Industrial Hemp Market

Industrial Hemp Market Outlook (2024 to 2034)

The global industrial hemp market is projected to increase from a valuation of US$ 6.6 billion in 2024 to US$ 25.7 billion by the end of 2034. Sales of industrial hemp are evaluated to rise at a noteworthy CAGR of 14.5% from 2024 to 2034.

Industrial hemp, commonly referred to as cannabis, is gaining prominence in various medicinal and pharmaceutical applications. Hemp seeds contain fats, protein, and other beneficial compounds.

Many individuals are turning to hemp for relief from constipation, high cholesterol, eczema, arthritis, and other health conditions. Due to its protein-rich content, hemp is increasingly favored as a hunger-curbing option. Classified within the botanical family of cannabis sativa, industrial hemp is specifically cultivated for industrial and consumable purposes.

The trend of hemp-infused beverages is on the rise in mixology, driving global demand for industrial hemp. These seeds are considered a nutritionally complete food source, suitable for consumption whole or shelled. Health-conscious individuals across different regions are incorporating industrial hemp into their meals, contributing significantly to industrial hemp market growth.

Key Market Growth Drivers

• Farmers require less water and pesticides to cultivate hemp in large quantities, making industrial hemp a sustainable alternative to traditional crops.
• In addition to hemp seeds and oils, hemp trees are used for cordage, including twine, yarn, rope, cables, and string. Their strength and durability make them ideal for such purposes, offering industrial hemp suppliers an opportunity to expand their customer base.
• A study published in Food Chemistry indicates that hemp seed extract has antioxidant effects in lab tests. These compounds also exhibit neuroprotective and anti-inflammatory properties, contributing to immune system regulation.
• Omega-3 fatty acids from hemp seeds are believed by several doctors to improve heart health and reduce the risk of issues like arrhythmias and cardiovascular diseases.
• Increasing omega-3 intake has been shown to alleviate acne and chronic inflammation. As more people prioritize skincare and recognize the importance of appearance in a materialistic society, hemp oils are gaining popularity.
• Industrial hemp seeds contain polyunsaturated fatty acids, which have anti-cancer effects. In addition, they can process other bioactive compounds that help reduce the formation of cancer cells.
• These seeds also reduce the enzyme acetylcholinesterase, a primary factor in aging and a leading cause of certain brain disorders.

Report Attribute	Detail
Industrial Hemp Market Size (2024E)	US$ 6.6 Billion
Forecasted Market Value (2034F)	US$ 25.7 Billion
Global Market Growth Rate (2024 to 2034)	14.5% CAGR
Canada Market Growth Rate (2024 to 2034)	15% CAGR
China Market Value (2034F)	US$ 2.8 Billion
North America Market Share (2024E)	23.9%
East Asia Market Share (2034F)	23.1%
Key Companies Profiled	HempFlax Group B.V; American Hemp; Manitoba Harvest; Endoca; Canopy Growth Corporation; Yunnan Industrial Hemp; Aurora Cannabis; Valley Bio Limited; Marijuana Company of America Inc.; Cronos Group Inc.; Hemp Oil Canada; Dun Agro Hemp Group; Colorado Hemp Works; Cannah International; South Hemp Tecno; MH Medical Hemp GmbH.

Which Aspects are Benefitting Industrial Hemp Suppliers?

“Legalization of Industrial Hemp Farming by Several Governments”

Hemp suppliers are benefitting from the legality of industrial hemp farming due to government backing across borders. Furthermore, the growing number of legal industrial hemp production countries promotes hemp farming globally.

• In 2021, the United Nations Conference on Trade and Development reported that over 40 countries across the world produced raw or semi-finished hemp.
• The European Parliament increased the tetrahydrocannabinol (THC) standard for industrial hemp crops from 0.2% to 0.3% in December 2021, as part of the new Common Agricultural Policy (CAP) 2023.
• In July 2022, Minnesota allowed the sale of hemp-derived tetrahydrocannabinol (THC) edibles with up to five milligrams of delta-8 and delta-9 THC in each serving, with a maximum of fifty milligrams per package.

“Growing Emphasis on Sustainability Supporting Hemp Trade and Manufacturing”

Increased demand for hemp in countries where it has not been legalized is promoting international trade. The expanding popularity of hemp and hemp-based goods in textiles, medicines, and food, together with the global demand for sustainable products, presents tremendous potential prospects for industrial hemp suppliers. Hemp exports from Asia, including China, are driven by the demand for more hemp fiber processing facilities in other countries.

Many governments worldwide are promoting hemp trade and manufacturing through partnerships and collaborations to increase global distribution. All of these factors are contributing to the expansion of the industrial hemp market size.

• In December 2022, InterCure Ltd., an Israel-based medical cannabis growing firm, signed a formal licensing agreement with Binske, a United States-based cannabis company. According to InterCure Ltd., the agreement would offer a multi-year exclusive right to sell, distribute, and produce Binske-branded goods in pharmaceutical markets such as Australia, the United Kingdom, Israel, and Germany.

What is a Major Hurdle for Industrial Hemp Manufacturers in Expanding Their Customer Base?

“Non-uniformity of Laws Across Countries Leading to Compliance Challenges”

Key players in the market that sell hemp and hemp-derived goods must adhere to varied regulatory restrictions across the world. While different countries around the world have varying levels of legalization for different types of hemp, manufacturers and stakeholders may struggle to comply with strict regulatory norms governing the production and sale of industrial hemp across multiple states within the same country. Furthermore, the legislation governing hemp containing cannabidiol (CBD) and tetrahydrocannabinol (THC) varies widely by state, complicating the commodity's trade.

