Organic Hemp Market - By Product (Hemp Seed, Hemp Fiber, Hemp Shives, Hemp Dust), By Distribution Channel (Direct, Indirect) & Forecast, 2022-2030

Organic Hemp Market Size

Organic Hemp Market size recorded a revenue of over USD 90 million in 2021. Due to the strong focus on nutritious animal feed production, the industry is expected to depict a CAGR of more than 13% from 2022 to 2030.
 

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Interest in organic hemp and other ingredients has accelerated in the past decade, particularly for use in animal feed products. Pet supplement brands, for example, are addressing consumer demand for nutritional products that contain hemp extracts. Their goal is to conduct extensive product research to ensure the well-being and safety of animals and support the agricultural industry. In February 2022, multiple animal health and agricultural organizations inked a joint open letter. The AAFCO (Association of American Feed Control Officials), Pet Food Institute, and the American Feed Industry Association, alongside 14 industry groups, inked the letter. Such initiatives are urging policymakers and agricultural leaders to support the education and research on hemp-based ingredients in pet foods and other animal feed products. The rising emphasis on the production of nutritious animal foods will foster the organic hemp industry development.
 

Hemp fiber has long been used as a preferred building material due to its durability and supremacy. Varied product inventors come up with ways to convert this fiber into construction materials, including building blocks, wood, and flooring materials. Hempcrete and hemp wood are among the well-known hemp-based building materials. Burgeoning construction activities, especially in developing economies, will therefore generate lucrative opportunities for the organic hemp market expansion over the forthcoming years.
 

Lack of research and development to hinder industry growth

Despite favorable product attributes, the lack of research and development activities on organic hemp extracts is impacting its market and consumer perception. In June 2022, the EU marketing authorization of CBD (cannabidiol) as a novel food, for example, was put on hold by EFSA, a food safety agency, quoting the need for more data on the impact of light chemical hemp extract compounds on human health. These regulations on the use of hemp may create roadblocks to steady industry expansion. However, growing consumer interest in developed and emerging regions may prompt companies and other agencies to undertake the required research activities, pushing market penetration in the future.
 

Organic Hemp Market Analysis

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In terms of distribution channel, the organic hemp market is divided into direct and indirect categories. The indirect segment among these is expected to record revenue worth more than USD 139 million by 2030 owing to the expansion of retail chains offering hemp products. For instance, in November 2021, Hemp, Inc., a frontrunner in the industrial hemp space, announced that USA Grocer, a Florida-based retailer, had begun offering its line of King of Hemp products. Such initiatives to expand the reach of quality hemp products to customers will strengthen industry demand.
 

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Based on product, the organic hemp market is segmented into hemp fiber, hemp shives, hemp seed, and hemp dust. Consumer awareness regarding the benefits of organic hemp fibers has increased in recent times. Varied legislations to promote the supply, import, and licensing of hemp fiber products have also been introduced worldwide, supporting the segmental expansion. The industry share from the hemp fiber segment is poised to depict a CAGR of more than 13% through 2030.
 

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Hemp fiber is adopted in textiles, building materials, pulp & paper, and bio-composites, among other applications. Among these, product usage in pulp & paper applications has increased, mainly due to the rising awareness pertaining to the benefits of organic hemp papers over wood pulp papers, such as high recyclability and longevity. This type of fiber is also among the strongest natural fibers, which ensures the durability and quality of the paper. Furthermore, since hemp papermaking requires fewer chemicals, product demand from the hemp paper & pulp application segment will grow over the forecast spell.
 

On the regional front, the Asia Pacific organic hemp market will be valued at USD 129 million by 2030. This is attributable to the robust presence of organic hemp producers and the introduction of favorable regulatory policies. Regional hemp companies are also gearing up to increase export activities to make hemp more readily accessible. For instance, in September 2021, India Hemp Organics, a prominent supplier of hemp products, unveiled plans to export its medical, nutritional, and topical skin care products containing hemp overseas, thus contributing to regional industry expansion.
 

Organic Hemp Market Share

• The Tonik
• Bioriginal Food & Science Corp.
• Organicway Inc.
• Connoils LLC
• Manitoba Harvest Hemp Foods
• Linwoods
• Qemp Zero Peppermint
• Pocono Organics
• Lotus Organics+
• Kemin Industries

are some of the prominent organic hemp market players. These companies are emphasizing certified product range expansion strategies to boost their presence in the global market. For instance, in June 2022, Kemin Industries launched LuxivaTM hemp cannabidiol distillates. These products, which were grown and processed in the Midwest of the U.S., received organic certification from the USDA (U.S. Department of Agriculture).
 

Impact of COVID-19 Pandemic

In wake of the COVID-19 pandemic, several research studies have been initiated to identify potential treatment options. In 2022, researchers from Oregon State University revealed that hemp compounds identified through a chemical screening technique have the ability to prevent coronavirus entry into human cells. The study also found that the binding of a pair of cannabinoid acids to the spike protein can block the process of virus infection. These findings will likely assert a positive influence on the global industry expansion, even during the pandemic.
 

By Distribution Channel

• Direct
• Indirect

Product By Application

• Hemp Seed
  • Food and Beverages
  • Personal care
  • Hemp Dust
  • Animal Feed
• Hemp Fiber
  • Biocomposites
  • Pulp & Paper
  • Building Materials
  • Textiles
  • Hemp Dust
• Hemp Shives
  • Animal Bedding
  • Garden Mulch
  • Building Material
  • Hemp Dust
• Hemp Dust
  • Garden Mulch
  • Animal Bedding
  • Hemp Dust

By Region

• North America
  • Canada
  • U.S.
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Austria
  • Russia
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • India
  • Thailand
  • Japan
  • South Korea
  • Australia
  • New Zealand
• Latin America
  • Brazil
  • Chile
  • Mexico
• Middle East & Africa
  • South Africa
  • Morocco
  • Ghana