Home > Pressrelease > Global Industrial Hemp Market size to exceed USD 310 million by 2027

Global Industrial Hemp Market size to exceed USD 310 million by 2027

  • Published Date: January 6, 2022

According to a new research report by Global Market Insights Inc., the Industrial Hemp Market size is set to surpass USD 310 million by 2027.

Increasing demand for protein-based dietary supplements and food & beverages along with increasing consumer health awareness is likely to raise the demand for hemp derivatives. Hemp seeds are enriched with various nutrients such as poly-saturated fats, poly-saturated fatty acids, amino acids omega-3, omega-6 and dietary fiber.

Growing demand of natural, biodegradable and recyclable composites is expected to propel hemp fiber market growth

Hemp fiber market was valued at USD 90 million in 2020 and is anticipated to grow at a CAGR of 6% during 2021-2027. Hemp fiber is mainly used in the textile, paper and pulp industries as it is longer and stronger than cotton. In addition, hemp fiber  is a renewable raw material and it is increasingly used in various industries such as construction, animal beds, furniture, agriculture and automobiles. Increasing interest in natural, biodegradable and recyclable products in insulation, building materials, fiber optic alternatives and automotive products is expected to drive the hemp seeds market during the forecast period.

As the legalization of hemp cultivation progressed, manufacturers and research institutes began to develop new products from industrial hemp. In addition, the use of biofuels and bioplastics is expected to increase demand over the next few years. The market value of hemp bio-composites is expected to surpass USD 17 million by 2027, growing at a CAGR of 7% from  2021 to 2027.

Browse key industry insights spread across 290 pages with 340 market data tables and 35 figures & charts from the report, “Global Industrial Hemp Market By Product (Seeds [By Derivative Product {Hemp Oil, Seed Cake, Meat, Shell}, By Application {Food & Beverages, Animal Feed, Personal Care}], Fiber [By Application {Bio-Composites, Building Materials, Textiles, Pulp & Paper}], Shives [By Application {Animal Bedding, Building Material, Garden Mulch}]), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:

Rising consumer awareness about the benefits offered by hemp seed cake will drive the product demand in animal feed

Hemp seed cake is used as a source of protein in cattle and poultry feed. Hemp seed cake is widely used for feed the young calves for improved rumen function. Also, it is fed to the laying hen to improve egg quality which shall lead to product demand from poultry industry.

Increasing demand for protein rich animal feed ingredients to increase the feed conversion rate which should boost product demand in the region during the forecast period. Growth in livestock production along with increasing demand for processed poultry products is anticipated to boost hemp seed cake demand leading to business growth.

Growing hemp feed use in pet and companion animal food will provide lucrative opportunities to the hemp seed cake market. Hemp seed cake market is anticipated to reach USD 30 million by 2027, and it is expected to grow at a CAGR of around 4.5% over the projected timeframe.

Strong application scope of industrial hemp in personal care industries owing to anti-inflammatory and anti-microbial properties should drive growth in Asia Pacific.

Asia Pacific industrial hemp market was valued at over USD 84 million in 2020 and is expected to grow at a CAGR of over 6% between 2021 and 2027 due to the strong application scope of industrial hemp in personal care industries. Hemp oil is widely used in the formulation of personal care products, cosmetic skin care products, hair care products, shampoos, soaps and bath gels due to its high content of omega 3 fatty acids.

Increasing per capita disposable income with lifestyle changes is projected to drive demand for skin care products over the projected period. The rapid surge in the personal care sector due to increased consumer awareness of health and hygiene has had a positive impact on the overall sales of the industrial hemp market in Asia Pacific.

Growing consumer preference towards natural and eco-friendly products that are safe and gentle for the skin along with an increase in demand for products manufactured from natural or sustainably produced ingredients will stimulate the use of hemp in personal care products thereby driving the market growth in the region.

Moreover, increasing efforts by manufacturers to develop high-quality and sustainable solutions are likely to propel industrial hemp market growth. Extensive R&D and technological collaborations of leading market players with other companies will further foster market growth in the region over the forecast timeframe.

The prominent players operating in the industrial hemp industry are also focusing on entering into collaborations and technological partnerships with other market participants to develop innovative products and to gain competitive edge in global market. American Cannabis Company, Marijuana Company of America, Terra Tech Corp. and Valley Bio Limited are some of the major players in the market.

Authors: Kunal Ahuja, Kritika Mamtani

Explore More on Related Topics: