Organic Hemp Market Size

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.