Hemp fabric is highly absorbent, mold-resistant, more insulating than cotton, and resistant to harmful UV rays. Combined with materials such as silk, linen, and cotton, it provides long-lasting products with consistent quality and softness. The expansion of the range of bio-based fabrics for industrial applications such as nets and geotextiles are expected to drive demand for hemp fabrics. The global industrial hemp market from textile application was valued at USD million 15.5 in 2020 and is anticipated to grow at a CAGR of 5.5% through 2027.

Growing demand for bio-based textiles on account of their sustainability and eco-friendly characteristics should have major impact on the market growth. Also, strict government norms on handling the problems of textile pollution and water scarcity have driven the textile industry on adoption of sustainable productions which is anticipated to create business opportunities for industrial hemp fiber thus leading to market growth.
 

Hemp seed market for food and beverages is projected to gain a value of around USD 74 million by 2027, growing at a CAGR of over 6.5% during the assessment period. Rising consumer consciousness about healthy lifestyle, increasing prevalence of chronic disorders including diabetes, blood pressure, obesity is and increasing incidences of intolerance for animal protein is projected to drive the demand for plant-based protein.
 

Hemp seeds are majorly used in food products and dietary supplements in the form of hemp milk, raw seeds, and hemp protein. Hemp is naturally gluten-free, GMO-free, trypsin inhibitor-free, and has very little chemical residue. Hemp protein is highly nutritious, easy to digest, and is a rich source of amino acids essential to meet the protein needs of the human body. Increasing consumer consciousness towards calorie reduction among athletes and gym professional across the globe should promote supplements industry growth.
 

Hemp with a THC content of less than 0.2% also known as cannabis is legal for use in foods, beverages, and dietary supplements. The Cannabidiol (CBD) present in hemp have several medicinal properties and the CBD oil has potential for treating tumours, reducing the likelihood of diabetes and relieves stiffness and pain, including chronic pain owing to which it has wide application in dietary supplements.
 

Rising demand for supplements targeting health, mood, stress, and anxiety are expected to witness growth thereby driving the demand for hemp-based products. Hemp seeds are a rich source of protein and fatty acids and are used in many foods and beverages, including salad, oatmeal, granola bars, protein shakes, dietary supplements, and dairy alternative. Growing demand for convenient and safe protein sources to meet daily nutrient requirement is projected to accelerate the demand of hemp seeds. In addition, supporting government policies and regulations on hemp-based food products will boost demand for hemp seeds in upcoming years.
 

North America industrial hemp market value is anticipated to reach USD 87.5 million by 2027 and is expected to grow at a CAGR of 7.5% over the review period. Cannabidiol is a naturally occurring compound extracted from industrial cannabis and is used to cure a variety of human diseases. These products offer several benefits such as protection against Alzheimer's disease, anti-inflammatory effects, and help in the treatment of epilepsy and mental disorders. CBD is widely used in the treatment of cancer and withdrawal symptoms. These are important factors driving demand for CBD products in North America.
 

The hemp oil is widely used in pharmaceutical products owing to its benefits of relieving pain, anti-inflammatory properties, and has potential for treating tumours, reducing the likelihood of diabetes and relieves stiffness and pain, including chronic pain. Aging and growing population along with emerging medical conditions is all driving the pharmaceutical industry in the region which is anticipated to stimulate product demand for pharmaceutical applications.
 

CBD skin care products increase skin hydration, which is a major cause of consumers suffering from skin-related conditions such as eczema, dryness and psoriasis. These products are effective in treating acne and have a significant impact on demand growth. In addition, in skin care, CBD provides an anti-aging solution and is effective for all skin types.
 

This is expected to continue to be a key factor driving growth in demand for CBD skin care products. Positive regulatory outlook in the U.S., such as the passage of the 2018 Agricultural Bill, which legalizes industrial cannabis cultivation, is to increase the number of players involved in the cultivation which will support the industrial hemp market growth.