Many countries prohibit the use of CBD hemp oil in personal care and cosmetics. China only authorizes the use of hemp seed and hemp seed oil, whereas CBD is only allowed in cosmetic items. It has yet to acquire clearance from the United States FDA for use in food or medicinal applications.

Hemp-derived CBD is not yet authorized for industrial usage in Australia, Spain, or the Middle East. The legislation governing the selling, manufacture, and prescription of industrial hemp remains very complicated and varied among states and nations, making the business one of the most severely controlled.

Country-wise Evaluation

The industrial hemp market in Japan is forecasted to expand at a CAGR of 15.1% from 2024 to 2034. The country is expected to occupy an industrial hemp market share of 29.4% by the end of 2034.

What are the Opportunities for Hemp Suppliers in the United States?

“Growing Demand for Biodegradable Polymers and Biofuels and Rising Environmental Consciousness”

Attribute	United States
Market Value (2024E)	US$ 700 Million
Growth Rate (2024 to 2034)	15% CAGR
Projected Value (2034F)	US$ 2.9 Billion

The industrial hemp market in the United States provides a plethora of opportunities for stakeholders to expand their product offerings. Aside from classic applications like textiles and oils, hemp-based products have the potential to be developed into new biodegradable polymers, ecological packaging, and even biofuels. This diversification, which is a key industrial hemp market trend, not only targets developing countries but also establishes hemp as a flexible and sustainable resource with applications in a variety of sectors.

How is South Korea Establishing Itself Amid Competition in the Market?

“Increased Investments in Research to Explore Applications of Hemp”

Attribute	South Korea
Market Value (2024E)	US$ 300 Million
Growth Rate (2024 to 2034)	15.3% CAGR
Projected Value (2034F)	US$ 1.4 Billion

Increased investment in research is critical to realizing the full potential of industrial hemp. Research activities might concentrate on enhancing hemp genetics for increased output and quality, optimizing growing practices, and investigating new uses such as advanced nanomaterials or medicines. This investment not only encourages innovation but also lays the groundwork for the hemp industry's long-term growth and competitiveness in a continuously changing market.

Category-wise Insights

Based on the research published by Fact.MR, the market is classified into various segments, including nature and product type. The organic segment is calculated to expand at a noteworthy CAGR of 14.7% from 2024 to 2034.

Why are Hemp Seeds in Such High Demand?

“Low Saturated Fat and Zero Trans-Fat Content of Hemp Seeds”

Attribute	Seeds
Segment Value (2024E)	US$ 3.6 Billion
Growth Rate (2024 to 2034)	14.4% CAGR
Projected Value (2034F)	US$ 13.7 Billion

Hemp seeds are in increased demand due to their remarkable properties and growing use in daily food intake. They are rich in tetrahydrocannabinol (THC), vitamins (D, E, B1, B2), and protein. Additionally, they have low saturated fats and zero trans-fat levels.

Rising consumer health consciousness and awareness of hemp seed benefits are contributing to global industrial hemp market growth. Furthermore, hemp seeds are increasingly used in various products, from culinary items to pharmaceuticals, driving their popularity.

Why Does Conventional Industrial Hemp Production Hold Prominence?

“Greater Cost-effectiveness of Conventional Hemp Production Compared to Other Methods”

Attribute	Conventional
Segment Value (2024E)	US$ 3.4 Billion
Growth Rate (2024 to 2034)	14.3% CAGR
Projected Value (2034F)	US$ 12.9 Billion

The conventional method of hemp production is more cost-effective than advanced techniques. Consequently, suppliers often favor this approach for manufacturing purposes. By reducing production time, it enables suppliers to increase their supply, resulting in higher production and sales. This adaptation aligns with key trends in the market.

Business Rivalry

Hemp suppliers play a crucial role in the supply chain. To thrive and contribute effectively, key players in the industrial hemp market should focus on establishing reliable supply chains, managing costs efficiently, considering vertical integration, prioritizing product quality, and staying informed about market trends. By implementing these strategies, hemp suppliers can navigate the complex landscape and ensure sustainable growth.

• Green Thumb Industries Inc. bought Leafline Industries in December 2021. Leafline is now permitted to cultivate, process, and deliver cannabis to patients. This is enhancing the company’s market reach in Minnesota.
• In March 2021, Curaleaf Holdings Inc. paid US$ 286 million for Emmac Life Sciences, a European marijuana firm. Curaleaf's geographic reach is expected to extend to eight nations, including Portugal, Spain, Germany, Italy, and the United Kingdom.
• In May 2020, HempFlax BV, located in the Netherlands, bought Thermo-Natur, a German firm that manufactures natural fiber insulation, and started a building supply division.

Fact.MR provides detailed information about the price points of key industrial hemp suppliers positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Key Segments of Industrial Hemp Market Research

• By Nature :

  • Organic
  • Conventional

• By Product Type :

  • Fiber
  • Seeds

• By End Use :

  • Food & Beverages
  • Consumer Textiles
  • Personal Products
  • Industrial Application
  • Hemp CBD
  • Supplements
  • Other Consumer Products

• By Region :

  • North America
  • Latin America
  • Eastern Europe
  • Western Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa