(MENAFN – GetNews) The industrial hemp market is projected to grow from USD 4.6 billion in 2019 to USD 26.6 billion by 2025, recording a compound annual growth rate (CAGR) of 34.0%
The industrial hemp market is projected to grow at a CAGR of 34% from USD 4.6 billion in 2019 to USD 26.6 billion by 2025. The growth of this market is attributed to the increased consumption of hemp-based products due to their various health benefits and increased incidences of diseases such as epilepsy and other sleep disorders. However, the complex regulatory structure for the usage of industrial hemp in different countries is expected to hinder the market growth of industrial hemp.
Industrial hemp is defined as ‘the plant Cannabis sativa L. and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol (THC) concentration of not more than 0.3% on a dry weight basis, according to US Farm Bill 2014. Rising awareness among the consumers about the benefits of industrial hemp, increasing legalization to cultivate industrial hemp in many countries, and rising application of industrial hemp in diverse industries such as textile, pharmaceutical, food, beverage, personal care, construction & material, furniture, and paper is expected to drive the market for industrial hemp.
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Opportunity: New product developments from industrial hemp
The increasing legalization of the cultivation of hemp is prompting the manufacturers and research institutions to develop new products from industrial hemp. Biofuel is one such application, which is expected to have significant growth potential in the upcoming years. With the rise in the prices of oil (diesel & petrol), along with the growing concerns about global warming, biofuels have been gaining popularity. Hemp seed extracts are used to produce hemp biodiesel, which can be used in any diesel operated vehicle. Furthermore, hemp can be used to make ethanol, which is currently processed from food crops like wheat and corn. This would result in increased efficiency of food production. Researchers from the University of Connecticut published a report in 2010 stating that hemp biodiesel has a high conversion efficiency of around 97%. Thus, its application as a biofuel would save much time for the production of biodiesel.
By application, the food segment is expected to dominate the market during the forecast period.
The industrial hemp market, by application, was dominated by the food segment in 2018, owing to the wide application of hemp seeds and hemp seed oil, due to their rich vitamin, protein, and omega-3 fatty acid content. Hemp seeds are consumed raw or are being used as a topping in cereals, smoothies, and yogurt. Rising consumer awareness about the benefits of consuming hemp-based products is driving the market for its application in food.
By source, the conventional source sector is expected to lead the market during the forecast period.
The market for industrial hemp from a conventional source dominated in 2018. Industrial hemp is mainly cultivated for fibre for the textile and paper industry. Furthermore, low prices of conventionally obtained hemp as compared to organic source and their growing application of in construction & material, automotive, and furniture industries are expected to drive its market in the coming years.
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APAC is expected to hold the largest share in the market
The Asia Pacific market accounted for the largest share in 2018. This dominance is attributed to the extensive production and consumption of hemp fibre in the textile and paper industry. Furthermore, the booming market for cosmetics and personal care products in the Asia Pacific region and legalization of industrial hemp in food supplements is estimated to drive market growth. The European region is projected to grow at the highest CAGR, owing to an increase in consumption of hemp seeds as food as well as their full application in other food products such as smoothies, yogurt, cereals, and bars, especially in countries such as Germany and the Netherlands. Moreover, the rise in awareness among consumers about the nutritional benefits of consuming hemp is further expected to fuel the demand for hemp-based food and personal care products. Furthermore, increasing legalization of industrial hemp in the European region in the coming years is expected to drive the industrial hemp market
Major vendors in the industrial hemp market include Hempco (Canada), Ecofibre (Australia), Hemp Inc. (US), GenCanna (US), HempFlax BV (Netherlands), Konoplex Group (Russia), Hemp Oil Canada (Canada), BAFA (Germany), Hemp Poland (Poland), Dun Agro (Netherlands), Colorado Hemp Works (US), Canah International (Romania), South Hemp Tecno (Italy), Plains Industrial Hemp Processing (Canada), and MH Medical Hemp (Germany).
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